With interest rates on savings accounts in Ireland so low – some people are probably looking into alternative ways of investing their money.
Buying shares is one way of potentially earning a good return from an increase in their value and also from dividends.
Investing involves risk of loss, shares can fall in value as well as rise. So it is not recommended to invest money that you cannot afford to lose.
If you want to guarantee that you will not lose any of your money, then the stock market is not for you .
A share is a small part of a company that you can buy for a set price. When you buy shares, you become a shareholder in that company.
Share prices can move up or down in value, depending on the performance of the stock market, the current profitability of the company and the expected future profitability or potential of the company.
The aim is to invest in shares that increase in value over time – but it involves the risk of loss.
ETFs (Exchange Traded Funds)
ETFs are another way of investing in a portfolio of shares – read more about Investing in ETFs here. The stockbrokers listed below allow you to buy and sell various ETFs as well as shares in single companies.
Where to Buy Shares Online in Ireland
The cheapest way to buy shares is usually is to have an “execution-only” account, where you can buy or sell shares or ETFs that you have chosen yourself without getting any advice from a broker.
Listed below is a comparison of the share trading fees at some online brokers in Ireland. (Fees are for buying or selling shares / ETFs).
In our small comparison of share dealing and portfolio management costs – DEGIRO came out as the cheapest. In one example they were 78 times cheaper than the most expensive option.
We have not included stamp duty in the comparison because it will be the same for all providers.
Buying Shares in Ireland - a Price Comparison
|Broker Name||Buy €1000 of Irish Shares||Buy €10,000 of Irish Shares||Buy €10000 shares on NYSE||Buy €1000 of shares|
London Stock Exchange
| Buy €10,000 Irish shares|
in 5 different companies
|Buy €10,000 Irish shares|
in 5 different companies
and keep for 5 years.
|Buy €10000 of Amazon shares
and keep for 5 years.
Details of Charges
DEGIRO is based in the Netherlands where it launched its online brokerage services in 2013. DEGIRO now operates in 18 European countries – including Ireland. DEGIRO was voted the Best Low-cost Stockbroker in 2017and 2018 by the InvestorsChronicle / Financial Times. They are regulated in the Netherlands and use EU passporting rules to allow it to operate across the single market.
Fees at DEGIRO
- Buy or Sell Irish shares : €2 + 0.058%
- Buy/Sell UK / European shares: €4 +0.058% capped at a maximum of €60
- Buy/Sell US shares : €0.50+USD 0.004 per share
- Annual fees – DEGIRO has an annual fee you for connecting you to exchanges. This fee is currently just €2.50 per exchange per year but there is no fee for the Irish exchange for Irish residents.
- Foreign exchange fees – Manual €10 plus 0.02% OR auto 0.1%
So that means if you bought €10,000 worth of Irish shares in 5 different companies (total of €50,000) and held them with DEGIRO for 5 years and bought no more – they would charge you €0.00 in maintenance fees and €39 in commission. a total of €39 .
Sign up to DEGIRO here.
Interactive Investors is based in London and regulated by the UK Financial Conduct Authority. In the UK Interactive Investors is the second largest retail stockbroker, based on the volume of customer transactions.
Fees at Interactive Investors
- €20 per trade up to €100k
- €52 per trade 100k to 500k then €80 per trade over €500k
- Transaction fees reduced by €5 if you trade 10 or more times in the preceding 3 months.
- Foreign exchange fees from 0.25% to 1.5%
- Maintenance Fees : €30 fee every 6 months if you don’t trade and have less than €5k in portfolio
So that means if you bought €10,000 worth of Irish shares in 5 different companies(total €50,000) and held them with Interactive Investors for 5 years and bought no more – they would charge you no maintenance fees and €100 in commission – a total of €100 .
Sign up to Interactive Investors here
Established in 1926, the Davy Group is based in Dublin and is regulated by the Central Bank of Ireland. They managing €14bn+ of client assets, with offices in Dublin, Cork, Galway, Belfast, London and Luxembourg.
Fees at Davy :
- Trading fees of 0.5% – Minimum €14.99.
- €25 Foreign Transaction Settlement Charge per trade for each trade of shares listed outside Ireland and UK .
- Foreign exchange fees max 1%.
- Minimum Fee per trade for shares listed outside Ireland and UK 0.06%.
- Execution Service Fee of €50 per quarter less any commissions paid that quarter.
So that means if you bought €10,000 worth of Irish shares in 5 different companies (total of €50,000) and held them with Davy for 5 years and bought no more – they would charge you €950 in maintenance fees and €250 in commission. a total of €1200 !
Signup at Davy Select here
The firm Goodbody has been involved in the Dubin Stock Exchange since 1874. Goodbody Stockbrokers was acquired by Fexco in 2011. They are regulated by the Central Bank of Ireland .
Fees at Goodbody
- Charge of 1% on the first €25k of a transaction – then 0.5%. ( Minimum fee €25.)
- Also – a charge of €25 is made on all US and European trades.
- Maintenance Fee €100 year plus VAT
- Foreign exchange fees – up to 1.25%
So that means if you bought €10,000 worth of Irish shares in 5 different companies (total €50,000) and held them with Goodbody for 5 years and bought no more – they would charge you €500 in maintenance fees and €500 in commission. a total of €1000.
Sign up at Goodbody here
Stamp duty is chargeable on the purchase of all Irish and UK shares. The rates are: 1% on Irish Shares and 0.5% on UK shares. This will be the same for all brokers.
Taxation on Shares
Capital Gains Tax (CGT) – if you make a gain on a share trade, the state is going to be looking for 33% of it ( The first €1,270 of taxable gains in a tax year are exempt from CGT ). (See here for Information about Taxation of ETFs in Ireland)
Tax on Dividends
If your shareholding gets paid a dividend, the state is going to look for some of that too.
Dividends paid by Irish companies
Irish companies will always deduct 20% tax at source from the gross dividend. If you are liable for tax at a higher rate you will pay tax on the gross dividend at the higher tax rate and be given a credit for the 20% tax already deducted.
PRSI and the USC are also due on the gross dividend and will be collected through the Self Assessment system if applicable.
Dividends paid by UK companies
You pay Irish tax on the net dividend received by you. No credit is allowed for any UK tax already deducted from the dividend payment. You must convert the net payment received to Euros and declare it on your Irish tax return form.