Index Investing Options In The Netherlands: The Intermediate Results

The results of my research up till now:

THE WINNERS:

Meesman 0,3%-0,6% (bonds, both global 0,6% and European 0,3%) 0,5% (stocks, both global and European) 0,65% (emerging market stocks) per year, only deals with Vanguard and follows the MSCI-index. Oh, and the membership fee is €25 a year. Super cheap and super easy, you allow them to automatically withdraw a certain amount every month. Downside is that they only offer 5 Vanguard funds (they recently added one, so there’s hope for more!). They’re trading in euros, so the whole dollar/euro-thing is off the table. They reinvest automatically for you so you only need to work on your asset allocation once a year. This is the broker I’ve been with for almost two years now and I am very satisfied with their level of service. Whenever I phone them or send them an email I feel I am taken seriously although I hardly know anything about investing. Also: Mr. Meesman himself answers the phone and the emails. Small broker, has about 40 million euros in its care and doesn’t waste any money on fancy business things like expensive buildings, advertisements (they don’t advertise, spread the word people), expensive furniture and what not. I hereby declare Meesman THE Mustachian Dutch Broker! His business partner wrote the first Dutch book about index investing. Cool guys!

AND (It’s still a maybe)

SNS Fundcoach €59 membership fee per year, 0,29% depository fees per year for Vanguard funds traded in euros, up to 0,5% depository fees per year for Vanguard funds traded in dollars, Vanguard transaction fees 0,5%, in case the funds are not sold in euros 0,15% will be added to these fees totaling 0,65%. This is the DIY version. I am going to shoot Mr. Collins an email some time next week and present the different options I have with this company and compare that with Meesman. Meesman still sounds like the better deal.

One of my favourite Dutch PF bloggers also recommends Meesman and SNS Fundcoach. The article states that Vanguard set TER for the Dutch at 0,5%. So it is up to the broker how much they charge in extra fees.

THE DARK HORSE IN THE RACE:

Rabobank…still waiting for your phone call, ’cause I can’t grasp your tariff Sudoku. Vanguard told me Rabobank is the biggest broker for their products in The Netherlands. However, your fees do not look very promising…

THE LOSERS:

Binck €6,50 + 0,1% (min. €10 max. €150) per transaction, no other fees, offers lots of Vanguard funds (ETFs). However, this is only interesting if you’re throwing in a lot of money in one go.

Index People 0,5% per year excluding tax and depository fees (0,16%), not the Vanguard funds I’m after. This is a no for me.

Ohpen 0,5% per year PLUS 0,5% transaction fees. That’s TOO expensive!

Brand New Day 0,5% per year PLUS 0,59% depository fees. Argh!

Alex €7,50 per transaction + 0,15%, more expensive than Binck, so you’re dismissed!

MoneYou only follows the AEX and uses a weird system. No thanks.

THE ABSOLUTE LOSER:

Saxobank will cost €12 +0,1% per transaction, yikes!

Love,

Mrs EconoWiser

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8 thoughts on “Index Investing Options In The Netherlands: The Intermediate Results

  1. Zakelijk Bezuiniger

    Thanks for the overview. I already have an account with Binckbank (never used it till now), but you are right when you say that they are too expensive when the minimum amount you pay in fees is 10 euros.

    Reply
  2. spaarolifantje

    I see Meesman also asks depository fees of 0.5% on their global stock index fund; plus 0.5% annual costs.

    Brand New Day is 0.5% depository fees and 0.5% annual costs for obligations, 0.59% for their global stock index fund. So yeah, 0.09% more. But no annual fees.

    To make the annual fee of Meesman (of 25 euros) less than 0.09%, you need to put in at least 2778 euros. I’m not there yet with my retirement investments.

    Reply
      1. zeldesse

        No, Spaarolifantje is right, he or she is just calculating the annual flat fee to a percentage to be able to compare with Brand New Day. If you have a large amount of money you want to invest with Meesman, percentagewise it will be cheaper. But if you only have f.e. 100 euros to invest, 25 euros annual is a big percentage.

    1. econowiser Post author

      The husband and myself are now very confused. We’re going to do more research on the topic. The TER is very important and it seems there are no regulations in The Netherlands that forces brokers to specify that percentage which makes things extremeley difficult to compare.

      Reply
  3. zeldesse

    You didn’t mention that Alex also charges 0,05% service fee over the total invested sum per 3 months.

    Reply
  4. Mark

    Hello. I am and Expat looking at starting to index investing in Netherlands and found this article interesting. I am considering opening a TD Direct Investing account (I have several TD accounts back in Canada) and was going to buy the Vanguard and other low cost index funds via TD Direct every month (~5000€/Mo). I am trying to compare the fees. For example Vanguard USA (VUSA) and Vangaurd EU (VEUR) are 0.09% and 0.15% MERs. So lower than the Meesman funds that use Vanguard. The transaction fees vary but <5000 € per trade is 28€. I am trying to compare this to Meesman of 0.25% for each transaction (which might be lower than TD) but the MERs are higher. Anyone have an idea which approach is cheaper overall? I think in the long run lower MERs are better as long as you don't trade too frequently. I am interested in your thoughts on this? Thanks and great job spreading the low index philosophy. I find very few people in NL have any investments outside of their savings account. Does everyone live off their Dutch pension when they retire? Mark bij Amsterdam.

    Reply

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