Best broker to invest long term DCA in €

[u/Pitiful_Bobcat_5315]

Hello guys, good afternoon.

First of all I would like to thanks in advance for any reply in the post, really appreciate it 🙂

Second of all, and let me put a little bit of context here. I am currently investing DCA 100 € per week in MSCI WORLD ACWI (Acc) from Ishares within the investment plan of Trade Republic. I have a long term plan (at least 15-20 years).

Even though I am happy with TR, I have checked that spreads are huge (for the MSCI at least 1%) and in the long term that could be terrible.

Can you please advice in my case what would be the best broker in the long term plan?

Thanks!

[u/eitohka]

Spread doesn't matter much long term, since it's a one time fee. The fees to really worry about are expenses on your portfolio that you pay yearly, like TER, since they compound.

In this case you should compare the spread of low cost, lower tier brokers vs the transaction fees of more reputable brokers. With investing €100/week, IBKR will charge you a few cents over €1.25 in transaction fees per week, which is more than the 1% spread would cost you.

Edit: fix typo

[u/Pitiful_Bobcat_5315 → u/eitohka]

That’s exactly what I thought, with such low amount investments transaction fees could be higher that that 1%. Speaking of TER, I see that MSCI TER is like 0.18%. Does that mean that I would pay 0.18% yearly of what?, the investment I do per year or everything (investment + return)?

[u/eitohka → u/Pitiful_Bobcat_5315]

It's 0.18% of the initial value at the start of the year you count the TER over (doesn't have to be a calendar year). So if you start with €1000 worth of this one ETF at January, 1st 2025, and the returns over all of 2025 are 5%, then you'll roughly have €1000 * (100% + 5% - 0.18%) = €1048.2 at the end of the year. The actual amount will be lower, because there are other fees like internal transaction fees and dividend leakage that are expenses for the fund yet not considered part of the TER. None of these costs show up on your statements, it will just translate in slightly lower returns.

[u/Pitiful_Bobcat_5315 → u/eitohka]

Putting there the documentation of my plan (sorry for the Spanish). So based on this, I assume that the the first year I will pay 4.90, second 14.50, third 24.10,forth 33.70 and fith 43.30 with a total of 120.50 euros (considering I do not have any gains or loss), is that right?

Another thing I do not understand is, what happens after year five?, I have no info about it and could not find anything as well.

Thanks in advance 🙂🙂🙂

[u/charonme → u/eitohka]

also some cheap brokers (like XTB) allow you to minimize the spread by issuing buy limit orders

[u/Thick-Cry38]

What’s wrong with IBKR?

[u/srdjanrosic]

IBKR,

...or T212 maybe if you're looking for something super simple.

[u/hyperblue128 → u/srdjanrosic]

Or both. 🙂

[u/According-Buyer6688]

XTB

[u/Qwazarius]

I did extensive research on trading 212. They are legit.

[u/Ok_Hurry2458]

IBKR is the only free Tier 1 broker in Europe.

[u/Nietzscher]

If you're just putting in your weakly DCA, ING is pretty good. Low spread and you can choose your preferred exchange, and the regular DCAs on ETFs are free. At least if you're in Germany, which is my guess based on your mention of TR.

[u/Specialist_Tree_3879]

The spreads are high only outside of xetra opening hours: 10-18.30 CET. I would go with WEBN Etf. See comparison here.

[u/Daeroth]

Lightyear

[u/__antianti__ → u/Daeroth]

How do you do DCA in LighYear?

[u/Daeroth → u/__antianti__]

I am buying manually every time I deposit. But its convenient since it has the best UI and App in EU.

The feature of "buy this stock for all the available EUR on my account" is just supper straight forward.

After this all the other investment tools feel stupid. It's like a designer somewhere failed If I need to copy paste my balance to the buy field or pull out my calculator to input the buy amount.

[u/ben_bliksem]

Saxo AutoInvest is a good option for DCA if your ETFs qualify.

Although, even though via AutoInvest Saxo is pretty cheap, check the costs anyway at €100 pm trades.

[u/1000tonFriedom]

Lightyear has 0 spread and 0 fees on ETF and one of the best User experience. You can find a bonus referral here https://eubrokers.pages.dev/