Start Investing With Emma

Hey everyone! :grinning:

Have you seen that we’ve added a couple more investment platforms into Emma? :raised_hands:

We now have Wealthsimple, Nutmeg, Coinbase, Fidelity, and Etoro!

You can even connect Wealthsimple, Nutmeg, and Coinbase direct to your Emma account :bear:

Does anyone use any of these platforms? Or, have you tried a few of them and now have a favourite?

I used Coinbase during my experiment with crypto, but closed it when my money dropped dramatically.

Should have put it in Premium Bonds instead lol

Or perhaps kept it in Bitcoin…

Na. I bought at the top of that peak, in the middle of your graph.

Though, yes, loss would not have been so severe.

I only played with £100 though, so wasn’t end of the world.

Only play with what you can afford to lose

I’ve used their platform for a while, but opened the accounts via (now defunct) Cavendish. Horrendous website layout. App is just a skin. SIPP was cheap via the Cavendish route though. Now switched to Vanguard.

They’ve been constantly upgrading, but with no change, as far as I can see. Fidelity just looks and feels very old school and fusty, so likely to put off first time investors or anyone used to decent websites and apps!

I use Nutmeg but will be considering switching potentially. They are very easy to work with, great customer service, decent site. App is not as good as the website but it’s not terrible.

Have just connected my Coinbase account to Emma. The GBP value of my crypto is being reported differently when comparing Emma and Coinbase.

Is Emma reading the crypto value and then converting to GBP? Or is it reading both crypto value and coverted GBP value from Coinbase?

Oooo I’m not sure. Can you reach out to live-chat and then they can look into this properly for you! :blush:

What’s making you want to switch? And any idea who you’ll switch too?

Im not sure yet, I need to see if there is a cheaper LISA for me, and then if I want to combine LISA and ISA into a single platform, potentially with pension too. Nutmeg can do all of that but it’s not known for being the cheapest :frowning:

There are so few LISA options that you’re limiting yourself quite a bit if you go for everything in the same place

I appreciate but I prefer few providers over cost. It’s not set in stone, if it’s terrible I won’t do it.

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My wife has Fidelity, and I’ve Vanguard. Glad to see both working well in Emma.



What were the main reasons for you and your wife choosing different platforms?

Just link it in Emma. :wink:

Already have @edoardomoreni :wink:

But I like to make payments in native apps and use the prediction features they have.

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We only just started investing on our own in July. Work-based 401k/457b investing was based on limited selections that the employer’s retirement planner had pre-selected, and done automatically on payday, based on an amount we selected a month before.

As we didn’t know which personal investing platform would be the best, we figured we try two different ones so we could try some different ones out - one for her and one for me. During the months while we were saving up our 6 month Emergency Fund, I started researching investing. Fortunately, I found the forum and the “Jack Bogle” way of investing (Bogle founded Vanguard). The top 3 recommended ones in the US for access to low Expense Ratio (ER) Index Funds are Vanguard, Fidelity and Schwab. Vanguard was started by Jack Bogle therefore my top choice. Fidelity had access to zero-ER Index Funds so it won our our second choice.

One of the things I’ve been taught in both an in-person class and online forums ( ) is to create your investment plan, and then automate it. Don’t deviate or try to micromanage it or “time the market”. We have a very high risk tolerance, partly because we refuse to deviate from our investment plan. Only annually will we review our investment plan and only at that time, with some deliberate thought, adjust it such that it’ll be the plan for the next year. Does it freak me out when I see we’ve “lost” $20k in a single day? You betcha - but we just leave it alone, knowing it’ll bounce back and continue upwards. We’re up over 30% this crazy year, but there were some crazy dips in there.

Fidelity’s interface to automate investing is both confusing and not friendly for those who are paid anything other than on a date-of-the-month based schedule. It can only automate a with a repeating date-of-the-month (say the 2nd) and then would have to also create a second repeating automation (say for the 16th). This is fine if you’re paid on say just the 1st of the month, or the 1st & 15th. If you are, Fidelity may be just fine for you.

The other confusing thing with Fidelity is that you must schedule two transactions: one transaction to transfer the money from your bank to their “core position” (basically a money market, holding account) and then a second to purchase equities or bonds. With Vanguard, this is a single automated transaction to purchase the equities or bonds from money in your bank account.

I’m paid every 2 weeks (26 times a year), so date-of-the-month scheduling doesn’t match up to my payperiods. So each year I’ll be looking at the calendar to find the closest sets of repeating dates that match my paydays. For Fidelity starting in Sept until the end of the year, this looked like setting up 3 repeating transactions for the 8th, 19th, and 30th on certain months (but not all):
Sep 8, Oct 8
Sep 19, Oct 19, Nov 19, Dec 19
Aug 30, Oct 30, Nov 30, Dec 30

Our payday money is sitting in our bank account after payday for a day or two or four, not invested while waiting for one of these dates above to occur. And Fidelity requires any automated transaction to be at least 2 or more transactions, so you can’t just pick a single date that follows each Friday payday (hopefully the logistics of a paid-every-other-Friday vs. date-of-the-month makes sense.

Additionally, it is delayed when investing with Fidelity vs. Vanguard. For Fidelity, if I tell it to schedule a transfer and investing on a given day, then there is a day or two delay from when the monies leave my bank until the fund purchase actually takes place. For Vanguard, it is the opposite: if I schedule the purchase for that day, it will be purchased that day, and the funds will be withdrawn from my account the following day and settle at Vanguard the day after. So with Vanguard my transaction is made while the money “floats” vs. Fidelity and/or the bank gets to “float” my money while I don’t have it invested. This isn’t really a big deal, but I just don’t like that for 26 times a year my money isn’t working for me for a day or two, plus the existing 1-4 day delays with the whole date-of-the-month thing, can easily add up to a couple months each year that my money is sitting in my bank after payday and not invested.

This Christmas holiday when we sit down to review and possibly revise our investment plans (asset allocation, fund and bond selections, etc.) we may consider putting less into Fidelity’s platform and perhaps opening an account with Schwab. I want something, like Vanguard, where I can set it and forget it for 364 days until it’s time to review again, and I want to be able to do it in a very short amount of time and not take an hour or so to do the calendar math to figure out how to best “automate” 52 transactions (a minimum of 26 bank transfers and 26 investments). If we end up liking Schwab, we’ll probably just sell everything at Fidelity and transfer the retirement account monies over - if if we don’t like Schwab, we’ll just have her open a Vanguard account.

One advantage Fidelity has over Vanguard is that you can start your investment automation right away. With Vanguard, you can only automate buying a Mutual Fund you already own. Vanguard has a minimum of $3,000 to purchase a Mutual Fund, so this took us a few months to get into the account. In the meantime, we manually bought ETFs that matched the MFs we wanted to buy. The purchase of Vanguard ETFs cannot be automated. However, once we had $3,000 invested in an ETF, we then could sell that ETF and purchase the MF we wanted. Now that we owned a MF, we could automate future purchases of that MF. As we presently only have one MF (VTSAX) with my personal Vanguard account, this isn’t a big deal, but if someone wanted to own many MFs, this could cause a delay in being able to automate purchases. On the other hand, Fidelity has no minimum to purchase a MF and once you own a position in a MF, future purchases can be automated.

What I really wish is that these institutions let a person open a “dummy account” just to try out the interface.

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Great reply @Jason - The golden rule I tell everyone is you only lose money if you sell at a loss.

I have a Trading212 account which does let you play with dummy money, but I use it like you would, for automating. My investment plan is 20 years (meaning I’ll use it when I’m 55) and is fairly high risk.

I don’t look at it day to day anymore, perhaps every few days but if they didn’t have an app, that would fall to every month most likely.

I also have a Freetrade account for playing with some cash, but again I hold onto anything at a loss until it goes up. If I don’t want it or it’s not good news for the industry or company, I’ll pull it once I am due only a few pennies of interest.

I also separate any regret before it happens. I recently sold stock in an investment firm that invested in the company I work for. It was up almost 40% and I hadn’t seen it go up that high and it’s quite a volatile stock.

Sure I could have made more as it continued to rise, but I didn’t lose. With this cash platform it’s not about making big bucks (I leave that automated), it’s about learning and playing for fun. :slight_smile:

I saw this article linked below.

“Like many investors, I do have one big retirement-savings regret. In my 20s, I spent four years letting my hard-earned savings languish in the holding account at my brokerage before taking the time to learn how to invest it wisely. When you transfer money into a brokerage account, it isn’t automatically invested — it goes into a holding account, and then you decide how to invest it — which I refused to do.”

Good point that you need to not just put money into your brokerage account, but also buy something with it. I understand not wanting to invest until one is more educated on the topic. At a minimum, pick a target growth Mutual Fund (based on a target year of retirement). While this doesn’t have the lowest Expense Ratio (ER), it is still better than just sitting in a holding account.

For instance, my employer does this by default until someone instructs the investment company to do otherwise. They use Vanguard Target Retirement date Mutual Funds. You don’t need to know anything about investing - the fund managers do that for you and adjust it over time to be less risky as you approach your retirement age. All you need to do is calculate the year you’ll retire (default age in the US is 65) and pick the closest Vanguard Target Retirement Fund.

As an example, I was born in 1977. My default retirement age of 65 works out to: 1977+65=1942. The closest match is Vanguard’s 2040 (they are available in 5 year increments). If I was a year younger and defaulting to retirement in 2043, or (in my case) perhaps planning to work an extra year or two, the match would be 2045.

While I don’t think this is the best pick for me now that I am more educated about securities, it was better than simple interest for the last 10 years while I waited to get educated. When I was ready to pick my own investments, I just sold all of the Vanguard Target 2040 holdings and bought based on my new investment plan. Without me doing a thing other than working, the 2040 holdings earned me a fair amount of money.

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Typo? :joy:

I like you post though