Narcis Miclaus

7 min read

Personal finance, from zero Lesson 40 / 60

How to actually start investing

A practical walkthrough from zero: broker setup, finding the right ETF, making your first purchase, and keeping it simple in Italian tax context.

We’ve covered 39 lessons of theory. This lesson is the practical walkthrough for someone who’s never actually made an investment transaction.

The goal: by the end of today, you have enough clarity to execute. Open the broker. Find the ETF. Place the order. Own your first shares.

Prerequisites

Before investing, make sure:

  1. Emergency fund in place. Minimum 3 months of essential expenses in conto deposito. Lesson 9.
  2. No high-interest debt. If you have revolving credit card balance at 22% TAEG, pay it off first. Lesson 10.
  3. Basic budgeting works. You know how much you can invest monthly without stress. Lesson 8.

Without these, investing is premature. Secure the base first.

Step 1: Pick a broker

For Italian retail investors, the main options as of 2025:

BrokerFeesRegimeBest for
Fineco€19/tradeAmministratoAll-in-one banking + investing
Directa€5/tradeAmministratoLower fees, Italian-focused
IWBank€9/tradeAmministratoMid-range
Scalable Capital€0-1/trade (Prime plan €4.99/mo)Amministrato (recent)Cheap ETF trading
Degiro€0-3/tradeDichiarativoCheap, need to self-file
IBKR (Interactive Brokers)Very lowDichiarativoAdvanced users, international
Trade Republic€1/tradeAmministratoSimple mobile-first

For most beginners in Italy: Fineco or Scalable Capital. Fineco if you already have accounts there or want the banking integration. Scalable if optimizing for low fees.

Avoid if new: Degiro, IBKR — require you to file your own Italian taxes (Quadro RW, capital-gains form). Adds significant yearly work.

Opening a brokerage account

Takes 1-3 weeks depending on broker. Process:

  1. Provide ID, codice fiscale, bank account for funding.
  2. Answer MiFID-mandated suitability questionnaire (risk tolerance, knowledge, experience).
  3. Sign electronically.
  4. Transfer some money to the brokerage account (€100-1,000 to start).

Some brokers (Fineco) are faster if you’re already a bank customer. New signup: allow 1-2 weeks.

Step 2: Find your ETF

You’ve decided on a global equity ETF (lesson 24 and 27). Likely candidates:

Option A: Vanguard FTSE All-World (Acc)

  • ISIN: IE00BK5BQT80.
  • Ticker on Borsa Italiana: VWCE.
  • TER: 0.22%.
  • What it holds: ~3,800 global stocks, developed + emerging markets.
  • Why: broadest diversification in one fund.

Option B: iShares Core MSCI ACWI (Acc)

  • ISIN: IE00B6R52259.
  • Ticker: SSAC.
  • TER: 0.20%.
  • Similar to VWCE, different index provider.

Option C: iShares Core MSCI World (Acc)

  • ISIN: IE00B4L5Y983.
  • Ticker: SWDA.
  • TER: 0.20%.
  • Developed markets only (no emerging). ~1,500 stocks.

All three work. Pick one. Don’t spend weeks optimizing.

Sofia picks VWCE (option A) for maximum diversification.

Step 3: Search and verify on your broker

In Fineco (or any broker), search by ISIN. ISIN is the unique 12-character code starting with the country of fund domicile.

For VWCE:

  • Search “IE00BK5BQT80.”
  • Results show: Vanguard FTSE All-World UCITS ETF USD Accumulation.
  • Click it. See the detail page: current price, listing exchange, spread, etc.

Verify:

  • ISIN matches what you wanted.
  • Listing is “Borsa Italiana” or “MTA” (EUR trading).
  • “USD” or “EUR” designation — usually “USD” fund currency but trades in EUR on Borsa Italiana.

Step 4: Place the order

On Fineco’s interface:

  1. Click “Buy” (Compra).
  2. Enter:
    • Quantity: number of shares. At ~€120/share for VWCE, €1,200 buys 10 shares.
    • Order type: usually “Market” (Mercato) for small amounts. “Limit” (Limite) with a specific price for larger amounts.
    • Time-in-force: “Giornaliero” (day).
  3. Review order summary. Fees: ~€19 at Fineco.
  4. Confirm.

Executes within seconds during market hours (9:00-17:30 CET).

Result: 10 shares of VWCE now in your account. Owned. You’ve started.

Step 5: Set up recurring purchase (PAC)

Most brokers offer automated monthly PAC:

In Fineco:

  1. Navigate to “Piano di Accumulo” (Accumulation Plan).
  2. Select VWCE (or multiple ETFs).
  3. Enter amount: e.g., €300/month.
  4. Select execution day: typically 5th or 15th.
  5. Confirm.

From now on: every month, Fineco automatically transfers €300 from conto corrente to brokerage and buys VWCE shares. No further action needed.

For Scalable Capital: even cheaper PAC (€0 per PAC trade), higher flexibility. Worth considering.

Step 6: Diversification — adding bonds

If your allocation calls for bonds, repeat the process:

  • iShares Core EUR Govt Bond UCITS ETF (Acc) — IE00B3VTML14.
  • Or Vanguard EUR Eurozone Government Bond UCITS ETF (Acc) — IE00BH04GL39.

Smaller monthly contribution (e.g., €100/month) into bonds.

Now you have a 2-ETF portfolio rebalancing via PAC.

Step 7: Tax handling

If Fineco (regime amministrato)

Fineco automatically:

  • Withholds 26% on any capital gains when you sell.
  • Withholds 12.5% on BTP coupons.
  • Withholds 26% on dividends (for distributing ETFs).
  • Applies imposta di bollo 0.2%/year.

You do nothing special for taxes. Fineco sends you a year-end Certificazione Unica Redditi di Capitale (CURC).

If Degiro or IBKR (regime dichiarativo)

You must:

  • Track every transaction.
  • File capital gains in Quadro RT of 730/Redditi.
  • File foreign holdings in Quadro RW.
  • Pay tax on filed amounts.

Significant annual work. Some investors use a commercialista (~€200-500/year) to handle. Not for absolute beginners.

Step 8: Don’t do these things in year 1

Common mistakes to avoid:

  1. Don’t check your portfolio daily. Once a month max. Ideally less.
  2. Don’t sell if market drops. Especially not in the first 2 years. You have no experience with market cycles yet.
  3. Don’t try to pick individual stocks. Stick with the ETF. Year 5+ is soon enough to dabble in stocks if you want.
  4. Don’t buy thematic or leveraged ETFs. These amplify risks, usually destroy wealth over time.
  5. Don’t switch brokers frequently. Moving assets is tax-inefficient. Stick with one for years.

Your job in year 1: buy monthly, hold, repeat. That’s it.

Step 9: When to add complexity

After 2-3 years of disciplined investing:

  • Consider adding emerging markets tilt if ACWI/FTSE All-World isn’t your base (most have some EM already).
  • Consider factor tilts (small-cap, value) if you’ve read the research and believe.
  • Consider adding BTP directly for Italian tax-advantaged bond exposure.
  • Open a fondo pensione for retirement tax benefits (lesson 49).

Don’t add all at once. Each addition should be deliberate and understood.

The absolute minimum portfolio

For someone with €5,000 total and no experience:

  • 100% in a single global equity ETF (Vanguard FTSE All-World, accumulating).
  • Plus €5,000-10,000 in emergency fund separately (conto deposito).
  • PAC monthly into the same ETF.

That’s a complete, defensible portfolio. Not optimized for every nuance, but adequate for 90% of people.

Opening questions

Common beginner questions:

“Should I wait for a better time?”

No. Time in market > timing the market (lesson 54). Start now.

”How much should I start with?”

Any amount. €100. €500. €10,000. Bigger start helps, but starting small is better than waiting.

”How often to buy?”

Monthly is standard. Weekly is fine too. Daily is excessive. Annually means missing months of compounding.

”What if markets crash after I invest?”

Historically, markets recover. If you’re investing for 10+ years, short-term crashes don’t matter to final outcome. The pain is emotional, not financial (unless you panic-sell).

”Should I tell my bank what I’m doing?”

No. Your bank will probably try to sell you a fondo comune or polizza with 2%+ ISC. ETFs are cheaper. Don’t let the bank talk you out of your plan.

Sofia’s first year

Month 1: opened Fineco (already had conto corrente there). Answered MiFID questionnaire as “balanced” risk profile. Funded brokerage with €5,000.

Month 2: bought 40 shares VWCE (€4,800) + 1 share iShares EUR Govt Bond (€67). Remaining cash buffer. Set up PAC €500/month (€400 VWCE + €100 bonds).

Months 3-12: PAC executes automatically. She logs in once a month to verify. Otherwise ignores portfolio.

By end of year 1: portfolio around €10,500-11,500 depending on markets. Emotionally comfortable. Building habit.

Year 2: similar. Reviews allocation January 2026. Maybe increases monthly to €600 as salary grew.

By year 5: portfolio ~€45,000. Feels normal. No drama.

What to do with this lesson

Three concrete actions:

  1. Open a brokerage account this week. Fineco or Scalable Capital. Takes 10 days.
  2. Within a month of account activation, make your first purchase. Even €500. Don’t wait.
  3. Set up monthly PAC within 2 months of first purchase. Automate the discipline.

Sources

  • Fineco — https://www.fineco.it/ (broker reference).
  • Scalable Capital — https://it.scalable.capital/.
  • Vanguard Italia — https://www.it.vanguard/professional/product.
  • Borsa Italiana — ETF search. https://www.borsaitaliana.it/etf/etf.en.htm.
  • r/ItaliaPersonalFinance — active community for broker comparisons and first-time-investor questions.

Module 6 complete. Next: costs and taxes deep-dive. Lesson 41: TER — the silent killer.

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