Many people are looking for ways on how they can earn more money. Various people try their hands at multi-level marketing while others try their luck at the gambling casinos. Although these are good options, they have a lot of drawbacks. They are not reliable ways of making money. Winning at casino is just a matter of chance, while multi-level marketing takes time to pay off. On the other hand, there are still many people that look into investing money for beginners ireland as a way of generating an income.
If you’re looking for different ways to save money in Ireland, then you should probably take a look at the ways on how to invest money for beginners ireland. Yes, if you don’t want to work any more after retirement, you should start investing today. But you need to know some simple investment principles first before jumping into your investments.
How to choose the right investments?
Before you choose where to invest money, you’ll need to consider what level of risk you want to take. This will help you find assets that have a matching volatility.
It might be easier to think in the mindset that higher risk means greater potential profit but also higher potential losses. Keep in mind that when choosing funds with lower risk, while there’s less chance you’ll suffer a high loss, lower volatility also means the highs aren’t as high either.
Tools like Smart Invest will ask you questions to match you to a suitable risk profile.
Set your goals
Goal-based investing can help you pick a fund that’s right for you.
Think about why you want to invest with the hopes of making a profit. Is it maybe:
- To go on the holiday of a lifetime
- To save a deposit for a house
- To provide for your children’s future
- To start your own business
- To protect your purchasing power on your hard-earned money
Or is it something else? When considering your goals, think at least 5 years in the future – don’t forget that investing is a long game. Make sure that you will not need to access the money you are investing in the short term.
Decide how often to invest
If you don’t have a large lump sum, that doesn’t mean you can’t invest. Investing in instalments can be a great way to get started and can be better than not investing at all.
You can invest a smaller amount and top up as often as you’d like once you have more money to invest. For example, you could siphon off a portion of your paycheck each month, or save your money from take-aways for a few months and top up your investment with that money.
However, if you have the lump sum to invest from the get go while still maintaining a rainy day savings, it’s worthwhile to invest in one go. When investing, time really can equal money!
DEGIRO
Dutch firm DEGIRO launched its online stock brokerage services in the Netherlands in 2013.
DEGIRO now operates in 18 European countries – including Ireland.
Readers of the Investors Chronicle / Financial Times voted DEGIRO as the top-rated investment platform and investment app. in 2020
DeGiro B.V. merged with flatexDEGIRO Bank AG in early 2021, creating the biggest online execution-only broker in Europe with its own banking license.
Flatex DEGIRO Bank Dutch Branch, trading under the name DEGIRO, is the Dutch branch of flatexDEGIRO Bank AG.
As a German regulated bank, flatexDEGIRO Bank AG is primarily supervised by the German financial regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin . ) It uses EU passporting rules to allow it to operate across the single market.
You can use the DEGIRO desktop site or their mobile app for share dealing. The account currency is in Euros only.
DEGIRO Share Trading Fees
- Irish shares : €2 + 0.05% per trade
- UK / European shares: €4 +0.05% per trade capped at a maximum of €60
- US shares : €0.50 per trade + (USD 0.004 per share)
- ETFs – some are fee free otherwise €2 plus 0.03% per trade.
- Annual fees – DEGIRO has an annual fee you for connecting you to exchanges. This fee is currently €2.50 per exchange per year but there is no fee for using the Irish exchange for Irish residents.
- Foreign exchange fees – Manual = €10 plus 0.02% OR automatic = 0.1%
Deposits can only be made by on DEGIRO by bank transfer and there is no minimum deposit amount.
DEGIRO is partnered with Flatex Bank and the bank is covered by the German Deposit Guarantee Scheme. This means that DEGIRO client’s uninvested cash is covered, up to €100,000.
Your capital is at risk. Other fees may apply
BUX Zero
The BUX Zero trading platform is a recent newcomer to Ireland . It is owned by BUX which is a European mobile brokerage company, based in Amsterdam . It is a mobile-only platform and is available on Android and iPhone.
The range of shares available to buy is currently limited to about 2000. The selection of Euro ETFs is currently around 40 – but more are being added.
BUX Zero is currently offering a Free Share bonus to new customers. (No purchase needed).
BUX will select this Free Share bonus from companies that are available in the BUX App and have a share price between approximately €1 and €200.
BUX Zero is regulated by the AFM, The Dutch Authority for the Financial Markets.
All client funds held at ABN AMRO Clearing Bank are protected by the Dutch Bank Guarantee scheme up to €100,000.
Deposits and withdrawals on BUX Zero from Irish customers can be made by SEPA bank transfer. There are no deposit or withdrawal fees.
BUX Zero Fees
- US shares on BUX Zero are commission FREE – but there is a 0.25% foreign exchange fee. (i.e €1 on every €500 )
- EU Shares/ETFs – commission is €1 per trade.
- However , customers can opt for a ” Zero Order” trade on all EU stocks and ETFs- which will be commission-free.
- Zero Orders will be executed at the end of the trading day, between 4 and 5 pm (Central European Time). Orders placed after 4 pm (CET) will be executed on the following day. If the price differential at the trade exceeds 5% for sell orders or 4% for buy orders, the zero-order is cancelled.
At BUX Zero, the maximum amount you can invest in a single order is €25,000. You can of course put in as many orders as you’d like.
As with all share trading – Investing involves risks. You can lose your deposit.
Davy Stockbrokers
Davy Stockbrokers are based in Dublin and are regulated by the Central Bank of Ireland. The minimum investment is €500. Davy Select is their online trading platform and it seems to be a popular site for people checking out Irish share prices. They do have an app as well, but it is not possible to buy or sell shares on the Davy Select app. The fees shown below are the online fees for the Davy Select Personal Investment Account (Execution-Only).
Online Share Dealing Fees at Davy Select:
- Trading fees of 0.5% – Minimum €14.99 per trade.
- €25 Foreign Transaction Settlement Charge per trade for each trade of shares listed outside Ireland and UK .
- Execution Service Fee of €50 per quarter ( less any commissions paid that quarter).
- Minimum Fee per trade for shares listed outside Ireland and UK : 0.06%.
- Foreign exchange fees not specified but “max 1%.” (But you can deposit Euro / GBP or USD if you are able to do so and avoid conversion fees.)
Tips for the beginner investor in Ireland
Start small… and make it a habit
Investing is not only for the wealthy – it’s for those who want to become wealthy. What’s important is making a start.
These days, it’s possible to start investing with relatively small regular amounts. For example, at Moneycube we can get you invested from as little as €250 per month.
If you can kick off your nest egg with an initial lump sum, so much the better.
Investing is a long-term game, with the prospect of decent returns. From small beginnings, over time you can build up a substantial pot of money.
Invest with purpose
Investing with purpose means getting clear on 3 things:
- What you want to achieve by investing;
- When you want to achieve it; and
- How much risk you’re prepared to take.
Clear expensive debt first
This one is simple. Expensive debt is basically any debt apart from a mortgage. Above all, it’s credit card debt (which isn’t cleared every month) and personal loans.
No investment offers a guaranteed return which exceeds the cost of expensive debt.
Decide how you’ll invest
Some people prefer the thrill of the chase involved in investing directly into shares, or alternative assets such as forestry, or gold.
Before put your money into these asset classes, rather than investment funds, stop and ask yourself a question. Are you truly investing, or are you speculating?
Advice please!
Lastly – if you’re a beginner investor, seriously consider using a service that provides financial advice, rather than a going it alone.
Conclusion
Investing money for beginners Ireland is hard, but it doesn’t have to be, if you just know what to do. This article will help you learn the best way to start investing.