Author Topic: Which platform to use in Aus? eToro any good?  (Read 1920 times)

goindeep

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Which platform to use in Aus? eToro any good?
« on: October 03, 2022, 05:25:32 PM »
Hi folks, I am new here.
37M from Melbourne Aus.
As I say I am fairly new to MMM. As I read it, he basically recommends paying down all debt, except for the mortgage if is a long term thing, saving and investing the rest in Vanguard and similar indexes.
I had a question for fellow aussies about which platform to use.
I know that Vanguard has a website but I looked into eToro and signed up because I liked the fact that they offered indexes, stocks, etfs, crypto and things like commodities. My strategy will be 80% into indexes 10% into crypto and 10% into commodities and that is only because I don't want all my eggs in one basket so to speak.
eToro fees seem reasonable but I suppose with big $ value buys it  may not be in the long term.
Would love to hear what others do and which platforms are recommended.

Vashy

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Re: Which platform to use in Aus? eToro any good?
« Reply #1 on: October 04, 2022, 07:12:53 AM »
I'm not in Australia, but if you're looking into eToro, I'd recommend you run a "paper portfolio" and try out your strategies before you commit any actual money. Indices are not "one basket", in fact they comprise thousands of companies in many sectors and with many market caps and strategies, so a broad index (like the All-World) is as diversified as it gets.

misterhorsey

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Re: Which platform to use in Aus? eToro any good?
« Reply #2 on: October 04, 2022, 04:22:00 PM »
Welcome to MMM and the forum. Hope you enjoy learning about FIRE and all that.  The forum is pretty quieter these days, which is a shame.

As I say I am fairly new to MMM. As I read it, he basically recommends paying down all debt, except for the mortgage if is a long term thing, saving and investing the rest in Vanguard and similar indexes.

Worth noting that he also strongly recommends steering well clear of crypto. I think we can all make up our own minds on what assets we choose to invest in, but I tend to agree with him on this point.

Links to his posts on crypto if you're curious:

https://www.mrmoneymustache.com/2018/01/02/why-bitcoin-is-stupid/
https://www.mrmoneymustache.com/2021/03/26/beware-of-the-bubble/



I know that Vanguard has a website but I looked into eToro and signed up because I liked the fact that they offered indexes, stocks, etfs, crypto and things like commodities. My strategy will be 80% into indexes 10% into crypto and 10% into commodities and that is only because I don't want all my eggs in one basket so to speak.

I've not heard of eToro but I think a key thing for me with choosing an online broker is having CHESS sponsorship. I couldn't find any reference on the eToro website about CHESS sponsorship so I'd assume that they don't.

What is CHESS? This article explains it (although I don't endorse self wealth. It's just one of the clearer explanations I could find)
https://www.selfwealth.com.au/blog/what-is-chess-sponsorship-and-why-you-should-care-the-simple-version/

I'm with Commsec myself and have been for many years. I wouldn't necessarily recommend them as they are significantly pricier than the competition, but I value their stability as well as the ability to buy shares without actually having money in your account when you do.  Other brokers require you to have a fully funded account.  I've heard other people recommend selfwealth, stake and pearler.  Although if you are taking a primarily buy and hold index strategy without much trading, then it really doesn't matter too much which broker you have (so long as it's CHESS sponsored). I guess it's a balancing act between cost of brokerage, reliability/stability of the platform, access to foreign markets /commodities etc if that's your thing.

As @Vashy noted, if you have a nice spread of indexes across Australia + International shares, that should deliver you sufficient diversification without having to resort to crypto or commodities. Although if you are seeking some reduction in volatility, then fixed interest / bonds  offers that.

Lastly, this is a good Australian resource that drills down into strategies on how to construction an index based portfolio:

https://passiveinvestingaustralia.com/

goindeep

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Re: Which platform to use in Aus? eToro any good?
« Reply #3 on: October 04, 2022, 09:26:22 PM »
Thanks, will look at commsec and CHESS. I think at one point maybe 17 years ago I opened a paper commsec account.

Re: crypto.

Yes, it's a gamble. A gamble I am happy to take with small 3-4 figure numbers as I have done in the past and made significant amounts of money but also lost small 3-4 figure numbers. It is what it is, everyone has their vice, venom, spice or poison and it always costs something.

MMM does not talk about the third-party component in his blog post on crypto. That is the one thing that attracted me initially apart from being able to make astronomical amounts of money. Meaning, no third party is required, just you and I. 2 peers, that is all. No gov, no bank, nothing. Some people speculate that this aspect may have been a honeypot because of course the NSA or some other type of 3 letter agency created it. Well, assuming that is true, not all cryptocurrencies are created equal and there are some, like Monero, that are private and anonymous. There is big value in those 2 things; no third party required and anonymity.

Thanks