DEGIRO Review

Company Background & Regulation

Founded in 2013, DEGIRO has quickly established itself as a significant player in the online brokerage industry. Originating from the Netherlands, the company was launched by a group of former employees of another established brokerage firm, BinckBank. DEGIRO's founding vision was to democratise investing by providing retail investors with access to institutional-grade trading platforms and low-cost trading opportunities. Its rapid growth and innovative approach have allowed it to expand its services across Europe and further afield.

DEGIRO is now a part of the flatexDEGIRO Bank AG group following a strategic acquisition by the German fintech company flatex AG in 2020. This acquisition has further strengthened DEGIRO’s position in the market, enabling it to leverage flatex's extensive resources and banking infrastructure. The combined entity has become one of the largest online brokers in Europe, catering to over one million clients. This merger has been instrumental in enhancing DEGIRO's service offerings, supporting its mission to provide low-cost, high-quality trading services to investors across the globe.

In terms of regulatory compliance, DEGIRO operates under the supervision of several regulatory authorities. In the United Kingdom, DEGIRO is authorised and regulated by the Financial Conduct Authority (FCA) under the reference number 595455. This ensures that DEGIRO adheres to strict regulatory guidelines designed to protect investor interests and maintain market integrity. Additionally, being part of flatexDEGIRO Bank AG, the broker is also subject to the oversight of the German Federal Financial Supervisory Authority (BaFin).

DEGIRO places a strong emphasis on client fund protection. Client funds are segregated from the company’s own funds to ensure that they are protected in the unlikely event of the broker’s insolvency. Furthermore, DEGIRO's clients are covered by the Dutch Investor Protection Scheme, which offers compensation of up to €20,000 per eligible investor. This provides an additional layer of security, ensuring that clients can trade with confidence knowing their investments are safeguarded under European regulatory standards.

Trading Fees & Spreads

One of DEGIRO’s most compelling features is its highly competitive trading fees. The broker is renowned for offering some of the lowest commissions in the industry, starting from as little as €1 per trade. This pricing strategy is particularly attractive for cost-conscious traders who are looking to maximise their returns by minimising their transaction costs. DEGIRO’s fee structure is transparent and straightforward, with no hidden charges, making it easier for traders to understand the costs associated with their trades.

In terms of spreads, DEGIRO operates a zero-spread model for its trading instruments. This means that the broker does not impose any additional spread on top of the market spread. Instead, DEGIRO charges a fixed commission per trade, which varies depending on the asset class and the specific market being traded. For instance, trading in US stocks incurs a fee of €0.50 plus USD 0.004 per share, while trading in ETFs is free under certain conditions. This model can be advantageous for traders who prefer a transparent and predictable cost structure.

DEGIRO does not charge overnight swap rates because it does not offer leveraged trading products. This absence of leverage is a notable distinction from many other brokers, as it aligns with DEGIRO’s focus on providing straightforward, low-cost access to a broad range of markets without the complexities and risks associated with derivative products. As a result, clients can maintain their positions without incurring additional costs, which can be a significant advantage for long-term investors.

When it comes to account maintenance, DEGIRO stands out by not imposing any deposit or withdrawal fees. This is a considerable advantage as it reduces the overall cost of trading and improves accessibility for investors who wish to manage their funds actively. However, DEGIRO does charge a currency conversion fee of 0.25% of the transaction value for trades in foreign currencies. Unlike some competitors, DEGIRO does not impose inactivity fees, making it an attractive option for investors who may not trade frequently. In comparison to other brokers, DEGIRO’s overall fee structure is highly competitive, particularly when considering the absence of inactivity fees and the minimal trading commissions.

Trading Platforms & Tools

Web Platform

DEGIRO offers a proprietary web-based trading platform designed to provide a streamlined and efficient trading experience. The platform is accessible via any modern web browser, eliminating the need for downloads or installations. It provides access to over 50 global stock exchanges, allowing users to trade a wide array of securities including stocks, indices, and commodities. While the platform features a clean interface and user-friendly navigation, it lacks some advanced functionalities found in more sophisticated trading software.

The platform includes basic charting capabilities, enabling users to perform technical analysis with ease. While the charting tools are somewhat limited compared to other brokers, they include essential features such as drawing tools and multiple time frames. However, advanced indicators and customisable charts are not part of the offering, which may not satisfy experienced traders who rely on in-depth technical analysis.

Mobile Platform

DEGIRO’s mobile trading app mirrors the simplicity and functionality of its web platform, making it easy for traders to manage their investments on the go. Compatible with both iOS and Android devices, the app offers a seamless experience with real-time data, order execution, and portfolio management. Key features include a straightforward design, ensuring that users can quickly navigate through their holdings, watchlists, and order history.

The mobile app supports the same range of order types as the web platform, including market, limit, stop limit, and stop loss orders. However, similar to the web platform, the mobile app does not offer advanced charting tools or customisable indicators, which may be a consideration for traders who require comprehensive analytical capabilities while trading from their smartphones.

Order Types and Alerts

DEGIRO supports multiple order types, catering to various trading strategies and risk management needs. The available order types include market orders, which are executed at the best available price; limit orders, which allow traders to specify the maximum or minimum price they are willing to accept; stop limit orders; and stop loss orders, which help in mitigating potential losses. This variety ensures traders have the flexibility to execute their trades according to their specific plans.

While DEGIRO provides the basic suite of order types, it does not offer a wide range of advanced order features such as conditional orders or trailing stops. Additionally, the platform does not support automated trading or algorithmic strategies through APIs, which could be a limitation for traders looking to implement complex trading systems or integrate third-party tools.

Third-Party Integrations

One of DEGIRO's limitations is the lack of third-party integrations. Unlike some competitors, DEGIRO does not offer direct connections with advanced trading software or additional analytical tools. This absence may deter professional traders who rely on specialised software for data analysis, backtesting, or trading automation. However, DEGIRO’s focus remains on providing a cost-effective trading solution with low commissions, which appeals to cost-conscious investors.

For traders looking for extensive research and analytical tools, DEGIRO’s basic offering might require supplementing with external resources. The platform does include a news feed and basic market data, but it does not provide in-depth research tools or advanced analytics, which is an important consideration for traders who require detailed market insights.

Account Types & Minimum Deposit

Account Tiers

DEGIRO offers several account types tailored to different investor needs: Basic, Active, and Trader accounts. Each account type comes with varying levels of service and access to specific features. The Basic account is designed for investors who prefer to trade without the use of leverage. The Active account offers limited leverage, providing slightly more flexibility for traders who want to enhance their potential returns. The Trader account is geared towards experienced investors, allowing higher leverage and access to additional trading features.

Despite the differences in leverage and trading capabilities, all account types benefit from DEGIRO’s low commission structure, starting from €1 per trade, and access to a broad range of global markets. However, DEGIRO does not offer an Islamic account, which could be a limitation for traders seeking Sharia-compliant investment options.

Minimum Deposit

One of DEGIRO’s standout features is its lack of a minimum deposit requirement. This makes it accessible for investors of all sizes, including beginners who may not want to commit substantial capital upfront. The absence of a minimum deposit requirement aligns with DEGIRO’s mission to make investing accessible and affordable for everyone. This feature, combined with its low commission rates, positions DEGIRO as an attractive option for cost-conscious investors.

Despite no minimum deposit, DEGIRO requires users to maintain a cash balance sufficient to cover any fees, including those related to trading and currency conversion. While there is no charge to open an account, investors should be mindful of potential costs associated with their trading activities.

Supported Deposit Methods

DEGIRO supports a limited range of deposit methods, focusing mainly on bank transfers. This choice reflects the broker’s aim to minimise costs and streamline operations. While bank transfers are secure and widely used, the lack of alternative deposit options such as credit or debit cards, e-wallets, or online payment systems might be inconvenient for some users.

Deposits are typically processed within a few business days, but the timeframe can vary depending on the user's bank and location. DEGIRO does not charge fees for deposits, but traders should be aware of any fees their bank may impose for international transfers or currency conversion, especially if funding the account in a currency other than the euro.

Markets & Instruments

DEGIRO offers a wide range of markets and instruments, catering to various investor needs. The platform provides access to over 50 global stock exchanges, including major bourses such as the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), and Frankfurt Stock Exchange (Xetra). This extensive reach allows investors to trade a vast array of stocks across different regions and sectors. DEGIRO covers a comprehensive list of asset classes, which include equities, indices, ETFs, bonds, and options. However, it notably lacks offerings in forex and cryptocurrencies, which may deter traders specifically interested in these markets.

In terms of specific instrument availability, DEGIRO offers thousands of equities and ETFs for traders to choose from. Their platform also supports trading in over 5,000 bonds and 1,000 options contracts, providing a broad spectrum of investment alternatives. The focus is primarily on traditional and exchange-traded assets, making it an ideal platform for those looking to invest in well-established financial instruments. The absence of forex and cryptocurrency trading is a significant limitation, particularly in an era where digital assets are gaining prominence.

One of DEGIRO's unique offerings is its low-cost access to international markets, which is facilitated by its competitive commission structure. The broker is renowned for its low trading fees, which start from as low as €1. This feature, combined with the absence of an account minimum, makes DEGIRO a suitable choice for cost-conscious investors and those new to trading who wish to explore global markets without significant financial commitment.

Safety & Security

Safety and security are paramount for DEGIRO, and the broker has implemented several measures to protect client funds and data. Client funds are segregated from the company's operational funds, ensuring that client assets are protected in the event of financial instability within the company. This segregation is a regulatory requirement that DEGIRO complies with under the supervision of the Financial Conduct Authority (FCA) in the United Kingdom, which is known for its stringent regulatory standards. However, it is important to note that DEGIRO does not offer negative balance protection, which could expose traders to losses exceeding their initial investment.

DEGIRO employs robust cybersecurity measures to safeguard client information and ensure the integrity of its trading platforms. The broker uses advanced encryption protocols and two-factor authentication (2FA) to enhance platform security and protect against unauthorised access. Despite its strong European presence and adherence to regulatory standards, DEGIRO's security framework lacks some features that are standard in more comprehensive trading platforms, such as insurance against cyber breaches or fraud. Nevertheless, its regulatory history is solid, with no major incidents reported that could undermine trader confidence in the platform.

Who Is DEGIRO Best For?

DEGIRO is best suited for investors who prioritise low-cost trading and access to a wide range of international stock markets. Its low commission structure and zero account minimum make it an attractive option for cost-sensitive traders, particularly those entering the financial markets for the first time. Investors who are keen on trading European and American equities, ETFs, and bonds will find DEGIRO's offerings comprehensive and competitively priced. Additionally, the platform's user-friendly interface is well-suited for beginners and casual investors seeking a straightforward trading experience without advanced technical features.

However, DEGIRO is not ideal for traders who require exposure to forex and cryptocurrencies, as these markets are not available on the platform. The absence of an ISA wrapper for UK investors is another limitation, as it restricts tax-efficient investment options. Furthermore, active traders and those who rely heavily on in-depth research and analysis tools may find DEGIRO's basic research offerings insufficient. The platform is better suited for investors with a focus on long-term asset accumulation rather than frequent trading.

In conclusion, DEGIRO is an excellent choice for investors seeking low-cost, efficient access to a broad array of traditional financial instruments across global markets. It is particularly beneficial for those who are comfortable with a more straightforward platform and do not require access to more niche or volatile assets such as forex or cryptocurrencies.

• Ideal for cost-sensitive investors looking for low commissions and no account minimum.
• Best for traders interested in international stocks, ETFs, and bonds.
• Suited for beginners and casual investors who prefer a user-friendly platform.
• Not ideal for those seeking exposure to forex or cryptocurrencies.
• May not meet the needs of active traders requiring advanced research and analysis tools.
• Less suitable for UK investors seeking tax-efficient investment options like an ISA.