How to buy a few thousand shares of VWCE?

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Topic Author
nick_r
Posts: 3
Joined: Thu Feb 12, 2015 8:05 am

How to buy a few thousand shares of VWCE?

Post by nick_r » Wed Nov 13, 2019 12:41 pm

Looking at IB's trading data I noticed that the daily trading volume for the Euro version (VWCE) is seldom over a thousand shares.

Should I place multiple orders of a few hundred shares each?

Or maybe I should exchange my Euros into USD and buy the USD version (VWRA)?

Also, this is a historical market maximum... Is it better to wait or do some scheduled/limited buys?

I have zero experience with this and most advice I saw is geared towards smaller investors.

Thanks!

Schlabba
Posts: 166
Joined: Sat May 11, 2019 9:14 am

Re: How to buy a few thousand shares of VWCE?

Post by Schlabba » Wed Nov 13, 2019 2:47 pm

nick_r wrote:
Wed Nov 13, 2019 12:41 pm
Looking at IB's trading data I noticed that the daily trading volume for the Euro version (VWCE) is seldom over a thousand shares.

Should I place multiple orders of a few hundred shares each?

Or maybe I should exchange my Euros into USD and buy the USD version (VWRA)?

Also, this is a historical market maximum... Is it better to wait or do some scheduled/limited buys?

I have zero experience with this and most advice I saw is geared towards smaller investors.

Thanks!
Just put in your order and get it. Don’t time the market.

And a few thousand of an etf which costs 82€ a piece does not really make you a huge investor. But the advice for someone with millions would be the same.
IWDA: MSCI World | EMIM: MSCI Emerging Markets | AGGH: Global Aggregate Bond Hedged to €

TedSwippet
Posts: 2509
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: How to buy a few thousand shares of VWCE?

Post by TedSwippet » Wed Nov 13, 2019 5:15 pm

nick_r wrote:
Wed Nov 13, 2019 12:41 pm
Should I place multiple orders of a few hundred shares each?
What I do is to look at the current Bid and Ask prices, and then place a limit order somewhere between the two, probably close to or at Ask (a 'marketable limit order'). That guarantees no surprises when the trade executes. Also, avoid limits at round numbers, and trading just after market open or just before close.

glorat
Posts: 295
Joined: Thu Apr 18, 2019 2:17 am

Re: How to buy a few thousand shares of VWCE?

Post by glorat » Wed Nov 13, 2019 7:45 pm

nick_r wrote:
Wed Nov 13, 2019 12:41 pm
Or maybe I should exchange my Euros into USD and buy the USD version (VWRA)?


Since you are on IB do this. Most global assets are in USD so either IB will do the conversion for you or Vanguard will. Since commissions and spreads are near zero for both options, I'd convert to USD first to enjoy the more liquid ETFs with narrower spreads

oogZoo
Posts: 28
Joined: Mon Sep 02, 2019 12:05 pm

Re: How to buy a few thousand shares of VWCE?

Post by oogZoo » Thu Nov 14, 2019 6:55 am

If you do not have visibility to the order book through your broker, you can have a look through Börse Frankfurt web site: https://www.boerse-frankfurt.de/en/etf/ ... cumulating (though it is 15 minutes delayed)

There is always a few thousand shares of this ETF available on both sides, so there is no need to split your order to small pieces. The authorized participants are doing their job by providing liquidity. Still probably a good idea to use limit order.

Topic Author
nick_r
Posts: 3
Joined: Thu Feb 12, 2015 8:05 am

Re: How to buy a few thousand shares of VWCE?

Post by nick_r » Fri Nov 15, 2019 8:27 am

Thanks a bunch! As I said, I have lots to learn.

Some weird things about IB I just don't understand, maybe someone can enlighten me:

1) When previewing this BUY order a couple of days ago I got the estimated commission of 29.90 EUR but now for the exact same order I get the estimate of 56.50 EUR. (I am on the tiered pricing plan) No biggie, I just wonder where is that increase coming from?

2) Does it matter which Exchange I buy from? IB shows me FWB2, IBIS2 and SMART (which I guess lets IB choose). The last two have the 56 euro commission while FWB has over 300.

3) The amount of money just left in my cash account is shown as decreasing in dashboard, while the purchase power is still the original amount. Some sort of negative interest? Or relative devaluation of EUR vs USD? Is this already applied or only after a while? Stupid question maybe but I don't get it. :)

Thanks again!

imperia
Posts: 195
Joined: Tue Feb 21, 2017 6:31 am

Re: How to buy a few thousand shares of VWCE?

Post by imperia » Fri Nov 15, 2019 8:28 pm

1. You need to study tier pricing structure. It depends of many factors. Sometimes can be good for you, but sometimes the oposite.

2. I suggeat you to select "Smart" and IB will select best option for you. I allways use smart.

3. Sorry but I can not help you, maybe you can post screen shots and maybe I will understand than.
I suggest ask costumer service or try to find something on google.
IB has good youtube channel with many videos, maybe to try there.

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