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DEGIRO Review 2021: A low-cost EU Broker you can really trust

DEGIRO has managed to build a reputation for itself as one of the best cost-efficient Brokers for European investors, offering them investment opportunities with very low fees! It is a trusted name in stock trading based in the Netherlands. It was founded in 2008, and opened in 2013 to retail clients.

Within a short period of time, DEGIRO managed to accomplish its goal to create an online brokerage platform that is affordable for users making trading stocks as simple as possible. It has grown to be one of the leading retail stockbrokers in Europe and has expanded its online trading platform across 18 European countries with over 2 million accounts.

DEGIRO also provides access to a vast range of investment options worldwide including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, warrants, and many more.

⮕ DEGIRO At A Glance

DEGIRO stands out of the competition as the best discount broker with its super low fees in all types of investment products. Unlike most other brokers, DEGIRO offers free of charge most of its non-trading services like withdrawal, deposit, and inactivity, making it an ideal broker for long-term investors. Its trading account opening process is quite quick and easy, and the trading platform and mobile app are well-designed and user-friendly. It is licensed by major top-tier financial authorities in Europe, guaranteeing that your money is in safe hands. DEGIRO also takes care of beginners, offering a collection of quality educational resources providing all the necessary information & tools to those who are just starting out.

Invest with super low fees

Invest with super low fees

best discount broker

⮕ Investment Products Offered By DEGIRO

When searching for the perfect online broker tailored to your needs, you surely want a platform that gives you access to a variety of investment products and services. For example, if you are more of a long-term passive investor, you may only need access to Exchange Traded Funds (ETFs). But if you are more of an active sophisticated trader, you may want access to futures and other advanced instruments.

DEGIRO opens up a whole new world of trading giving you access to a vast array of investing instruments. Make no mistake about it. DEGIRO is home to one of the largest asset libraries in the online investment universe. This covers 50 markets in 30 countries. The full list of DEGIRO products and order types includes:

  • Stocks
  • Bonds
  • Exchange-traded funds (ETFs)
  • Futures trading
  • Options
  • Investment funds
  • Warrants
DEGIRO Stock Markets

DEGIRO offers access to more stock exchanges than the typical investor might want. You can invest in shares in 30 stock exchanges: 22 Stock Exchange from Europe, four from North America, and four from Asia and Oceania. They have access to the most important stock exchanges in the world.

As for bonds, the choice is a little bit more limited. You can trade in bonds from 6 European Stock Exchanges, but they are the largest ones.

You can invest in ETFs on 19 different stock exchanges. You have access to 17 of the best European ETFs as well as those on two exchanges in Asia and Oceania. 

You also have access to advanced instruments. You can trade futures in 14 different exchanges. And you can also trade options in 12 different stock exchanges.

Overall, DEGIRO offers access to an extensive range of investment products that could satisfy every European Investor.

⮕ Pros & Cons

Before diving more into the platform’s features and what we found most interesting, let’s take a break to sum it up in the good, old Pros and Cons way.

Pros

✅ Easy-to-use platform & mobile app

✅ Wide range of investment products

✅ Quick & easy account opening

✅ Extremely low commission structure

No min. deposit, inactivity, or withdrawal fee

✅ Education material: Investor’s Academy and Investing with DEGIRO

✅ Transparent and totally secure broker

Cons

Doesn’t offer investment products that are believed to show higher volatility

❌ Doesn’t offer contract-based investment products

❌ No demo account

 

⮕ Account types

DEGIRO’s online platform allows you to invest through five account types. Depending on your experience and needs as a potential user, you can choose between:

DEGIRO Account Types
  • Basic Account: It is the default account and the most versatile. It is ideal for users who wish to invest over the long term. In this type of account, you have access to every feature except for options that benefit quick & high frequency moves.
  • Active Account: This account is designed for short-term investors. This account in contrast with the basic account, features options that benefit quick & high frequency moves.
  • Trader Account: This account is also designed for short-term investors. The only difference between Active and Trader Accounts is that Trader Account is optimal for users who prefer to invest through scalping – a strategy of making high volumes off small profits by profiting off of small price changes
  • Day Trader Account: This account is destined for more experienced traders with extensive knowledge of how to trade. It is ideal for short traders ready to engage with a high degree of risk.
  • Custody account: This is more of a deposit fund. It is used as an entry-level account for new investors. The main difference between this type of account compared to the other four is that DEGIRO cannot lend your shares to other investors. This adds an extra layer of security but also implies higher maintenance and withdrawal fees.

Opening an account on DEGIRO

Opening an account with DEGIRO is a super easy and straightforward process. It’s completely online and no initial deposit is needed. Your account will be open probably within one day with a maximum of 2 to 3 days. You will just need to fill their forms, and then upload a copy of your ID card or passport. You’ll also need to provide the IBAN of the bank account you want to use for deposits and to receive withdrawals.

DEGIRO Account Opening

Once the account is ready, the only thing that is left is for you to confirm that you are aware of risks coming with investing, accept their terms & conditions, and finally deposit some money on the platform.

Demo Account

Unlike other brokers, DEGIRO does not offer a demo account to experiment with its platform. However, we could say that in DEGIRO’s case it is not really necessary. To put it simply, in order to open a DEGIRO account, you simply need to make a deposit of 0.01 Euro.

This means that starting to invest in this broker is practically free. So it is possible for newcomers to start experimenting on the site through a real account, without having to risk their money.

⮕Is my money safe with DEGIRO?

The question that every investor should ask themselves when selecting a broker is: will my money be safe? In any case, you do not want your investment to sit with an unsafe broker. What you need to know beforehand is firstly the background of the platform and secondly, if something bad happens that the broker gets you covered.

Let’s start with the background. The reputation of a broker is essential. You do not want to store your hard-earned money with an untrustworthy broker. DEGIRO is a broker duly regulated and supervised by competent authorities.
To begin with, DEGIRO is not just another trading platform. The company that trades under the name DEGIRO is flatex DEGIRO Bank Dutch Branch, the Dutch branch of flatexDEGIRO Bank AG. The fact that we are talking about a bank alone, adds to the sense of security for DEGIRO users.
As a German regulated bank, flatexDEGIRO Bank AG is primarily supervised by the German financial regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), and falls under the indirect supervision of the European Central Bank (ECB). In the Netherlands, the Dutch Central Bank (DNB) – on the public register of which, DEGIRO is registered – is tasked with integrity supervision of DEGIRO and falls under supervision by the AFM.

In addition, since its launch in 2008, DEGIRO  has won over 80 international awards, for both the services provided and the customer support offered.

DEGIRO International Awards

Now let’s see what happens if the company gets a turn for the worse. Being part of the German Deposit Guarantee Scheme, any money deposited on a DEGIRO Cash Account with flatexDEGIRO Bank AG will be guaranteed up to an amount of EUR 100,000.
Another important thing here is that stocks and ETFs on the platform are exchange-traded, meaning that even if DEGIRO goes bankrupt, your assets will be safe as you are the owner of the stocks and ETFs you buy via DEGIRO. In the unlikely event that the segregated assets cannot be returned to clients, DEGIRO falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of EUR 20,000).

The other thing you want is Two Factor Authentication (2FA). It is imperative to secure your account. DEGIRO also has two-step authentication available on their platform, which it is recommended to activate to keep your account safe in case your password gets compromised.

All in all, DEGIRO is well-regulated. They are taking measures to protect your money, and the asset segregation system is reliable.

⮕DEGIRO Fees & Commissions Structure

Fees on DEGIRO are very low! This is one of the main goals of the company to make investing in the stock market as affordable as possible. So it’s not strange at all that DEGIRO has earned a reputation for offering the lowest rates (even up to 80% less than other brokers)  in the market.

DEGIRO as the best discount broker

In general, there are two types of fees that every broker charges to their clients: Trading fees and Non-trading fees. Let’s see how that lies with DEGIRO fees & commissions structure.

Trading Fees

Trading fees include broker commissions, financing rates, conversion fees, and spreads. These fees are charged when the assets are traded by the client. However, the maximum charge per trade that you’ll get with DEGIRO is £5.00 where the trader has to pay £1.75+0.014%. And the best part? DEGIRO offers commission-free trading on US stock exchanges. How crazy is that? 

Of course, the fee structure varies according to the instruments. For more detailed info on DEGIRO’s commission structure click here.

Non-Trading Fees

Non-trading fees are not related to trading activity. Non-trading fees include withdrawal fees, inactivity fees, and deposit fees.

Guess what? DEGIRO allows its clients to transfer money to their trading accounts completely free of cost. What’s more? 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. What DEGIRO also offers compared to other brokers is that it does not have inactivity charges in its fee structure. That makes it, for example, a perfect platform for long-term value investing as you don’t make trades that often.

Exchange Connection Fees (Connectivity Fee)

DEGIRO charges connectivity fees for trading beyond 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 beyond the home market, such as the 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.

Commission Free ETFs

DEGIRO offers free ETFs

And there is something even better with DEGIRO: You can trade some ETFs for free! Every month, you can make one trade (buy or sell) for one of the free ETFs that it offers. If, during the month, you make another trade in the same direction for the same ETF, it will also be free. If your portfolio is mostly in free ETFs, you will significantly reduce your fees.

(*conditions apply – see DEGIRO’s site for more information)

Why is it so cheap?

DEGIRO is cheap for a reason and that’s because they allow other investors to operate with your shares. DEGIRO manages to incur savings by lending the shares of its clients through the Basic, Active, and Trader accounts. Do you know what this means? The broker leaves the shares of its clients to other investors so that they can operate with them (Generally what they do is to sell by betting on the downside). They also have the Custody account in which they do not incur in these types of practices but rather include certain commissions such as collecting dividends.

⮕ Educational Resources & Tools

If you are new to the investing universe and you want to get to grips with some basic concepts, then DEGIRO offers a collection of quality educational resources through its dedicated portal “Investor’s Academy”. It is the best tool to learn or refresh your knowledge.

DEGIRO Resources & Tools

DEGIRO offers its clients a series of video tutorials on how to use the platform and invest in trading. The videos are very well done and very concise when giving information to those who are just starting out. These tutorial videos and blogs are aimed at orienting new investors with the trading environment and its WebTrader platform.  There you will learn how investing works, which products you can invest in, and what strategies you can use. And once you are ready, you’re welcome to apply your trading knowledge taking advantage of the easy-to-use tools of DEGIRO’s Web trader. Some of the topics the DEGIRO Investor Academy covers include:

  • What kind of investor are you?
  • What is a broker?
  • Basic financial products
  • Complex financial products
  • What determines the price of a stock?
  • Choosing your first stock
  • Order types
  • Spreading risk is the key
  • Thinking ahead
DEGIRO Investor Academy

⮕Customer Support

Although DEGIRO is a broker that does not have many ways of contacting, the opinions of the users agree that they are very efficient. This is because DEGIRO staff have real knowledge about trading and about the use of the broker’s platform.

DEGIRO Customer Support Service

In case you need to contact DEGIRO staff, you can do it by phone from 8:00 am to 10:00 pm during weekdays. It is also possible to access customer service via email 24 hours a day, 7 days a week. I reassure you that their response is prompt! They also provide customer service in 18 languages, so there are no worries if you don’t speak Dutch or German. If on the other hand, you are in need of a more immediate answer, feel free to check out their Help Center for the answers to frequently asked questions.

DEGIRO Help Center

Not to mention that DEGIRO has won awards for its customer service, so it’s clearly doing something right!

⮕Platform Usability

From the first look of DEGIRO’s platform you’ll realize that DEGIRO invests a lot in  simplicity and usability of its features. This is evident from its trading platform. It is available in browser-based web and mobile platform with ease-of-use and functionality in mind. The interface is quite intuitive and straightforward making it ideal even for beginners.

DEGIRO Interface In All Devices

Web Trading Platform

You really don’t need to download any program or application to start trading online with DEGIRO from your computer. The company itself created a platform from which you can trade directly from the web.The interface of their web trading platform is really clean and responsive, and even for a newcomer, it is really easy to start buying and selling stocks on the platform. DEGIRO WebTrader comes with all the basic features that an ideal trading platform should have. 

DEGIRO Portfolio View

Anyone can tell that DEGIRO has focused on improving the trading experience with integrated design features. The trader has a clear overview of his portfolio and transaction list, along with real-time market news and updates. Not to mention that the web platform is available in your local language. For example, if you register from the Netherlands, your platform language will be Dutch.

Mobile Trading App

If you’re fond of on the move trading then you might want to download the DEGIRO app. This allows you to perform most of the same account features as you will find on the main website. Similar to WebTrader, DEGIRO Mobile App allows users to access their portfolio and transaction lists with ease. They can get real-time market updates as well. 

DEGIRO Mobile Portfolio View

Most DEGIRO trading app users argue that it is one of the simplest and most efficient platforms. With fast navigation and easy-to-understand design. With the mobile application, you can perform all the operations available to the broker in real time. The DEGIRO app is available for both iOS and Android. In this sense, it is possible to trade and operate in the broker from any smartphone or tablet. The only requirement is to have access to the Internet.

⮕Is DEGIRO Right For You?

DEGIRO’s greatest success is that it managed to minimize the fee structure without compromising on the services it offers. DEGIRO is a good fit for most investor types, including traders. When you talk about DEGIRO, you are talking about an ideal broker for retail traders who choose to invest in bonds, ETFs, derivatives, stocks, and funds. 

Their highly competitive commission structure and a wide portfolio of investment options make it a great choice for beginners, as well as for more experienced investors. This has made them become one of the largest brokers in Europe, reaching over 2 million clients.

The use-friendliness of the platform in combination with its hassle-free format make it an attractive choice for both beginners and experienced traders. If you are more of a long-term investor surely you’ll feel like home with DEGIRO. Investors with a long time horizon will agree that the most important thing is to keep your costs as low as possible in order to have maximum benefit from the compounding effect. And that is something that DEGIRO really offers!

💡Remember : 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.

*Every month, you can make one trade (buy or sell) for one of the free ETFs that DEGIRO offers. Zero non-trading fees apply. Other fees may apply. Make sure you understand the risk of losing your capital before investing.

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