Hi everyone, I’m 22 years old and I’d like to open a PEA with ETFs using DCA and I have a few questions.
To start, I was thinking of keeping it really simple and just going with an MSCI World ETF. Strategies with multiple ETFs can be interesting, but honestly I’d rather start simply than overcomplicate things from the beginning.
I’ve just seen stories going around about regulations concerning synthetic ETFs and the fact that some PEA-eligible ETFs still invest outside of Europe. I’m not really sure what’s actually planned regarding this or if it could be a problem in the long term.
And for the broker, I looked at Trade Republic which seems interesting in terms of fees, but I’ve also seen quite a few reviews about their customer service. I don’t know if that’s still current.
So if some of you have a PEA, I’d appreciate your feedback on:
the broker you chose and why
the fees you really need to pay attention to
starting with just a World ETF
and possibly what to think about the current situation regarding synthetic ETFs
The goal for now is mainly to get started and begin without overcomplicating my life.
And especially to know if a world ETF is good or not because I’ve also heard that it’s quite exposed to the US but I don’t know if a strategy with multiple ETFs is a good idea for beginners..
The Buy/Sell fees for ETFs on PEA are capped. Maybe no custody fees if that still exists…
I do World / Emerging. For beginners World is good, you have the ACWI alternative.
For me these are just theatrics, I don’t believe in a change at all. If you’re implying the risk related to swaps, it’s very low. But if you’re at that point, you should rather ask yourself if you’re really cut out for stock market investing. Because the risk of capital loss is real.
It’s likely that they’ll remove synthetic ETFs in the long term, it’s like euthanasia, or the energy plan for renewables when it comes from a decision from above at some point it ends up passing one way or another. That said for now that’s not the case.
Trade Republic was very annoying to contact, you had to work around the interface and the fact of being forced to connect to an app to contact them is also very frustrating. They claim it’s improved since then but I haven’t tried again since. Otherwise it’s good and I have a CTO (compte-titres ordinaire) on it, but this aspect doesn’t inspire confidence at all.
If you place an order for less than €500 per month, Fortuneo has an offer of one free order per month. For a single asset in a PEA (plan d’épargne en actions) that could work.
Thank you for your feedback! For now, I don’t know exactly which World ETF to choose yet, I’m currently researching that. I’ve seen that there are several that are eligible for the PEA and with different fees, but I’m not quite sure yet what criteria to use to differentiate them or which one would be most suitable for me.
For the broker, I’ll also look at the different options a bit
Thanks for your feedback! Yes, for Trade Republic it was precisely the customer service that made me hesitate a bit, so your feedback reassures me somewhat on that front.
For now, I’m mainly looking at which World ETF to choose. I’ve seen several that are PEA-eligible, but I’ll admit I don’t really know yet how to compare them or which one would be most suitable for my situation. I’m going to research that before getting started.
Okay, so Fortuneo might be interesting. That said, I get the impression that it’s not important to stress about finding the perfect broker among the major banks but rather to start as soon as possible. The problem is I don’t want to do just anything haha
They both have fees of 0.2% and since on PEA (Plan d’Épargne en Actions) you need to buy whole shares, they also have the advantage of having a low share price.