Investing from Within Euro Area

[Redman]

I'd like to get my son investing for his pension on a monthly drip feed / world tracker / hold and forget basis. He's working in Belgium and wants to buy in Euros / build his pension pot in Euros. So far so good!

As I understand it, it matters not what you buy with / get paid in since the underlying investments are regional/global/etc; but does this also mean he can forget forex issues if he invests via a UK broker?

Indeed, from Belgium, is he actually able to use a (familiar) UK broker or provider eg HL or Vanguard? Or are they Sterling only / UK residents only?

He's already looked at EU-based / International brokers such as Interactive Brokers and DeGiro, and seems almost certain to avoid going through his local bank since their fees are horrendous.

I see various ETFs, OEICs and Funds listed as being Euro denominated and/or Ireland (or Deutsche Borse, or Paris or whatever) based. Does he simply have to stick with these? I'd also note, however, that the ETFs available via DeGiro are limited in scope and number: precious little access to Vanguard, for example.

Your advice on this appreciated: just need to get him going while being sensible about where he is putting his Euros since he is not a fan of UK investment-wise in the short to medium term at least.

Regards

[Hariseldon58]

There is an International and Expats board that might be more appropriate?

iShares and StateStreet have a huge range of ETFs and list them trading on main European exchanges in Euros, as well as Vanguard.

[Redman]

Oops - I've never scrolled down that far! Thanks. Have had a quick look through what's there, and there seems to be good cross- fertilisation if topics between this Sub Forum and that one. I'll keep a closer eye on both in future.

In terms of my question here, one helpful pointer is as follows:. For ETFs, don't worry too much about the base or accounting currency. ........ The base currency makes no difference to the performance............ Wherever possible try to invest in the listing that has the same currency as your cash. That way you will avoid an FX fee levied by the broker to convert your cash before buying ETF shares. Dividends will be paid in the base currency of the ETF by the way, not the listing currency. DEGIRO give you the option of leaving dividends in the currency or automatically converting to your main account currency, so it is up to you which to choose.

[Sobraon]

I use Fineco (large Italian bank with UK presence) which provides me with a Euro denominated debit card . I can buy/sell Stocks on the Euro bourses in Euros and keep the dividends, buying and selling currency in Euros. Regarding pensions I think they offer a product (not a SIPP) and they don't have ISAs. I expected some changes as a result of Brexit but nothing has happened.

[Redman]

Thanks - will consider this thread closed, and will take anything forward via the Expat Sub-Forum.

Moderator Message:
please go to viewtopic.php?p=382965#p382965 for further responses, this thread now locked, regards, dspp