DEGIRO Broker Review

Review By: Alan Little

Review Updated: 2022-07-26

4.2

Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products which match your knowledge and experience.

Bottom Line Summary

Degiro revolutionized stock trading for retail investors across Europe, slashing fees and commissions to the bone. After its recent merger with flatexDEGIRO AG, it now has a client base of more than two million and is the undisputed largest online stockbroker in the European Economic Area. It also has a bank and is publicly traded on the SDAX, Germany’s exchange forum for small to mid-cap stocks. It also claims to be one of Germany’s 160 largest traded companies. Degiro is many things to many people with proprietary systems and well-capitalized support infrastructure, but it is not a forex broker. Trading in currency pairs is confined to experienced options traders and not offered to retail forex traders.

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DEGIRO broker features

DEGIRO pros and cons

Pros

• Largest online low-cost/commission stockbroker in the EEA
• Listed on the SDAX in Germany (70 small to mid-cap stocks)
• Broad access to global stock exchanges, ETFs, bonds, futures and options
• Garnered many awards, especially for Customer Service

 

Cons

• No trading in forex except for experienced option traders
• No demo account
• Restricted crypto offering
• No US citizens accepted

 

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Review Sections:

Who are Degiro?

Degiro was the brainchild of five employees who left BinckBank in 2008 to provide better service to the burgeoning professional market. Investors had been expanding their horizons in search of better returns by increasing the percentage of foreign investments in their respective portfolios. Degiro caught this wave and prospered by slashing fees and providing global access.

In 2013, the firm expanded to include retail investors, providing the same low-cost access to global markets. It has always been a Dutch firm, but its footprint grew to include 18 countries within the European Economic Area, and it began offering services in the UK in 2015. In December 2019, it was acquired by flatex AG, a prominent German online stockbroker, and by July 2020, the new flatexDEGIRO AG and Bank was born.

Degiro now claims to be the largest online execution-only broker in Europe and owns its own banking license. Heavy regulation and the transparency of being publicly traded on the SDAX exchange in Germany have attracted a broad client base of 2+ million customers. Its Press page forecasts seven million European clients by 2026 with an annual turnover of 250 million transactions. The success story of Degiro continues unabated.

DEGIRO Fees

4.8

Degiro revolutionized the way traditional stockbrokers charge fees for their services in Europe. It went for a slimmed-down version and to be the lowest cost firm in the process. Fees follow a typical banking transactional model where you pay for the service in the same way that Degiro is charged by its exchange providers. There may be contract fees and commissions, which tie back to exchange. The firm does publish these fee models, which can be very complicated since you are dealing with buying the asset, not making a simple CFD deal with your broker.

Within this context, you can be assured that you are getting the lowest possible cost and not subsidizing another trader with a higher trading volume. There will be fee pass-throughs and connect fees, but Degiro does make every effort to disclose them upfront. There are no account, inactivity, deposit, or withdrawal fees, but there may be a small conversion fee if your base account’s currency differs from the exchange-related asset purchase.

Accounts/Membership Levels

4

As a bank, your Degiro account will necessarily relate to the level of support requested from the bank. At the lowest level is a Custody account with limited privileges. The Basic account is next, but it may not be what a trader wants since it cannot use margin, go short, or trade options or futures. An Active account will access these other features. A Trader account will double the amount of margin available, and a Day Trader account will expand on margin even further.

Fee levels do not vary by account, and there is no minimum deposit amount. There are also nine base currencies, but you must have a bank account in that currency. Degiro will also automatically open an account with its bank for you to segregate your deposits from the firm’s operating funds. Local compensation funds also add additional protection. Opening an account can be quick but using the firm’s app is recommended. A valid ID and a selfie picture from a smartphone will suffice, but you must be over 18 years of age.

Deposit and Withdrawal

3.5

Unlike forex brokers, Degiro is limited in deposit and withdrawal options. It only supports banking transfers, and your resident account must be in the same name as your Degiro account. It does not accept credit or debit cards, but in some cases, an electronic wallet will suffice. You must have a bank account in the SEPA zone. Degiro supports up to nine base currencies, including the Euro and several other Euro Zone currencies.

There are no fees for opening an account, making a deposit, or withdrawing funds. The process for making a withdrawal is as simple as selecting the Transfer option on the website or your phone app. If bank account information is up to date, a transfer will be quickly initiated. Note that delays may occur related to banking intermediaries and their processing of your transfer request.

Trading Platforms

4

If you are looking for MT4 or MT5, you will not find either at Degiro. What you will find is a very user-friendly trading platform that can easily access trading markets and perform execution orders quickly and in the manner you choose. Buying and selling screens provide all the necessary information in full view, which can be quickly accessed with the Fast-Trading function key. The firm takes great pride in its internally developed trading platform and continually upgrades the software to provide more features and functionality. It has also won many awards in this area, but our Degiro review revealed that there is no demo platform.

Mobile Trading App

5

Degiro’s mobile app mirrors the features and functionality of its desktop version. It, too, is user-friendly and provides real-time reports and quick access to trading markets. Professional traders have also been impressed with the app’s functionality, and it has garnered several industry awards for its excellence. The app can easily be downloaded for free for Android and iOS devices.

Markets and Products

4.5

Degiro is a traditional stockbroker, not a forex broker. It does not offer CFD trading, and forex trading is limited to options and futures. Degiro trading does access exchanges across the globe, enables direct asset purchases, and allows Degiro to maintain your ownership in its portfolio management system. Its mission is to empower investors, and it does so by giving them a connection to whatever asset class works for them, especially those outside the confines of Europe and the US.

An investor may buy stocks, ETFs, bonds, and structured funds. If your status is deemed experienced, you may also qualify for options, futures, and structured products. A recent addition has been in the cryptocurrency arena. As cryptos gained popularity and acceptance, Degiro elected to participate in this exciting market, but not in the traditional sense. You cannot buy Bitcoin directly at Degiro, but you can buy into what it calls crypto trackers. These funds can be ETFs or ETNs offered by the largest and most respected issuers.

Market Research

3.7

Degiro provides limited research for its clients. It does provide fundamental information about stocks and other offerings, but trading insights consist of infrequent blog postings. It offers basic instructional information, but you might be better off accessing your trading ideas from other Internet sources, as that is the direction the industry has taken to offer low-cost access to asset acquisition.

Customer Service

4

Degiro has also won awards for its Customer Service, although it does not offer Live Chat, a standard with most brokers but not banks. Response rates are quick, and the firm goes out of its way to provide an abundance of helpful FAQs on its website. More toll-free phone lines would be appreciated, although email response rates were quick and effective.

Address: Rembrandt Tower - 9th Floor, Amstelplein 1, 1096 HA Amsterdam, the Netherlands
Millenium Centre (Floor 15), 89B Vitosha Boulevard, 1463 Sofia, Bulgaria

Phone: (+31) 20 261 3072

Email: clients@degiro.ie
press@degiro.ie

Education

4

Degiro does have a rather extensive Investor’s Academy on its website. Its knowledge tab attempts to get beginners off in the right direction when getting started by determining what kind of investor you are. There is also data about products and strategies.

Safety

Dealing with a bank as well as with a brokerage agency always equates to a double level of strict regulatory oversight. In addition to this safety umbrella, you will also have the satisfaction that Degiro is a publicly traded company on Germany’s SDAX, requiring additional regulatory compliance. The central bank of the Netherlands, the local regulator, AFM, and BaFin in Germany ensure a high level of safety, and the FCA has licensed the firm to operate in the UK, as well.

All deposits are segregated within a separate account opened for you with Degiro Bank, and banking deposit insurance and regional compensation programs add more assurance that you will not incur a financial loss if there is ever a problem with the bank. As a bank, capital adequacy is heavily regulated, and public transparency, as a publicly traded company, will give you access to financial reports for the entire entity on a regular basis.

Is Degiro regulated?

Degiro complies with Top Tier regulatory oversight from the Dutch central bank (DNB) and regulatory authorities in the Netherlands (AFM), as well as from BaFin in Germany. It is also registered and complies with the FCA in the UK.

Verdict – Is Degiro right for you?

If you are looking for a traditional stockbroker, i.e., no CFDs, known for low fees and direct access to global exchanges, then Degiro may be the broker for you. You have the safety of dealing with a publicly traded company that also has a financial institution connected with it. You have regulatory protection and the transparency afforded by being associated with a company on the SDAX. Support is excellent, but its proprietary system may not provide features that some professionals would expect. The firm has over two million clients and expects to grow to seven million by 2026. They must be doing something right, and you may want to join the wave.

Alternatives to DEGIRO

Our Degiro broker review determined Degiro to be a safe, experienced firm focused on the European Economic Area. It is a low-cost stockbroker that offers trading in stocks, ETFs, bonds, leveraged products and derivatives, but not foreign currency pairs. The firm is a large banking conglomerate traded as a public company on the SDAX in Germany. If they are not what you are looking for, then here are five other firms that are regarded as the best in the breed:

• eToro: Large global broker with an active fan base, known for copy trading community
• IG Group: Large LSE broker with something for everyone, CFDs and spread betting
• Plus500: Another London Stock Exchange firm that has specialized in CFDs, global
• Pepperstone: Beginners and veterans flock to this perennial favorite for service
• AvaTrade: Heavily regulated broker, HQ in Dublin, Ireland, Forex and CFD broker

If you are a beginner and would like additional support when looking for your first forex broker, we can also help you in your search.

FAQ

Risk Disclaimer

Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products which match your knowledge and experience.

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