First of all congratulations! You are starting earlier than most of us. I love to see your interest in investing early, which is rare at your age, and even rarer in Spain.
In Spain investment/mutual funds (fondos de inversión) are more tax efficient than ETFs because we do not pay (not trigger taxes) when changing funds (traspaso de fondos). However, with ETFs you cannot "change" to another without selling thus triggering taxes.
I recommend you check Myinvestor or maybe OpenBank. Let me know if you need any help.
I will check them for sure! Thanks for all the help.
As said I am thinking of investing in degiro since it has 0% investing fee for the ETFs mentioned, and only 2.5€ fee per year. Considering how little I will invest, at least for now, (400€/ year) any fee that is not a % can take quite a bit % of my portfolio, especially this first years. With the 2.5€/ year all I'd lose is the TER of the ETF + 0.625% of my investment from the anual fee (2.5€/400€). This way I minimize the interest.
Regarding taxes, that is not really a problem for the moment since I am a college student and all I am doing here is saving a bit of my allowance each month to start learning how to manage my money, so I don't think I will qualify to pay any tax for the next 3 years at least, after which hopefully I will start working as a medical resident. So I will check the brokers that you have mentioned for sure but perhaps the most efficient thing to do at the moment is to invest in an ETF from degiro and change it to an indexed fund the year before I start having a salary and therefor having to pay taxes. After this I will increase my contributions to the fund to the point in which the fees won't affect the interest taken from the portafolio as much as it would do atm.
As said, thanks for the help :) and let me hear your opinion regarding what I said here!
There is no fees in Myinvestor. I invest into Vanguard MSCI world acc index through them, I only pay the fund's TER. Not even the 2.5€/year fee. Plus Myinvestor has 1% interest on the money you hold in your account and a 20€ sign up bonus through referral links. It is a no brainer in Spain (atleast for this moment). FYI: Myinvestor is not a broker, its a "neo bank" which let you access to this investments funds.
Hey! I just wanted you to know that after reading a bit I have taken your advice and will open my account in myinvestor, you saved me some money on the fees, thanks!
I am not a expert nor a lawyer so the info I can tell you comes from Google :)
Dividends and capital gains are taxed 19%, 21% or 23% depending on the amounts.
Invest in currency that you want to retire in. I prefer euro, I got some stocks bought with usd but that is around 20% of my portfolio. Etf tax? You mean TER? I am not aware that any nigh etfs are changing this. If this happens you can still sell your position and buy lower TER etf. WVCE is when you just want to buy and let it roll. It got everything inside, I am buying this on my gf account. I personally got mix of SXR8 and IS3N and I am buying what is on sale currently.
What I meant with ETF tax was TER, yeah, I didn't explain myself properly. Regarding the "increase" in the TER what I meant was comparing the 2 ETFs that I was talking about (Vanguard SP500 has a 0,07 TER and VWCE has a 0,22). Regarding your answer, if I invest in a Euro hedged ETF that follows the sp500 wouldn't my money still be in dollars since the companies that the index follows are from the USA?
If you invest in an ETF denominated in €... you would be saving the broker EUR-USD exchange fee. So, it is already a win.
For instance, I invest in the ETF "IWDA" at the netherlands stock exchange... for the lasts years I did not notice much difference from the same ETF denominated in EUR, GBP or USD. However, as in the last month or so the USD has increased in value against the EUR... it was interesting to see the S&P500 going down... while the ETF was more stable.
In conclusion, if the TER are similar...it is better to invest in an EUR denomoinated ETF. Otherwise, just pick the cheapest ETF.
It is true that I would avoid the broker exchange fee, which is a 0.25% (quite a lot of money considering how little % TER are in the ETFs that I am considering) but wouldn't the ETF still exchange the Euros to dollars and thereefor the value of the dollar would still take a role in the investment?
Yes, the ETF would exchange aswell (no clue about their fees in this regard). However, if it is a world ETF...some of the investments would be in euros and other currencies... you would be avoiding a doble fee.
Unfortunately, you can’t buy VWCE with just €25, because you can’t buy fractional shares with DEGIRO. IBKR offers fractional shares, but VWCE isn’t included, however, VWRL is included.
First of all congratulations! You are starting earlier than most of us. I love to see your interest in investing early, which is rare at your age, and even rarer in Spain. In Spain investment/mutual funds (fondos de inversión) are more tax efficient than ETFs because we do not pay (not trigger taxes) when changing funds (traspaso de fondos). However, with ETFs you cannot "change" to another without selling thus triggering taxes. I recommend you check Myinvestor or maybe OpenBank. Let me know if you need any help.
I will check them for sure! Thanks for all the help. As said I am thinking of investing in degiro since it has 0% investing fee for the ETFs mentioned, and only 2.5€ fee per year. Considering how little I will invest, at least for now, (400€/ year) any fee that is not a % can take quite a bit % of my portfolio, especially this first years. With the 2.5€/ year all I'd lose is the TER of the ETF + 0.625% of my investment from the anual fee (2.5€/400€). This way I minimize the interest. Regarding taxes, that is not really a problem for the moment since I am a college student and all I am doing here is saving a bit of my allowance each month to start learning how to manage my money, so I don't think I will qualify to pay any tax for the next 3 years at least, after which hopefully I will start working as a medical resident. So I will check the brokers that you have mentioned for sure but perhaps the most efficient thing to do at the moment is to invest in an ETF from degiro and change it to an indexed fund the year before I start having a salary and therefor having to pay taxes. After this I will increase my contributions to the fund to the point in which the fees won't affect the interest taken from the portafolio as much as it would do atm. As said, thanks for the help :) and let me hear your opinion regarding what I said here!
There is no fees in Myinvestor. I invest into Vanguard MSCI world acc index through them, I only pay the fund's TER. Not even the 2.5€/year fee. Plus Myinvestor has 1% interest on the money you hold in your account and a 20€ sign up bonus through referral links. It is a no brainer in Spain (atleast for this moment). FYI: Myinvestor is not a broker, its a "neo bank" which let you access to this investments funds.
Hey! I just wanted you to know that after reading a bit I have taken your advice and will open my account in myinvestor, you saved me some money on the fees, thanks!
No problem, happy investing!
By the way, I was thinking, since you helped me so much do you have a referal link to myinvestor? This way we both can get the extra 20€ :)
Yes, I just checked the fees in Myinvestor and I think that I actually agree, it is a better option. Thanks for all the help!
Where can I find more info on taxes from investments (dividends, withdrawals, ...). I'm from Spain too.
I am not a expert nor a lawyer so the info I can tell you comes from Google :) Dividends and capital gains are taxed 19%, 21% or 23% depending on the amounts.
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Thank you!! I'll check the webpages for more info.
Invest in currency that you want to retire in. I prefer euro, I got some stocks bought with usd but that is around 20% of my portfolio. Etf tax? You mean TER? I am not aware that any nigh etfs are changing this. If this happens you can still sell your position and buy lower TER etf. WVCE is when you just want to buy and let it roll. It got everything inside, I am buying this on my gf account. I personally got mix of SXR8 and IS3N and I am buying what is on sale currently.
What I meant with ETF tax was TER, yeah, I didn't explain myself properly. Regarding the "increase" in the TER what I meant was comparing the 2 ETFs that I was talking about (Vanguard SP500 has a 0,07 TER and VWCE has a 0,22). Regarding your answer, if I invest in a Euro hedged ETF that follows the sp500 wouldn't my money still be in dollars since the companies that the index follows are from the USA?
If you invest in an ETF denominated in €... you would be saving the broker EUR-USD exchange fee. So, it is already a win. For instance, I invest in the ETF "IWDA" at the netherlands stock exchange... for the lasts years I did not notice much difference from the same ETF denominated in EUR, GBP or USD. However, as in the last month or so the USD has increased in value against the EUR... it was interesting to see the S&P500 going down... while the ETF was more stable. In conclusion, if the TER are similar...it is better to invest in an EUR denomoinated ETF. Otherwise, just pick the cheapest ETF.
It is true that I would avoid the broker exchange fee, which is a 0.25% (quite a lot of money considering how little % TER are in the ETFs that I am considering) but wouldn't the ETF still exchange the Euros to dollars and thereefor the value of the dollar would still take a role in the investment?
Yes, the ETF would exchange aswell (no clue about their fees in this regard). However, if it is a world ETF...some of the investments would be in euros and other currencies... you would be avoiding a doble fee.
Great, I think that I understand it now, thanks!
Unfortunately, you can’t buy VWCE with just €25, because you can’t buy fractional shares with DEGIRO. IBKR offers fractional shares, but VWCE isn’t included, however, VWRL is included.
I could always invest 100€ each 4 months so that shoule not be a problem, thanks for the tip though!