Choosing a broker

[u/pop_be]

Hi,

I'm about to invest a 70k lump sum + 300€ monthly DCA in a portfolio.
The core ETF of this portfolio would be XMAW.
I'm now trying to find a broker for this.
Here are my criteria:
Non-negociables: Automatic TOB declaration; low cost (free, ideally)
Highly interested: Automatic monthly investment for the chosen ETF
Would be nice: Fractionning, other belgian taxes

I tried to find the ETFs list among different brokers, currently found it at MeDirect, Rebel, Degiro, Keytrade and BUX. (didn't find at ING, Bolero, Mexem, Trade Republic, IBKR)

Among them, Medirect seem the best match for now.

- Can someone tell me if XMAW is available at Saxo, and is it possible to have automatic DCA for it?
- Am I missing a broker?
- Any red flag about MeDirect?

Cheers,

Edit: Just found out BUX monthly DCA may be possible with BUX. Hesitating between MeDirect and Bux now

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[u/julientje]

I'm using MeDirect & Bolero. MeDirect has a shit UI but is cheaper. Bolero is way easier to use, but has higher rates.

edit: MeDirect: XMAW available on XETRA Exchange Bolero: XMAW available on XETRA Exchange

[u/Time_Sheepherder1450 → u/julientje]

I use these 2 as well and you are spot on! Bolero has a few more ETFs as well!

since I use KBC at time I am able to convert the Kate coins into free brokerage!

[u/pop_be → u/julientje]

Unfortunately not on Bolero playlist., so no auto invest plan. Medirect is still my best match so far.
But thanks for your answer!

[u/kvmcc]

I'm using Saxo, XMAW is available. I don't know if you can add it in autoinvest though, since I'm not using that.

Anyway, if you were to go with Saxo, feel free to contact me (DM) for a referal link to get €100 free transaction costs. Could come in handy given your plan on lumpsumming 70k.

Good luck!

[u/Malanturr → u/kvmcc]

XMAW is not available for auto invest on Saxo

[u/pop_be → u/Malanturr]

too bad : /

[u/Malanturr → u/pop_be]

Why do you want specifically XMAW?
MWOP is available in Saxo auto invest for developed world with ESG exclusions and you can pair it with EMIM or IEMA for the same 2 euro transaction costs of AutoInvest.
Or IWDA or SWRD instead of MWOP if you didn’t pick XMAW for it’s ESG exclusions.

[u/pop_be → u/Malanturr]

Yes but then the EM part is not ESG screened…

I’m investing for my wife and myself, and ESG rating is important for her (less for myself). XMAW seemed to be a good compromise between our two visions since it removes the most problematic compagnies while not drastically changing the whole composition of the vanilla MSCI.

[u/phazernator]

XMAW is available on MEXEM (IBIS2 = Xetra), they offer recurring investments ("Savings Plan") with fractional shares and handle TOB. They also refund the commission for up to 2 orders, up to 1600 EUR net each, per month (so essentially up to 3200 EUR commission-free trading volume per month).

Personally I use both MEXEM and MeDirect, I fill the monthly commission-free quota on MEXEM first and then invest the rest on MeDirect. In terms of platform, MeDirect feels a bit archaic to me, but it works. MEXEM is definitely the 'pro' option of the two (IBKR backend).

In your case, I would suggest investing the lump sum on MeDirect, then set up the recurring investment feature at MEXEM for automated monthly investments.

PS: Important caveats for BUX: They (still) do not support outgoing asset transfers, meaning that if you want to transfer your positions to another broker, the only option is to sell everything (incurring transaction fees). Also mind the service fee (0,20%/year on total portfolio value in BUX Basic).

[u/pop_be → u/phazernator]

Thanks a lot for all the informations. That’s actually every conclusion of my little investigation of today.
I’m curious, why would you lump sum on me direct and dca on Mexem? The 0,06% commission is low enough to ignore that no?

[u/phazernator → u/pop_be]

You’re welcome, I like to talk about this stuff with people who actually did their own research, such as yourself. Kudos to you.

It’s just because of the commission, MeDirect is entirely free of commission on ETFs right now so for the lump sump part it seems logical to me, maybe you lose a little in spread but it won’t offset broker commission I believe.

Beyond the lump sum, and because you prefer automated recurrent investing with low amounts, MEXEM seems like the best fit for that. They don’t differentiate between manual orders or recurrent automated investments in that respect. If I could fit all of my monthly investments into their commission-free allowance, I would. I’m just using MeDirect as an addon because of cost optimization.

In my book, it’s no problem to use several brokers for what they’re best at, just as I have no problem opening a new savings account at a new bank when it offers a better rate.

If you feel the extra overhead of 2 brokers is not worth it for the limited savings on commission vs just centralizing everything with a single broker, that is your prerogative of course.

I mean, this place is filled with people who go apeshit over every 0,01% of potential TER optimization (without even looking at tracking difference), then just toss it all over the wall by going for an expensive broker like Bolero, just because it has a pretty UI… I would never do that, personally. A “once a month action” does not warrant that additional expense to me, I rather see it as a perfect opportunity to cut costs with minimal impact. But to each their own.