DEGIRO is a Netherlands-based online brokerage established in 2008 and made available to retail clients in 2013. It endeavors to establish an affordable and user-friendly platform for stock trading. Their aim is to simplify the trading process while providing access to diverse global financial markets. DEGIRO is an appealing choice for investors of varying expertise levels looking to build a long-term global stock portfolio due to its accessible trading platforms. However, for short-term traders in search of advanced charting tools and lower derivatives trading expenses, DEGIRO may not be the optimal selection.
Safety
DEGIRO was founded in 2008, indicating a longer operational history that suggests its resilience through past financial crises. In 2013, DEGIRO expanded its services to cater to retail clients in the Netherlands. In December 2019, Flatex, a German brokerage firm, declared its intention to acquire DEGIRO while retaining the brand.
Operating as a German-regulated institution, FlatexDEGIRO Bank AG primarily falls under the supervision of the German financial regulatory authority, the BaFin. DEGIRO also notifies regulators in other countries where its services are offered, ensuring awareness of its operations. In the Netherlands, the integrity supervision of DEGIRO is overseen by the Dutch Central Bank. Furthermore, DEGIRO is authorized and regulated by the Financial Conduct Authority in the UK. Moreover, FlatexDEGIRO Bank AG is subject to the indirect supervision of the European Central Bank.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| All Countries | FlatexDEGIRO Bank Dutch Branch | Federal Financial Supervisory Authority (BaFin), Germany | €20,000 for securities |
Your uninvested funds will be securely held in a segregated personal bank account with a designated IBAN. This Cash Account is seamlessly linked to your existing DEGIRO investment account. It’s important to note that this Cash Account is exclusively designated for holding funds to facilitate investments within your DEGIRO account and cannot be utilized for general banking purposes.
Account Opening Process
Opening an account with DEGIRO is swift, entirely digital, and entails no minimum deposit. The process typically takes just one business day, and you only need to provide a copy of your passport or ID card along with the bank account number you’ll use to fund your investment account.
Account Types
| Account Type | Description |
|---|---|
| Custody | Entry-level account for stock, investment fund, bonds, and ETF trading |
| Basic | Versatile account with all the basic features without leverage |
| Active | Versatile account with all the basic features and leverage (50% of available margin) |
| Trader | Versatile account with all the basic features and leverage (100% of available margin) |
| Day Trader | Versatile account with all the basic features and leverage (100% of available margin + additional margin during trading hours) |
Products
DEGIRO offers access to numerous markets and a diverse range of products for trading. However, it’s important to note that CFDs and forex trading are not supported. While DEGIRO boasts a robust product portfolio, with competitive offerings in stocks, options, and futures, it falls somewhat short in its fund and bond selections, which are considered average.
Stocks
DEGIRO provides access to 29 stock exchanges, encompassing major global markets alongside various smaller European exchanges. In contrast to certain other brokers, DEGIRO allows trading of nearly all listed companies rather than just a limited selection. However, it does not facilitate access to American Pink Sheets or US over-the-counter markets.
Fees
DEGIRO offers competitive trading fees across all asset classes and maintains low non-trading fees, with no charges for inactivity or withdrawals. However, there are fees associated with trading US options or futures, as well as currency conversion costs.
Low Stock Commissions
DEGIRO’s fees for trading US stocks are approximately half of the industry standard. These fees are structured as follows: a flat rate of €2 per trade. Additionally, if you engage in trading on US and Canadian stock exchanges, DEGIRO imposes a $1 commission along with a $1 trade handling fee.
| Stock Type | Commission Cost |
|---|---|
| US Stock | $2.2 |
| UK Stock | $3.4 |
| German Stock | $5.3 |
Low Margin Rates
DEGIRO’s USD margin rate fees are below the industry norm. These fees are determined as follows: the unallocated debit rate (USD) stands at 6.9%.
| Margin Rate Currency | Annual Margin Rate |
|---|---|
| USD Margin Rate | 6.9% |
| EUR Margin Rate | 6.9% |
| GBP Margin Rate | 6.9% |
Withdrawal, Inactivity & Other Fees
There are no account, inactivity, withdrawal, deposit, or custody fees with DEGIRO except for a monthly service fee for mutual funds. However, there is a unique fee called the Exchange Connectivity Fee for trading outside your home market.
| Fee Type | Fee Value |
|---|---|
| Account Fee | ❌ |
| Deposit Fee | ❌ |
| Conversion Fee | 0.25% |
| Inactivity Fee | ❌ |
| Withdrawal Fee | ❌ |
For each stock exchange used outside your home market, you’ll be charged a maximum of €2.50 per calendar year. For instance, if you’re a UK investor trading on the London Stock Exchange, you won’t incur this fee. However, investors from Germany or France would pay €2.50 annually for using the London Stock Exchange and an additional €2.50 for using the Stockholm Stock Exchange, and so forth. These charges apply if you execute a transaction or hold a position on the specific exchange during the calendar year.
Conclusion
In conclusion, DEGIRO provides access to an extensive range of instruments, markets, and exchanges for trading. However, it’s important to note that cryptocurrencies and forex trading are not offered by this broker. While its platform is user-friendly, it’s worth mentioning that its fees may not be the most competitive. On the bright side, the registration process is straightforward. But the standout feature is undoubtedly DEGIRO’s status as a regulated broker, ensuring proper registration and supervision in both Europe and the UK.
