DEGIRO has established itself as a trusted name in stock trading. Established in 2008 by a group of former employees of Binck Bank, the firm started its online brokerage services in 2013. Within a short period, it has grown to be one of the leading retail stockbrokers in Europe. Headquartered in the Netherlands, DEGIRO has expanded its online trading platform across 18 European countries with over 2 Million accounts.
DEGIRO approached the market with aggressive strategy to set itself as a benchmark. It is able to differentiate itself from its competition as an online discount broker, offering multi asset brokerage service in more than 84 assets, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, warrants, and many more. In 2021, DEGIRO set a milestone in the stock trading sector by merging with a German online broker, Flatex AG. Now it operates as the biggest online execution-only broker in Europe with its own banking license.
In spite of the wide range of instruments available, DEGIRO does not deal in currency
pairs and cryptocurrencies,
which most other online brokers offer to their clients these days.
Nevertheless,
it is one of the most reliable brokers licensed by several financial regulatory bodies in
Europe. Innovation and transparency lie at the core of DEGIRO’s business philosophy.
Best Alternative to DEGIRO is eToro
- #1 Copy Trading Platform
- Regulated by Top Tier Regulations
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- 0% Commission on Stocks*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
*on selected US stocks
DEGIRO Overview
| Website | degiro.com |
| Founded | 2008 |
| Headquarters | Amsterdam, Netherlands |
| Area of Operation | Available in 18 European countries |
| Type of Company: | Private Company (not listed in any stock exchange) |
| Bank | Yes (flatexDEGIRO Bank AG) |
| Regulation | De Nederlandsche Bank (DNB), German Federal Financial Supervisory Authority (BaFin) |
| Trading Instruments | 84 instruments (stocks, bonds, mutual funds, options). Forex and CFDs not available |
| Minimum Deposit | $0 |
| Minimum Trade | Varies by asset |
| Trading Platform | MT4, Browser-based (Web and Mobile) |
| Copy Trading | Not Available |
| Withdrawal | Free |
| Base Currencies | Nine Base Currencies: EUR, GBP, DKK, NOK, CHF, SEK, HUF, CZK, PLN |
| Payment Methods | Bank Transfer Only |
| Islamic Account | No |
Pros and Cons of DEGIRO
DEGIRO stands out of the competition as the best discount broker with its unbelievably low fees in all types of market instruments. Contrary to most other brokers, DEGIRO charges nothing for most of its non-trading services like withdrawal, deposit, and inactivity. Its trading account opening process is relatively hassle-free, and the trading platform is well-designed and user-friendly.
| Pros | Cons |
|---|---|
| One of the best discount broker with the lowest fee structure | Limited product portfolio (doesn’t offer investment in Forex, CFDs, and Cryptocurrencies) |
| Licensed by major top-tier financial authorities | No Demo Account |
| Easy to open trading account | Only one method of payment is available (Bank transfer) |
| User-friendly trading platform | Limited research and analysis tools |
| Banking license | |
| Access to international stock markets |
DEGIRO is registered with several top-tier financial authorities in Europe, viz. AFM, DNB, FCA, and BaFin. Therefore, the investors’ money is in safe hands. It’s no surprise that DEGIRO has been able to win the trust and confidence of over 600,000 clients within a few years of launching its online brokerage services to retail investors.
Despite its limited portfolio of assets, DEGIRO offers its clients with access to more than 50 international stock exchanges, thus broadening the scope of trading or investment. However, it misses out on the major assets like Forex and CFDs. Unlike other trading platforms, DEGIRO does not provide a demo account for inexperienced traders. The biggest concern is its lack of real-time market price updates. The prices are delayed by 15 minutes. A trader needs to pay an annual fee for real-time market prices.
Bank transfer is the only payment method in DAGIRO. Besides, the research tools in its platforms are limited and does not offer advanced analytical functionality.
Compare DEGIRO to Similar Brokers
| Feature | DEGIRO | Oanda | eToro | Plus500 |
|---|---|---|---|---|
| Year of Establishment | 2008 | 1996 | 2007 | 2008 |
| Headquarters | Netherlands | US, Canada | Cyprus, UK | Israel |
| Regulation | AFM, DNB, FCA, and BaFin | CFTC/NFAFCA, FSA, MAS, ASIC, IIROC, MFSA | FCA, CySEC, ASIC, Markets In Financial Instruments Directive (MiFID) | Cyprus Securities and Exchange Commission (CySEC) |
| Number of Clients | Over 2 Million users | Over 10,000 users | Over 20 million users | Over 22 million users |
| Negative Balance Protection | N/A | No | Yes | Yes |
| Minimum Deposit (in £/US$) | 0 | 0 or 1 | 50 | 100 |
| Withdrawal Fees | No | Yes (varies with withdrawal method) | Yes ($5 withdrawal fee; waived for Platinum or Diamond eToro Club members) | No |
| Inactivity Fees | No | No | Yes | Yes |
| Instruments Available | 84 (FX and CFDs aren’t available) | 100 (FX/Currencies and CFDs) | 2000 (FX/Currencies, Commodity CFDs, Indiced and Stock CFDs, Cryptocurrency | CFDs on 2500+ instruments |
| Trading Platform | MetaTrader 4 (MT4), Web, and Mobile | Meta Trader 4 (MT4), Desktop, Web, and Mobile | Web Trader, Tablet and Mobile | Web Trader, Tablet and Mobile |
| Payment Methods | Bank Transfer only | Bank Transfer, Debit Cards, Check, Payoneer | Bank Transfer, Debit/Credit Cards, PayPal, Skrill, Payoneer, Neteller, Cryptocurrencies | Bank Transfer, Debit/Credit Cards, PayPal, Skrill, Electronic Wallets |
DEGIRO’s Regulation and Licensing
DEGIRO’s regulatory status is quite impressive. Although a private company, DEGIRO has its own banking license following the merger with Flatex AG in 2021. Naturally, DEGIRO fall under the direct regulation of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and indirect supervision of the European Central Bank (ECB). Besides, the Dutch Central Bank (DNB) and The Netherlands Authority for the Financial Markets (AFM) continuously supervise its operation and financial integrity. It is also granted legitimate status by the UK Financial Conduct Authority (FCA).
All these regulatory and licensing provisions are necessary to ensure the safe trading and investing environment and minimize the risks of frauds and scams by the brokers. Each broker has to go meet specific criteria to get a license from the respective authority.
DEGIRO Trading Platform
For DEGIRO, simple is beautiful, which is evident from its trading platform. It is available in browser-based web and mobile platform with simplicity and functionality in mind. The interface is intuitive, straightforward, and is easy to use.
DEGIRO WebTrader
DEGIRO WebTrader comes with all the basic features that an ideal trading platform should have. The developers have focused on improving the trading experience with integrated design features. The trader can have a clear overview of his portfolio and transaction list, along with the real-time market news and updates.
DEGIRO has done a great job working towards the protection of user’s data and privacy. It has embedded security features like two-step authentication and face ID verification. But the developers have skipped on price alerts in its platform, which is the most basic requirement for live trading. Although it offers several charting tools, they are limited in terms of customization.
DEGIRO Mobile App
Similar to WebTrader, Degiro Mobile App allows the users to access their portfolio and transaction lists with ease. They can get real-time market updates as well. The app is intuitive and efficient, but it looks somewhat outdated. Customization features are lacking.
MetaTrader 4
DEGIRO is not compatible with MetaTrader 4 (MT4) platform. This is because MT4 is used in Forex and CFDs trading. Since DEGIRO does not deal in both of these instruments, the traders are not able to trade in markets like stocks, bonds, ETFs, and others. But its in-house trading platform offers functionalities similar to MT4.
Nevertheless, MT4 can be used with DEGIRO via its browser-based platform to take advantage of its customization features and advanced charting tools. MT5 and cTrader are beyond the reach of DEGIRO till now.
| Platform Features | DEGIRO |
|---|---|
| Proprietary Trading Platform | Yes (WebTrader and Mobile App) |
| Desktop Platform | No |
| Web Platform | Yes |
| Mobile Platform | Yes |
| Charting | Yes |
| Demo Trading | No |
| Social Trading/Copy Trading | No |
| MetaTrader 4 (MT4) | No |
| MetaTrader 5 (MT5) | No |
| cTrader | No |
| Order Types | Market OrderLimit OrderTake Profit OrderStop Loss OrderTrailing Stop Order |
| Alerts | No |
| Login and Security | Yes (Face ID and two-step authentication) |
| Watch lists | Yes (available as “Favorites”) |
Markets Available
DEGIRO offers a wide range of market instruments to its clients. The offering of investments includes stocks, bonds, futures, options, mutual funds, ETFs, and investment trusts.
Although DEGIRO does not provide forex, CFDs, and cryptos to its clients, they make up for this by providing them with access to a remarkable range of over 5000 EFTs. The traders can buy shares in 32 international stock exchanges located in Europe, Oceania, Asia, and North America via DEGIRO.
Fee and Commission Structure
DEGIRO has earned a reputation for offering the lowest rates (up to 80% less than other brokers) in the market. As a discount broker, its rates are highly competitive.
The maximum charge per trade is £5.00, and the trader has to pay £1.75+0.014%. The fee is just €0.50 + USD 0.004 per share for trading in US stock markets. The fee structure varies according to the instruments.
In general, there are two types of fees that every broker charges to their clients, viz. Trading fees and Non-trading fees.
Trading Fees
Trading fees are broker commissions, financing rates, conversion fees, and spreads. These fees are charged when the assets are traded by the client.
Non-Trading Fees
Non-trading fees are not related to trading activity per se. Withdrawal fees, inactivity fees, and deposit fees are the examples of non-trading fees.
DEGIRO allows its clients to transfer money to their trading accounts free of cost. There is no minimum deposit amount required when opening an account with DEGIRO. It does not charge withdrawal fees, but it involves a conversion fee if the base currency is different from the withdrawn currency. DEGIRO does not have inactivity charges in its fee structure, but the broker recommends the client to close his account in that case.
Exchange Connection Fees (Connectivity Fee)
DEGIRO charges connectivity fees for trading outside the home market.
For
instance, a trader living in the UK needn’t pay any fee for trading from the London
Stock Exchange (LSE).
But if he buys shares from any other brokers outside home
market, such as New York Stock Exchange (NYSE), then the trader has to pay
€2.5 annually as an exchange connection fee, irrespective of the
volume of trade.
Research and Education
Compared to other brokers like eToro and Oanda, DEGIRO slightly lags behind in terms of research functions. Degior’s WebTrader platform is simple in design with basic research features suitable for beginners and intermediate traders. Since it doesn’t deal with Forex and CFDs, its research capabilities are limited.
However, DEGIRO offers a collection of quality educational resources through its dedicated portal “Investor’s Academy”. The tutorial videos and blogs are aimed at orienting new investors with the trading environment and its WebTrader platform. This may be useful for novice investors, but it is not sufficient for more experienced traders. Having advanced charting tools and analytical features would have made DEGIRO even better.
Account Types
DEGIRO offers one type of of live account to its clients. It is called the Basic account.
Basic Account is the default type of account in DEGIRO which allows the client to trade in all types of assets without any extra charge or limitations.
Custody account is no longer available at DEGIRO. It is used as an entry-level account for new investors. But unlike the basic account, the clients can’t lend their securities to third parties. This is because of asset segregation, which is required by the Dutch regulations so that the clients don’t lose their assets even if the broker goes bankrupt.
These accounts don’t provide access to debit money, debit securities, and derivative trading. DEGIRO offers Active, Trader, and Day Trader account for such services.
Is DEGIRO Safe?
DEGIRO is one of the safest and most reliable brokers in Europe. Thanks to its regulatory and financial compliance with top-tier authorities like BaFln, DNB, FCA, and AFM. DEGIRO segregates the clients’ assets in separate entities. This means that the clients do not lose their investments even if the broker goes bankrupt. Following the merger with Flatex AG, DEGIRO falls under the German Deposit Guarantee Scheme that requires the broker to guarantee up to €100,000 for the money deposited in its Cash Account. DEGIRO doesn’t provide negative balance protection to the clients, but this shouldn’t be a problem because it doesn’t deal in Forex and CFDs,
Customer Service
The low-cost structure sounds like a good selling point, but DEGIRO can do better with customer service. It offers most services like deposit, withdrawal, and inactive accounts without any additional charge. The client needs to pay management fees for personalized customer service.
DEGIRO provides its customer service in 18 different languages via phone calls and emails only. They are able to resolve the clients’ issues relatively well. Phone support is quite responsive, whereas email support can go unanswered for a while. DEGIRO doesn’t have live chat support for its clients, which is a major drawback.
Final Thoughts
DEGIRO’s biggest strength is its ability to minimize the fee structure without compromising on the services it offers. Although its portfolio of assets is limited and doesn’t include Forex and CFDs, it trades in 84 different instruments such as stocks, bonds, mutual funds, and EFTs across 32 international stock exchanges.
DEGIRO has established itself as the leading online, execution-only broker in Europe with its own banking license. Top-tier financial authorities regulate it in Europe. Therefore it is trustworthy. It is safe to trade with DEGIRO.
DEGIRO’s WebTrader platform is well-designed and simple to use. It can be a great choice for investors who are looking for a low-cost trading platform. It does not charge the clients for deposit, inactivity, or withdrawal, but it has exchange connection fees, which is reasonable.
Investment decisions are always full of risks. Such decisions must be made with great caution. Take time to review your broker and make an informed decision. You wouldn’t regret it.
