🟢 INTERACTIVE BROKERS - Where I hold majority of my investments smartmoneywithkai.com/ibkr 🟢 TRADING 212 - Get a free share worth up to €100 smartmoneywithkai.com/trading212
im on trading 212 im in australia and i wanna buy some SWISS shares in swiss francs but on my account i can only change AUD to either US euros pounds not swiss francs so that means ill never be able to buy swiss shares in swiss francs right?
with trading 121, if you wanna withdraw a large sum say over US$10,000- US$20,000 is it quick and easy or do they want more verification? like another form of ID or another self of you with a BILL showing your name and address or not?
@@petejames1326 Strange, you could convert AUD to USD and then USD to CHF that should work if you really wanted to buy it in CHF, but you can also buy some Swiss shares in USD or EUR if I am not mistaken 👌
Hey Kai...I find all your videos very informative & in depth. You really do your research & I trust & appreciate your opinions & advice:) My only gripe, is you speak a little too quickly. My advice would be, slow it down a little & take some breaths & pauses during your lessons. Your relentless pace gives me anxiety of sort. I say this with all due respect & think you are a great guy!🙏
Hi mate, really appreciate your kind words 🙌 And I agree, I sometimes get to carried away and excited that I tend to speak too fast, so a good reminder to slow down, last thing I want is to give you anxiety with my speed 😉 Cheers mate 👋
Hi Kai, just to let you know that when you invest through Trading 212 actually you invest through IBKR. From Trading 212 FAQ: Where are my shares held? Your shares are held in a pooled account at Interactive Brokers, which is commonly known as an omnibus account.
Pooled account means if t212 goes bust, it goes locked, probably wont see your money, or it will be a long litigation until everyone gets paid out. IBKR everything in your name. Even money managers, funds use ibkr, with their 50+mil portfolios. IBKR is hands down best broker. In addition, they offer the best interest rates to borrow against your portfolio. In usa its like 5-6%, even cheaper than heloc (borrowing against your property). Car loans are probably 9%. Want to buy a car, borrow vs your portfolio with 1 click, and you got money, no credit check nothing. Best thing, if you have your portfolio via Swiss IBKR, you can borrow... are you ready? for 1.7-2.4%. Basically never sell your stocks so no capital gains etc, and just borrow against portfolio. Thats how rich pay no tax (borrowing vs their stocks, or vs stocks of their company- elon musk, bezos).
Thanks for the comment and for pointing that out. Actually, it's a bit more nuanced. While Trading 212 does use Interactive Brokers (IBKR) to hold shares in a pooled/omnibus account for certain markets, this doesn’t mean you’re directly investing through IBKR. You're still investing via Trading 212, which acts as your broker. They simply use IBKR as a custodian to hold your shares. So, while your shares are held at IBKR, Trading 212 remains the platform you're using to make investments. Hope that clears things up. Cheers
Thanks for sharing your insights. There are a few points worth clarifying. Pooled Account (Omnibus Account): Yes, Trading 212 uses an omnibus account at Interactive Brokers to hold your shares, which means they are pooled together. However, this doesn’t mean you’d automatically lose your money if Trading 212 goes bust. Under UK and EU regulations, your investments are protected separately from the broker’s assets. In the UK, the FSCS protects up to £85,000, so while there might be some delays, you wouldn't necessarily lose everything. IBKR: It's true that IBKR offers individual accounts, and for high-net-worth individuals, it provides great flexibility with margin loans, often at lower interest rates than traditional lending options. However, not all investors need this level of service. Trading 212, with its simplicity and commission-free structure, is a better fit for smaller investors who may not require IBKR's advanced features. Borrowing against your portfolio, as you mentioned, is a strategy used by wealthy investors to avoid capital gains tax, but it comes with risks. If your portfolio’s value drops significantly, you could face margin calls, which is something to consider carefully. So while IBKR is fantastic for larger portfolios, Trading 212 still has its place for beginner or casual investors. Cheers
Ways to fund your account would be a useful part of the review. Especially for FX currencies. Currently, only Swift is offered by T212 in Australia, while IBKR can use Swift, IBAN, etc.
Hi and my pleasure. Both are very secure and well protected, though I would give the edge to IBKR. As for DRS, T212 does not offer it for now, IBKR does 👌 Cheers
Hey Kai, I think you committed a mistake on the fees section for stocks of IBKR. The countries breakdown refers to the stock exchange where the stock is listed, and not to residency of the investor. Am I correct?
Hey Kai. Great video as always. You mentioned that you live between 2-3 countries, how does that work in terms of investment? Do you simply mean that you can access you IBKR account while travelling or you meant that you have to constantly adjust your tax location within the broker? Also how do you deal with taxes? Do you your capital gains taxes in the country of your choice or in the country where you spent most time of the year?
Hi and thanks a lot. Good question, depends on each country, but generally if you stay somewhere more than 6 months, you will need to pay taxes there. In my case I live majority of the year in the UAE hence do not pay any taxes 🙏
Thanks for the video Kai! Solid info as usual! Q for you, since you have experience with both brokers for years now, with which broker would you prefer to buy US Treasury bills (1-2 month maturity)? It's there any insight or advice you can share when comparing the two for buying this specific investment asset? Thanks again a appreciate you
Thanks for the kind words. Glad you found the info helpful. When it comes to buying US Treasury bills (T-bills) with a short maturity (1-2 months), both brokers have their pros, but here’s a breakdown: Interactive Brokers (IBKR): IBKR is generally better suited for fixed-income securities like T-bills. They have a broader offering in terms of US government bonds and T-bills, and their fees are usually low, especially if you're buying directly in the bond market. IBKR also provides detailed research and tools that can be helpful when selecting specific Treasury investments. Their platform is advanced, but for T-bills, it's relatively straightforward once you get used to it. Trading 212: Trading 212, while excellent for stock and ETF trading, isn’t primarily focused on fixed-income securities like T-bills. It may not provide the same range or depth of offerings as IBKR. You may also face limitations or slightly higher fees for this type of asset. My Preference: For something specific like short-term T-bills, I’d lean towards IBKR. The range of offerings, lower fees, and overall access to US government securities make it the better option. Plus, they have better support for fixed-income investments overall. One tip: Keep an eye on transaction fees and minimum investment amounts on either platform, especially for short-term T-bills. Even small fees can affect your return on such short maturities. Hope that helps. Cheers
Hi 👋 You're right, Trading 212 is great for stocks and ETFs, but the lack of options trading can be a downside for some. If you're into options, platforms like Interactive Brokers or eToro could be worth exploring-they offer a wider range of trading tools and instruments. It’s all about finding the right fit for your strategy. Cheers
Labas Ignas, sadly not, IBKR seems to be fine with it, but T212 does not enable them yet so fingers crossed it'll be added eventually. You could transfer T212 -> XTB -> IBKR but would be slower and a bit more expensive I guess. For now I just keep it in both. Cheers
Which should I choose for long term investing? I am still a student, and thought that the best move would be to keep investing in 212 until i complete my studies (3 years) so i can avoid the 1.25 eur fee of ibkr. Since I am only investing 100 eur a month, thats still 1.25%, which is significant when it comes to low budgets. But, I don't trust them as much as IBKR
Hi, both are solid options. If you don't feel comfortable with T212 don't use them. No need to stress about your money. If you do, like I and many others do to feel comfortable, then yes, much cheaper especially for smaller amounts. I would go with T212 in your case 👌
Hi Kai, How are you transferring money from UAE to Trading212? Are they causing you any issues for moving to another country? If one were to arrange transfers from UAE to Trading212, is it as simple as AED transfers like it is now with IBKR which had started to accept AED bank transfers. Your research and input in this is highly appreciated
Hi, for now I haven't send money from UAE to T212 but should be straightforward transfer. I would convert my AED to USD locally and then send USD as they don't support AED yet. You can also easily relocate your T212 to UAE which should make it easier 👌
Kai, thank you for this video. Just subscribed to Trading 212 through your link. Unfortunately they do not allow joint accounts, not sure about Interactive Brokers. This is an issue if one of the spouses passes away bec of inheritance tax. I would appreciate your thoughts.
Hello! 😊 Thank you for sharing your experience with Trading 212 and for subscribing through the link. I understand that the lack of joint account options can be a concern, especially when considering inheritance tax implications for spouses. Trading 212 and Joint Accounts Trading 212 currently does not offer joint accounts. Their platform is primarily designed for individual investors, which might limit options for couples looking to manage investments together. Interactive Brokers and Joint Accounts Interactive Brokers, however, does offer joint accounts. They provide various account types, including joint tenant accounts with rights of survivorship, which could address your concerns about asset transfer in the event of a spouse's passing. Inheritance Tax Considerations When one spouse passes away, the way assets are held can significantly impact inheritance tax and the ease of transferring those assets. Here are some points to consider: Joint Accounts Benefits: Assets in joint accounts often pass directly to the surviving spouse without going through probate, which can simplify the process and potentially reduce tax liabilities. Tax Thresholds and Exemptions: Many jurisdictions offer inheritance tax exemptions or higher thresholds for transfers between spouses. Estate Planning: Proper structuring of accounts and assets can play a crucial role in estate planning and minimizing taxes. Recommendations Consult a Financial Advisor: Given the complexities of inheritance laws and tax regulations, it's advisable to consult with a financial or legal professional who can provide personalized advice based on your circumstances. Explore Account Options: If joint accounts are important for your investment strategy and estate planning, consider platforms like Interactive Brokers that offer such options. Review Terms and Conditions: Ensure you fully understand the implications of account types offered by any brokerage, including how assets are managed and transferred. Cheers
I love and use XTB, very very cheap and powerful, for my dividend porfolio and PAC services I hope one day you will make a video about it and maybe discover some problems I dont find yet, thanks Andy
@@ZeEzTw trading 212 is a platform I don't use so I just follow Kai video to learn about it, meanwhile I decided to use XTB 3 years ago so far for the customer service and low fees. For example I put 500 or 1000 euros to my card, and pay 1 euro to charge and then send the amount to xtb without any other expense eich is really great. If I want to withdraw money from my portfolio, I don't pay nothing if more than 100 euros.
@@ZeEzTw XTB has a very good customer service, and has low costs of operations, at least the costs I can see during withdrwals and deposits. For example, If I charge my Postal Pre-Paid card, called Postepay, with 500, 1000 euros or more, I only pay 1 euro to the postal service. One the money is in the card, I put the money to XTB account for free. So, 1000 euros costs me 1 euro, nothing more.I dont pay nothing if Iwithdraw at least 100 euros from my XTB portfolio to my bank again. So, its very cheap, I'm using it for dividends strategies and PAC
It is a great broker indeed, though for beginner, many find it too overwhelming and may prefer a simpler interface, automate their investments via T212 pies which are great and then be done with it. If you want more, yes, IBKR is fantastic. Cheers
Hey Kai.. Been investing in Trading 212 for two months now. My stocks are very good (Vanguard S&P, Apple, Amazon, etc..) I know it's early, but I don't see a tangible increase in my portfolio. Is there some sort of a reset in the market?
Hi mate, I know, last few weeks have been quite flat in the market, but that's normal, just keep on adding to your positions, you will benefit from the increases later on. Also, summer, generally is a bit calmer for the markets. End of year should be good 🤞
Hi and absolutly 'smaller European investors' can still benefit from investing in American stocks, but there are a few important factors to consider: Fees: Depending on your broker, you might face higher transaction costs when buying U.S. stocks compared to local European stocks. Look for brokers that offer competitive pricing on U.S. equities such as Interactive Brokers, or even commission-free options like Trading 212, Lightyear or eToro. Currency Risk: Since U.S. stocks are traded in dollars, fluctuations in the exchange rate can impact your returns. A weakening dollar could boost your returns, but a strengthening dollar could have the opposite effect. Withholding Taxes: Dividends from U.S. stocks are subject to a 15-30% withholding tax for non-U.S. residents, depending on whether your country has a tax treaty with the U.S. However, you can usually reclaim some of this via tax treaties, but it's a hassle. Diversification: The U.S. stock market offers access to global-leading companies that may not be available in your local market, so exposure to American stocks can enhance your portfolio’s growth potential. The U.S. market has a strong history of long-term returns. ETFs as an Alternative: If direct stock picking seems tricky, European-based ETFs that track U.S. indices can reduce some fees and tax burdens while still giving you broad exposure. In short, fees and taxes can add friction, but if you find the right broker and are aware of tax implications, investing in U.S. stocks can still be a worthwhile move for 'smaller European investors', especially for long-term growth. Cheers
HI Kai, as an EU citizen and taxpayer what are the limits I can recover should any of the 2 go bust? Well done once again for your video! highly enjoyable :)
Thanks for the positive feedback🙌 To answer your question about protection limits if Trading 212 or Interactive Brokers go bust: Trading 212: It’s regulated in the UK by the Financial Conduct Authority (FCA) and your investments are covered by the Financial Services Compensation Scheme (FSCS). This means you’re protected up to £85,000 in the event of the firm going bust. Interactive Brokers: For European clients, Interactive Brokers uses an EU-based entity, usually Interactive Brokers Ireland. Your investments are covered by the Investor Compensation Scheme of Ireland (ICCL), which protects up to €20,000. In both cases, the compensation applies to issues with the broker itself, not losses from market fluctuations. This applies to cash generally. Your stocks or ETF would simply be moved to a new broker, as they are kept in segregated accounts 👌 Cheers
@@SmartMoneywithKai Thanks a lot for your detailed yet simple reply! Really sheds an important light on the potential risks for beginner investors like myself.
Maybe it's an idea to share more about the risks of Nexo, its future, and the ways to earn income through it. There’s not much information about Nexo on RUclips, and I know you've been using Nexo for a while. Are there better alternatives that could be used?
trading 212 says the chat is 24/7 thats a LIE 100% its saturday here in australia ive been on chat all day nothing i types LIVE CHAT, waiting for chat for 6 hours, its a joke
@@SmartMoneywithKai how did you go withdrawing money from trading 212 when it was large sum say US$10,000+ did they want extra ID and extra checks to make life more difficult or was it pretty easy even trying to take out large sums back to your bank account?
Neither is great, but here’s the deal: Interactive Brokers looks better on paper, it’s got the tools, the features, the works. The catch? They’ll lock you out of trading the assets and instruments you want because you don't have the necessary permissions, putting limits on your freedom that other platforms don’t. And then there’s Trading 212, an Orwellian nightmare. They’ll block you from accessing your own money, lock you out of your account, and leave you high and dry with losses piling up. Hard pass on both.
🟢 INTERACTIVE BROKERS - Where I hold majority of my investments
smartmoneywithkai.com/ibkr
🟢 TRADING 212 - Get a free share worth up to €100
smartmoneywithkai.com/trading212
im on trading 212 im in australia and i wanna buy some SWISS shares in swiss francs but on my account i can only change AUD to either US euros pounds not swiss francs so that means ill never be able to buy swiss shares in swiss francs right?
with trading 121, if you wanna withdraw a large sum say over US$10,000- US$20,000 is it quick and easy or do they want more verification? like another form of ID or another self of you with a BILL showing your name and address or not?
@@petejames1326 Hi Pete, I had no issues doing that and nobody asked for anything. It was $18K 👌
@@petejames1326 Strange, you could convert AUD to USD and then USD to CHF that should work if you really wanted to buy it in CHF, but you can also buy some Swiss shares in USD or EUR if I am not mistaken 👌
Bert informative and Clear
Much appreciated 🙌
Hey Kai...I find all your videos very informative & in depth. You really do your research & I trust & appreciate your opinions & advice:) My only gripe, is you speak a little too quickly. My advice would be, slow it down a little & take some breaths & pauses during your lessons. Your relentless pace gives me anxiety of sort. I say this with all due respect & think you are a great guy!🙏
Hi mate, really appreciate your kind words 🙌 And I agree, I sometimes get to carried away and excited that I tend to speak too fast, so a good reminder to slow down, last thing I want is to give you anxiety with my speed 😉 Cheers mate 👋
Very helpful! Thank you very much for your time creating and sharing this video, Kai :)
My pleasure Viktorija, very happy to hear that you found it useful 🙌
Excelent video Kai very detailed, great job!!
Thanks a million Vidhal 🙏
Thank you for comparing my two favorite brokers! I also use both of them, Trading 212 is overall the best, I have to agree.
That's awesome to hear that 🙏
Hi Kai, just to let you know that when you invest through Trading 212 actually you invest through IBKR.
From Trading 212 FAQ:
Where are my shares held?
Your shares are held in a pooled account at Interactive Brokers, which is commonly known as an omnibus account.
Pooled account means if t212 goes bust, it goes locked, probably wont see your money, or it will be a long litigation until everyone gets paid out. IBKR everything in your name. Even money managers, funds use ibkr, with their 50+mil portfolios. IBKR is hands down best broker. In addition, they offer the best interest rates to borrow against your portfolio. In usa its like 5-6%, even cheaper than heloc (borrowing against your property). Car loans are probably 9%. Want to buy a car, borrow vs your portfolio with 1 click, and you got money, no credit check nothing. Best thing, if you have your portfolio via Swiss IBKR, you can borrow... are you ready? for 1.7-2.4%. Basically never sell your stocks so no capital gains etc, and just borrow against portfolio. Thats how rich pay no tax (borrowing vs their stocks, or vs stocks of their company- elon musk, bezos).
Thanks for the comment and for pointing that out. Actually, it's a bit more nuanced. While Trading 212 does use Interactive Brokers (IBKR) to hold shares in a pooled/omnibus account for certain markets, this doesn’t mean you’re directly investing through IBKR. You're still investing via Trading 212, which acts as your broker. They simply use IBKR as a custodian to hold your shares.
So, while your shares are held at IBKR, Trading 212 remains the platform you're using to make investments.
Hope that clears things up. Cheers
Thanks for sharing your insights. There are a few points worth clarifying.
Pooled Account (Omnibus Account): Yes, Trading 212 uses an omnibus account at Interactive Brokers to hold your shares, which means they are pooled together. However, this doesn’t mean you’d automatically lose your money if Trading 212 goes bust. Under UK and EU regulations, your investments are protected separately from the broker’s assets. In the UK, the FSCS protects up to £85,000, so while there might be some delays, you wouldn't necessarily lose everything.
IBKR: It's true that IBKR offers individual accounts, and for high-net-worth individuals, it provides great flexibility with margin loans, often at lower interest rates than traditional lending options. However, not all investors need this level of service. Trading 212, with its simplicity and commission-free structure, is a better fit for smaller investors who may not require IBKR's advanced features.
Borrowing against your portfolio, as you mentioned, is a strategy used by wealthy investors to avoid capital gains tax, but it comes with risks. If your portfolio’s value drops significantly, you could face margin calls, which is something to consider carefully.
So while IBKR is fantastic for larger portfolios, Trading 212 still has its place for beginner or casual investors. Cheers
Ways to fund your account would be a useful part of the review. Especially for FX currencies. Currently, only Swift is offered by T212 in Australia, while IBKR can use Swift, IBAN, etc.
Great points to keep in mind for future videos, thank you 🙌
im in australia on t212, you can deposit using bank account and apple pay and instant transfer as well cant you?
Hey Kai, thank you for the video and information. Which Broker offers better Protection? Also, is DRS possible with both of them?
Hi and my pleasure. Both are very secure and well protected, though I would give the edge to IBKR. As for DRS, T212 does not offer it for now, IBKR does 👌 Cheers
Agree about IB, not as user-friendly as Trading 212, and I dislike their commissions, they show me a $5.28 commission for 1 S&P 500 etf for $13 😂
Oh wow, that's crazy high very strange. Try tiered pricing, should be cheaper 👌
My commission is 1.25 euros.
Hey Kai, I think you committed a mistake on the fees section for stocks of IBKR. The countries breakdown refers to the stock exchange where the stock is listed, and not to residency of the investor. Am I correct?
Thanks Luca for pointing this out and you are absolutely correct, should have clarified that more 👌 Cheers
Hey, can you do a video regarding curve card and whether it is still worth it ?? and also a personal opinion if you use it
Hi and good idea, maybe time for an updated video on the card, but long story short, I don't use it anymore 😉
Any thoughts on Saxo Bank?
Hi, I never tried them, but just had a look and saw they charge annual custody fee which I really don't like.
Hey Kai. Great video as always.
You mentioned that you live between 2-3 countries, how does that work in terms of investment? Do you simply mean that you can access you IBKR account while travelling or you meant that you have to constantly adjust your tax location within the broker?
Also how do you deal with taxes? Do you your capital gains taxes in the country of your choice or in the country where you spent most time of the year?
Hi and thanks a lot. Good question, depends on each country, but generally if you stay somewhere more than 6 months, you will need to pay taxes there. In my case I live majority of the year in the UAE hence do not pay any taxes 🙏
Thanks for the video Kai! Solid info as usual!
Q for you, since you have experience with both brokers for years now, with which broker would you prefer to buy US Treasury bills (1-2 month maturity)? It's there any insight or advice you can share when comparing the two for buying this specific investment asset?
Thanks again a appreciate you
Thanks for the kind words. Glad you found the info helpful.
When it comes to buying US Treasury bills (T-bills) with a short maturity (1-2 months), both brokers have their pros, but here’s a breakdown:
Interactive Brokers (IBKR): IBKR is generally better suited for fixed-income securities like T-bills. They have a broader offering in terms of US government bonds and T-bills, and their fees are usually low, especially if you're buying directly in the bond market. IBKR also provides detailed research and tools that can be helpful when selecting specific Treasury investments. Their platform is advanced, but for T-bills, it's relatively straightforward once you get used to it.
Trading 212: Trading 212, while excellent for stock and ETF trading, isn’t primarily focused on fixed-income securities like T-bills. It may not provide the same range or depth of offerings as IBKR. You may also face limitations or slightly higher fees for this type of asset.
My Preference: For something specific like short-term T-bills, I’d lean towards IBKR. The range of offerings, lower fees, and overall access to US government securities make it the better option. Plus, they have better support for fixed-income investments overall.
One tip: Keep an eye on transaction fees and minimum investment amounts on either platform, especially for short-term T-bills. Even small fees can affect your return on such short maturities.
Hope that helps. Cheers
I use Trading212 for stock. but it has no option trading, such a bummer
Hi 👋 You're right, Trading 212 is great for stocks and ETFs, but the lack of options trading can be a downside for some. If you're into options, platforms like Interactive Brokers or eToro could be worth exploring-they offer a wider range of trading tools and instruments. It’s all about finding the right fit for your strategy. Cheers
what about portfolio transfers? are they working now from T212 ro IBKR?
wow did know know You live in Lithuania! linkejimai
Labas Ignas, sadly not, IBKR seems to be fine with it, but T212 does not enable them yet so fingers crossed it'll be added eventually. You could transfer T212 -> XTB -> IBKR but would be slower and a bit more expensive I guess. For now I just keep it in both. Cheers
😉🇱🇹🙌
Which should I choose for long term investing? I am still a student, and thought that the best move would be to keep investing in 212 until i complete my studies (3 years) so i can avoid the 1.25 eur fee of ibkr. Since I am only investing 100 eur a month, thats still 1.25%, which is significant when it comes to low budgets. But, I don't trust them as much as IBKR
Hi, both are solid options. If you don't feel comfortable with T212 don't use them. No need to stress about your money. If you do, like I and many others do to feel comfortable, then yes, much cheaper especially for smaller amounts. I would go with T212 in your case 👌
Hi Kai,
How are you transferring money from UAE to Trading212? Are they causing you any issues for moving to another country? If one were to arrange transfers from UAE to Trading212, is it as simple as AED transfers like it is now with IBKR which had started to accept AED bank transfers. Your research and input in this is highly appreciated
Hi, for now I haven't send money from UAE to T212 but should be straightforward transfer. I would convert my AED to USD locally and then send USD as they don't support AED yet. You can also easily relocate your T212 to UAE which should make it easier 👌
Should I transfer money from my bank account to revolut and from revolut to trade212? Or I can direct deposit from my bank account to trade212
Hi and yes, you can direct deposit to Trading 212 from your bank, no need for Revolut if you don't want to.
Kai, thank you for this video. Just subscribed to Trading 212 through your link. Unfortunately they do not allow joint accounts, not sure about Interactive Brokers. This is an issue if one of the spouses passes away bec of inheritance tax. I would appreciate your thoughts.
Hello! 😊
Thank you for sharing your experience with Trading 212 and for subscribing through the link. I understand that the lack of joint account options can be a concern, especially when considering inheritance tax implications for spouses.
Trading 212 and Joint Accounts
Trading 212 currently does not offer joint accounts. Their platform is primarily designed for individual investors, which might limit options for couples looking to manage investments together.
Interactive Brokers and Joint Accounts
Interactive Brokers, however, does offer joint accounts. They provide various account types, including joint tenant accounts with rights of survivorship, which could address your concerns about asset transfer in the event of a spouse's passing.
Inheritance Tax Considerations
When one spouse passes away, the way assets are held can significantly impact inheritance tax and the ease of transferring those assets. Here are some points to consider:
Joint Accounts Benefits: Assets in joint accounts often pass directly to the surviving spouse without going through probate, which can simplify the process and potentially reduce tax liabilities.
Tax Thresholds and Exemptions: Many jurisdictions offer inheritance tax exemptions or higher thresholds for transfers between spouses.
Estate Planning: Proper structuring of accounts and assets can play a crucial role in estate planning and minimizing taxes.
Recommendations
Consult a Financial Advisor: Given the complexities of inheritance laws and tax regulations, it's advisable to consult with a financial or legal professional who can provide personalized advice based on your circumstances.
Explore Account Options: If joint accounts are important for your investment strategy and estate planning, consider platforms like Interactive Brokers that offer such options.
Review Terms and Conditions: Ensure you fully understand the implications of account types offered by any brokerage, including how assets are managed and transferred. Cheers
I love and use XTB, very very cheap and powerful, for my dividend porfolio and PAC services I hope one day you will make a video about it and maybe discover some problems I dont find yet, thanks Andy
I'm really curious, and I was between the choice of Tranding 212 and XTB. What made you choose xtb instead of tranding 212?
@@ZeEzTw trading 212 is a platform I don't use so I just follow Kai video to learn about it, meanwhile I decided to use XTB 3 years ago so far for the customer service and low fees. For example I put 500 or 1000 euros to my card, and pay 1 euro to charge and then send the amount to xtb without any other expense eich is really great. If I want to withdraw money from my portfolio, I don't pay nothing if more than 100 euros.
@@ZeEzTw XTB
has a very good customer service, and has low costs of operations, at least the costs I can see during withdrwals and deposits.
For example, If I charge my Postal Pre-Paid card, called Postepay, with 500, 1000 euros or more, I only pay 1 euro to the postal service. One the money is in the card, I put the money to XTB account for free. So, 1000 euros costs me 1 euro, nothing more.I dont pay nothing if Iwithdraw at least 100 euros from my XTB portfolio to my bank again.
So, its very cheap, I'm using it for dividends strategies and PAC
Hi Andy, thanks for sharing, heard good things about XTB, should maybe make a review about them 👌 Cheers
@@SmartMoneywithKai all the best, see you in Rome 😊
Should have more detail about the spread
Hi good point though I could not find exact numbers on that. If I do in the future will certainly include it 👌
IBKR is just simply the better platform.
It is a great broker indeed, though for beginner, many find it too overwhelming and may prefer a simpler interface, automate their investments via T212 pies which are great and then be done with it. If you want more, yes, IBKR is fantastic. Cheers
Hey Kai..
Been investing in Trading 212 for two months now. My stocks are very good (Vanguard S&P, Apple, Amazon, etc..)
I know it's early, but I don't see a tangible increase in my portfolio. Is there some sort of a reset in the market?
August was very hard, with few drops, and the same may be in the next 8 weeks, so just wait more time
Hi mate, I know, last few weeks have been quite flat in the market, but that's normal, just keep on adding to your positions, you will benefit from the increases later on. Also, summer, generally is a bit calmer for the markets. End of year should be good 🤞
Should smaller European investors invest in American stocks or the fees and taxes are crushing
Hi and absolutly 'smaller European investors' can still benefit from investing in American stocks, but there are a few important factors to consider:
Fees: Depending on your broker, you might face higher transaction costs when buying U.S. stocks compared to local European stocks. Look for brokers that offer competitive pricing on U.S. equities such as Interactive Brokers, or even commission-free options like Trading 212, Lightyear or eToro.
Currency Risk: Since U.S. stocks are traded in dollars, fluctuations in the exchange rate can impact your returns. A weakening dollar could boost your returns, but a strengthening dollar could have the opposite effect.
Withholding Taxes: Dividends from U.S. stocks are subject to a 15-30% withholding tax for non-U.S. residents, depending on whether your country has a tax treaty with the U.S. However, you can usually reclaim some of this via tax treaties, but it's a hassle.
Diversification: The U.S. stock market offers access to global-leading companies that may not be available in your local market, so exposure to American stocks can enhance your portfolio’s growth potential. The U.S. market has a strong history of long-term returns.
ETFs as an Alternative: If direct stock picking seems tricky, European-based ETFs that track U.S. indices can reduce some fees and tax burdens while still giving you broad exposure.
In short, fees and taxes can add friction, but if you find the right broker and are aware of tax implications, investing in U.S. stocks can still be a worthwhile move for 'smaller European investors', especially for long-term growth. Cheers
HI Kai, as an EU citizen and taxpayer what are the limits I can recover should any of the 2 go bust?
Well done once again for your video! highly enjoyable :)
Thanks for the positive feedback🙌 To answer your question about protection limits if Trading 212 or Interactive Brokers go bust:
Trading 212: It’s regulated in the UK by the Financial Conduct Authority (FCA) and your investments are covered by the Financial Services Compensation Scheme (FSCS). This means you’re protected up to £85,000 in the event of the firm going bust.
Interactive Brokers: For European clients, Interactive Brokers uses an EU-based entity, usually Interactive Brokers Ireland. Your investments are covered by the Investor Compensation Scheme of Ireland (ICCL), which protects up to €20,000.
In both cases, the compensation applies to issues with the broker itself, not losses from market fluctuations. This applies to cash generally. Your stocks or ETF would simply be moved to a new broker, as they are kept in segregated accounts 👌 Cheers
@@SmartMoneywithKai Thanks a lot for your detailed yet simple reply! Really sheds an important light on the potential risks for beginner investors like myself.
Next nexo💙
Good idea 😉 Nexo vs which exchange you had in mind?
Maybe it's an idea to share more about the risks of Nexo, its future, and the ways to earn income through it. There’s not much information about Nexo on RUclips, and I know you've been using Nexo for a while. Are there better alternatives that could be used?
Great point, will keep that in mind for a future video 👌 Cheers
trading 212 says the chat is 24/7 thats a LIE 100% its saturday here in australia ive been on chat all day nothing i types LIVE CHAT, waiting for chat for 6 hours, its a joke
Hi mate, sorry to hear that, hope it'll get sorted for you soon.
@@SmartMoneywithKai how did you go withdrawing money from trading 212 when it was large sum say US$10,000+ did they want extra ID and extra checks to make life more difficult or was it pretty easy even trying to take out large sums back to your bank account?
@@petejames1326 Hi mate, yea, no issues for a larger amount I think it was around 18K, all smoothly 👌
First 🥳
Wow, that was fast 😉 Let's go ⚡️
i di not get a free share..
Hi, on Trading 212 you will get it as soon as you verify your account and fund it 👌
Neither is great, but here’s the deal: Interactive Brokers looks better on paper, it’s got the tools, the features, the works. The catch? They’ll lock you out of trading the assets and instruments you want because you don't have the necessary permissions, putting limits on your freedom that other platforms don’t. And then there’s Trading 212, an Orwellian nightmare. They’ll block you from accessing your own money, lock you out of your account, and leave you high and dry with losses piling up. Hard pass on both.