I spent half the morning on the phone talking to brokers because I am still trying to compare the costs of investing with Vanguard here in The Netherlands. According to a new European directive the rules will be changed by the 1st of January 2014. The brokers will not receive a kick-back fee anymore and all the costs are going to be crystal clear for the customers. So all the costs that were previously hidden in the index trackers will be charged now.
This will probably mean that customers will pay a set price for every transaction fee, this will depend on the broker. Odds are this will range from €6 to €12 per transaction. There goes index investing on your own with only €100 a month to spend.
Some brokers are already playing by these new rules (Alex, Binck, Saxo) but some aren’t (SNS Fundcoach, Meesman) yet.
Then I phoned Brand New Day and they didn’t know anything about these new rules, so maybe it doesn’t affect index investing after all?
So, I am more confused than ever. Don’t know what to do. Does anybody else know?