I've just noticed that Interactive Brokers offer lower minimum activity levels for those under 25, i.e. $3 per month.
This would be ideal for someone looking to invest a small amount per month to build their portfolio.
Unless you are aged 18 - 21, a possible barrier to opening an account would be the $10,000 (€6,814.12) minimum account balance. For those aged 21 or under, it's a much more reasonable $3,000 (€2,044.53).
Either way, it would be very worthwhile to save up the minimum required balance and using Interactive Brokers as opposed to Quinn Life.
Let's take an 18 year old who lodges the minimum balance of €2,045 and then lodges €250 per month into a Eurostoxx 50 ETF until they turn 26, i.e. 8 years.
The Eurostoxx 50 ETF by dbxtrackers has an annual management charge of 0.15% as opposed to Quinn Lifes 1%. However, Quinn Life have no monthly charges whilst, with Interactive Brokers, you will be charged €4 per month for the trade (€6.81 per month when you're 22 as this is the minimum activity charge).
After 8 years with Quinn Life at a growth rate of 6% p/a, the fund will be worth €32,483.38.
However, with Interactive Brokers, the fund will be worth €33,282.68.
This means there's just over a €800 difference in the first 8 years - or about €8.33 per month for the hassle of logging onto your online banking, transfering the money to your broker, logging onto your broker account and clicking the buy button (about 5 minutes work).
However, over the next 8 years, you will have saved an additional €4,112.41 - €42.84 per month.
Over the next 8 years (years 16-24), you'll save an additional €13,122.09 - €136.69 per month.
Therefore, as you can see, the savings are there provided you are investing for the long term.
This would be ideal for someone looking to invest a small amount per month to build their portfolio.
Unless you are aged 18 - 21, a possible barrier to opening an account would be the $10,000 (€6,814.12) minimum account balance. For those aged 21 or under, it's a much more reasonable $3,000 (€2,044.53).
Either way, it would be very worthwhile to save up the minimum required balance and using Interactive Brokers as opposed to Quinn Life.
Let's take an 18 year old who lodges the minimum balance of €2,045 and then lodges €250 per month into a Eurostoxx 50 ETF until they turn 26, i.e. 8 years.
The Eurostoxx 50 ETF by dbxtrackers has an annual management charge of 0.15% as opposed to Quinn Lifes 1%. However, Quinn Life have no monthly charges whilst, with Interactive Brokers, you will be charged €4 per month for the trade (€6.81 per month when you're 22 as this is the minimum activity charge).
After 8 years with Quinn Life at a growth rate of 6% p/a, the fund will be worth €32,483.38.
However, with Interactive Brokers, the fund will be worth €33,282.68.
This means there's just over a €800 difference in the first 8 years - or about €8.33 per month for the hassle of logging onto your online banking, transfering the money to your broker, logging onto your broker account and clicking the buy button (about 5 minutes work).
However, over the next 8 years, you will have saved an additional €4,112.41 - €42.84 per month.
Over the next 8 years (years 16-24), you'll save an additional €13,122.09 - €136.69 per month.
Therefore, as you can see, the savings are there provided you are investing for the long term.