💻 Invest with Degiro
What is an online broker?
An online broker is a platform that allows you to buy and sell financial assets (stocks, ETFs, bonds, etc...) from your computer, 24/7. An online broker has many advantages:
Online brokers are popular among individual investors who want to manage their own portfolios (the total of their investments) without going through a physical intermediary.
📈 Degiro & Profitability
If different financial products are available through an online broker, ETFs (Exchange Traded Fund) are an interesting choice for passive investment. They are exchange-traded index funds, which can be seen as a basket of stocks that follows the performance of a stock index like the S&P 500, the Nasdaq 100, or even the CAC 40.
ETFs therefore offer many advantages:
🔹 Immediate diversification
By purchasing a single ETF, you automatically invest in dozens, if not hundreds of companies.
🔹 Reduced fees
ETFs have very low management fees, less than 0.5 % per year.
🔹 Accessible and liquid
They are bought and sold on the stock exchange like a stock, in real time.
ETFs are ideal for passive and long-term investing because they allow you to replicate market performance without having to individually select stocks.
Example of the S&P 500:
Since its inception (1957 - present): Approximately 10.2 % per year.
Over the last 30 years (1994 - 2024): Average return of approximately 9 to 10 % per year.
Over the last 10 years (2014 - 2024): Approximately 11 to 12 % per year, boosted by tech.
Despite crises and corrections (like in 2000, 2008, or 2020), the S&P 500 has always shown solid long-term growth.
⚡ Easy & Automatic Investment
When you buy or sell a stock or an ETF, you must choose a type of order.
⏳ According to the duration in time
Day order: The order is valid until the end of the trading session. If it is not executed, it is canceled.
Good Till Cancelled" (GTC): The order is executed as soon as it finds a matching buyer or seller, based on the set price.
📦 According to availability and fluctuations
Market order: Immediate purchase or sale at the best available price, without guarantee of exact pricing.
Limit order: Purchase or sale at a defined maximum (buy) or minimum (sell) price. The order only executes if that price is reached.
Here is an example of a purchase order for an S&P500 ETF, continuously, at the market price.
To go further, there are other types of orders that allow one to protect themselves in the case of potential market declines.
📉 Protection Orders
Stop Loss : Automatic sale if the price reaches a defined threshold to limit losses.
Stop Limit : Similar to the Stop Loss, but the order becomes a limit order.
🔑 Degiro – My Referral Code
Receive a voucher of €100 to cover the transaction fees for the first months by signing up through this link: Degiro
