Sunday, 26 November 2017

149. Goal and strategy considerations week 47, 2017

BabyJ’s got a flu or something. Poor bugger. And to top the personal disaster: this also means no attendance to any Sinterklaas intocht nearby for our family. We’ll make it up with putting our shoes at the fireplace (ehrm, we have none) and sing our best Sinterklaas songs. We all love those :). But, now that we’ve got one man down and the weather doesn’t allow any gardening: time for another strategic moment.

This one is all about commissions.

Not too long ago, I switched brokers. Today I work with 2 broker systems at the same time, ‘cause my previous swap cost me an arm and a leg getting all my positions over to the new portfolio.

Today, I  count Degiro (And no, this is not affiliate marketing, opening up an account is all yours to keep) as my third broker account.

My second account was with Binck (same here).

Very first account, that got closed entirely, was with my house financials dealer ABN Amro (..). Reason for me to shut this one down was because the commissions gave me the feeling to get ripped off each time. Little did I know. Closing this account would mean throwing out a 2 ton anchor from a ‘99 VW golf currently (so it felt) enroute to financial independence (back in the day). The gains I made with this bank seemed to condense on the glass doors as I walked out.

Hence, my reason to keep the second account alive this time and not go for a full portfolio swap. Now, what I want to see in this blog is the difference in commissions after opening up an account at Degiro. For sure, all Binck transactions burnt quite the hole in my plans for early retirement. Looking at the following table, there’s only a comparison for transactions I made on 2 stock exchanges. This kind of did it for me already.


Net Costs @Binck

Net Cost @Degiro

AEX transactions <500 EURO
10
EURO
2,08
EURO
AEX transaction >500 EURO
10
EURO
2,08
EURO
Receiving dividends
0

0

NYSE transaction <500 USD
11,18
USD

USD
NYSE transaction >500 USD
12,07
USD
0,57
USD
Yearly fee per Stock exchange


2,5
EURO
Yearly fee per account
5,28


EURO

So indeed, at Degiro, there’s a subscription fee for a whole year to make transactions per single exchange. So, when purchasing stocks all over the place, this could become messy.

Now, where I seemed to have an average transaction rate of 5 per month (60 per year…) you do the math… Only in commissions, apparently I must’ve burnt well over 0,6k a year at Binck (and that is only for BUYing transactions).

Knowing that I have been joining their circus for about 5 years now, an annoying itch creeps up my back.

And I didn even get a T-shirt.

So, since  dividends are not charged a commission, I’ll leave my account at Binck right where it is, but make damn sure that my  purchases will be in the blue environment of Degiro. For now :). Teaser: Lately I’ve been looking at a fun game called Robinhood.com.

If you have a minute, don’t hesitate to fill me in on your thoughts / opinions. Some good (and free) advice is always welcome. If you feel like connecting and sharing: please hit the Google+ follow button or find/follow me on twitter!
Thanks for stopping by and have a great day!




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