Investing in Euros / Sterling; Broker Limitations?

3 posts in this topic

Have spent many hours studiously browsing the Finance pages here, and have learned a great deal (thanks, Starshallow et al)  While I see plenty of recommendations for different banks / brokers / comparison sites (InteractiveBrokers / Lynx / / Degussa / DeBa / etc, I haven't found what I'm looking for.

 

1:  Does it matter (apart from tax issues) where I am resident in terms of using a broker?   I'm familiar with UK side of things (H-L / Vanguard) but not so in Germany - can I just feed my UK broker with Euros if buying into a Euro-denominated product and take proceeds in Euros in return?   Or do I have to jump through Forex hoops at one or both ends of the Buy/Sell cycle?   Or should I only look at the German "branch" of any multi-national broker?   Or at a Germany-only broker?

 

2. As a EU resident, can I access all / any EU brokers without fear or favour?   Or should I deliberately limit myself to German banks / brokers?  [And dare I ask what about Brexit wrt accessing UK brokers?]

 

3. I want access to cheap trackers eg Vanguard (VG) but the EU/German brokers I've looked at don't seem to offer this.....

 

I ask since have family in Germany (and Belgium) who want investments made on their behalf, and although I'm no longer in UK (got out just before the Brexit WA shut things) it is the UK that I am most familiar with.   For example:  looking at Buy/Hold not Day Trading;  and mainly at Trackers (VG) or Wealth Preservation Funds (CGT / PNL).  I contacted VG and they said while they hoped to be opening some sort of account for individual investors in future in Germany, for the moment it was institutional investors only thus would need to come though a 3rd party.

 

Thanks in advance.

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12 hours ago, Gordie said:

2. As a EU resident, can I access all / any EU brokers without fear or favour?   Or should I deliberately limit myself to German banks / brokers?  [And dare I ask what about Brexit wrt accessing UK brokers?]

Yes. You may not be able to buy certain securities (e. g. ETNs)  if you´re residing in the wrong country. However, from what you wrote this shouldn´t be a problem for you as you seem to be looking for plain vanilla stuff.

 

12 hours ago, Gordie said:

1:  Does it matter (apart from tax issues) where I am resident in terms of using a broker?

It may be difficult to find a UK broker - which is a pity as they offer better protection for bankruptcy (EU demands only protection of 90% of up to € 20000).

 

12 hours ago, Gordie said:

3. I want access to cheap trackers eg Vanguard (VG) but the EU/German brokers I've looked at don't seem to offer this....

As Lynx is an introducing broker (whatever that means) for Independent Brokers they do.

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I wonder if Vanguard expense ratios are same in US vs. EU

 

EU probably is a bit higher. 

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