For a normal purchase order, you pay:
€4.00 per order + 0.04% on the value of the order, up to a maximum of 150 euros.
For a DRIP, you pay:
0.375% on the net dividend amount.
Whether DRIP is beneficial from a cost perspective depends on the level of the net dividend amount on which you pay costs. In addition, the higher the net dividend amount, the more costs you pay with DRIP.
You can see below how this works out with a net dividend amount between 1,000 and 2,500 euros.
So from 1,196 euros on, DRIP works out more expensive than a normal purchase order.
To give you an idea of when you reach this crossover point:
Let’s say the price of a share is € 41.50 and that the net dividend per share is € 0.33. Then the crossover point of € 1,195 equals an investment of approximately € 150,271 in that share. In this example, this equals 3,621 shares (€ 1,195 / € 0.33 = 3,621 and 3,621 x € 41.50 = € 150,271).
The costs in this example may change. Please go to Self-directed Investing Plus for the current costs.