Author Topic: banks in Norway for trading  (Read 1348 times)

fabyab

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banks in Norway for trading
« on: May 30, 2019, 05:22:31 AM »
Can anyone tell me which banks in Norway have favorable rates, especially for trading? My friend there is embarking on Moustachianism and I'm trying to help him get started... I'm grateful for any advice.

habanero

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Re: banks in Norway for trading
« Reply #1 on: May 30, 2019, 06:43:49 AM »
Trading as in trading single-stocks? Most (all?) Norwegian equity brokers/banks offer access to local and international markets and transaction fees are quite low - but as it is generally a fixed-sum-minium they can take a chunk out of very small trades. For index funds the going rate is management fees of around 0.20% - regardless if local, regional or global. Buying and selling index funds is generally free. There are ETFs on the local market and you can prob buy any listed ETF worldwide quite easily.

He should first read up on Aksjesparekonto (AKS) (deferred tax-account for holding equities and/or mutual funds) and probably also IPS (individual retirement savings with delayed tax).

A very central point is that the AKS only offers deferred tax for EU/EEC equities. You can however buy say an index fund investing only in the US market and put it in there, but you can't do US ETFs for example. As of this year there is also deferred tax on dividends. You cannot put bonds or bond funds in there. Anything you put in (aka purchase price) you can take out tax-free at any time, you only incur tax (or tax deductions) for profit (or loss). By law cash sitting in the account earns 0% interest.

gaja

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Re: banks in Norway for trading
« Reply #2 on: May 30, 2019, 06:45:07 AM »
This overview is quite good: https://www.smartepenger.no/106-markedsoversikt/2072-prisoversikt-aksjemeglere-pa-nett
Finansportalen is a public service to compare banks and other financial services: https://www.finansportalen.no/

Nordnet is usually the cheapest trader (not a bank), and doesn't charge annual fees if you have more than 100 000 NOK in single stocks. KLP has some of the best index funds (including one with a high ethical profile), but again: not really a traditional bank.

Danske Bank probably has the cheapest mortgages if you are a union member (around 2%), and also has decent rates on savings accounts (1.5%).

Before starting to trade, your friend should get a "Aksjesparekonto" with the bank/supplier(s) he chooses. That way he can postpone paying taxes.

habanero

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Re: banks in Norway for trading
« Reply #3 on: May 30, 2019, 06:48:31 AM »
You might also want to inform him that Norway has tax on net wealth so the 4% rule doesn't quite apply...

gaja

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Re: banks in Norway for trading
« Reply #4 on: May 30, 2019, 06:48:49 AM »
He should first read up on Aksjesparekonto (AKS) (deferred tax-account for holding equities and/or mutual funds) and probably also IPS (individual retirement savings with delayed tax).

I agree about the AKS, but not necessarily the IPS. The tax benefits for the last one are not very good, and the regulations for pulling money out are incredibly strict.

If he is under 34 years old, he needs to save as much as possible in boligsparing for unge (BSU - house savings account for youth. Heavily tax advantaged, and very good interest rates).

habanero

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Re: banks in Norway for trading
« Reply #5 on: May 30, 2019, 06:54:27 AM »
Yes, I max out my IPS but that is because I'm 100% certain I won't need the money anytime soon.

And agree on the BSU as it offers a guaranteed return of 20% or whatever it is now due to the tax incentives.