DEGIRO Review
Broad product range, low prices
Pros
- Low fees
- Broad range of investments
- User-friendly trading platform
Cons
- Limited fundamental analysis
- Securities lending
Contents
10.
Introduction
DEGIRO is one of the cheapest brokers in the United Kingdom (The Telegraph). DEGIRO is based in the Netherlands and was founded in 2008. Looking at the number of transactions, DEGIRO is one of the largest broker of the UK. DEGIRO is cheap because they lend securities and they say they have less overhead costs than competitors. They also have developed the trading platform themselves.
How is DEGIRO regulated?
DEGIRO is supervised by Netherlands Authority for the Financial Markets (AFM) and under prudential supervision by the Dutch Central Bank (DNB). In the UK, DEGIRO is regulated by the Financial Conduct Authority (FCA). DEGIRO has its registered office and statutory seat located in Amsterdam. DEGIRO is registered with the Chamber of Commerce and Industry in Amsterdam under number 34342820.
Customers are generally positive about the service, costs and clarity of the trading platform. On Trustpilot they get a score of 3.7/5 which is good.
Securities lending
If you want to be sure that your investment is not lended to third party, choose the Custody account. In this account, securities are not lent to a third party. So you do not run the risk of losing your securities if this party goes bankrupt. If DEGIRO goes bankrupt, your funds are with a separate custody company. This means you won't lose your money in case of a bankruptcy of DEGIRO.
Trading instruments
DEGIRO's trade offer is very broad. You can invest on more than 50 exchanges worldwide, such as Euronext, Xetra, Nasdaq or NYSE. You get free real-time rates on most European stock markets. At DEGIRO you can invest in shares, ETFs, leveraged products, bonds, options and futures, investment funds.
Stocks
Options
Futures
Funds
Bonds
ETFs
Trading platform
The possibilities for fundamental analysis are limited. There are a few key figures per company to base an investment decision on. With 25 indicators for technical analysis, the possibilities are good. The investment platform offers 4 different order types: Limit, Market, Stop Limit and Stop Loss. You cannot use price alerts. In addition to the webtrader, you can also use the mobile app. The app is well-arranged and offers everything to invest quickly and easily on the move.
DEGIRO also offers an "Investor's academy" where you have the necessary education at your disposal. It is very clear and there are nice illustrations for easy understanding. In addition, a number of videos are available on how the investment platform works.
With this broker you can choose from different accounts. Except in the Custody account, DEGIRO has permission to lend your securities (“Securities lending”) to third parties. This gives, for example, the option of going short on options. However, it also entails the risk of losing investment assets if a third party goes bankrupt. When opening an account you start in the Basic account. You can then choose to switch to the Custody, Active, Trader or Day trader account. The differences between the accounts are shown in the table below.
- Derivatives
- Leveraged products
- Margin trading
- Go short
- Free real-time London Stock Exchange
- Dividend processing
- Trade with high risks
- Fees
Custody
- No
- €1 + 3%
Basic
- No
- Free
Active
- Till 50% of available margin
- Free
Trader
- Till 100% of available margin
- Free
Day trader
- Till more than 100% of available margin
- Free
Fees and commissions
DEGIRO is one of the cheapest stocks and funds brokers. Below, common transactions with associated transaction costs from different brokers are compared. The amount of service fee or custody fee of different brokers is also compared. Check out the comparison page for a complete fee comparison of all brokers.
Shares £1.000
Shares £10.000
Service fee £10.000
£1.89
£3.15
£0
£2.95
£2.95
£0
£11.95
£11.95
£0
£7.99
£7.99
€9.99 PM
£9
£19
£12 PM
Investing involves risks of losses.
- Low fees
- Investment product range
- Analysis functionalities
- Securities lending
# Active investors
400,000
Money guaranteed
£20,000
Reliability
Securities lending
Yes
Mobile app
Demo account
Minimum deposit
£1
Fees
Shares
£1.75 + 0.014%
Options
€0,75
Leveraged products
£1.75 + 0.014%
Futures
€0.75
Funds or trusts
€0-€7,50+0,10%
ETFs
€2 + 0.03%
Telephone order
£8.50
Service fee
€0
Forex
CFDs
Cryptocurrencies
Customer service
Education
Usability
Trading platform
Bank transfer
Credit card
PayPal
- Low fees
- Investment product range
- Analysis functionalities
- Securities lending
# Active investors
400,000
Money guaranteed
£20,000
Reliability
Securities lending
Yes
Mobile app
Demo account
Minimum deposit
£1
Fees
Shares
£1.75 + 0.014%
Options
€0,75
Leveraged products
£1.75 + 0.014%
Futures
€0.75
Funds or trusts
€0-€7,50+0,10%
ETFs
€2 + 0.03%
Telephone order
£8.50
Service fee
€0
Forex
CFDs
Cryptocurrencies
Customer service
Education
Usability
Trading platform
Bank transfer
Credit card
PayPal
- Ideal for fund investments
- Fundamental research
- Limited technical research
- Monthly fee
# Active investors
300,000
Money guaranteed
£85,000
Reliability
Securities lending
No
Mobile app
Minimum deposit
£1
Fees
Shares
£7.99
Options
Leveraged products
Futures
Funds or trusts
£7.99
ETFs
£7.99
Telephone order
£49
Service fee
£9.99 PM
Forex
CFDs
Cryptocurrencies
Customer service
Education
Usability
Trading platform
Bank transfer
Credit card
PayPal
- Professional platform
- Good education
- Customer service
- High minimum deposit
# Active investors
178,000
Money guaranteed
£85,000
Reliability
Securities lending
No
Mobile app
Minimum deposit
£450
Fees
Shares
£3 – £8
Options
£0.10
Leveraged products
Futures
Funds or trusts
£8
ETFs
£8
Telephone order
£40
Service fee
£24 PQ – paid commissions
Forex
CFDs
Cryptocurrencies
Customer service
Education
Usability
Trading platform
Bank transfer
Credit card
PayPal
- Many trading instruments
- Advanced platform
- Inactivity fee
- High minimum deposit
# Active investors
100,000
Money guaranteed
€100.000
Reliability
Securities lending
No
Mobile app
Minimum deposit
£600
Fees
Shares
0.10% min. £8
Options
$0.85
Leveraged products
Futures
£3
Funds or trusts
0.10% min. £8
ETFs
0.10% min. £8
Telephone order
£50
Service fee
0.12% min. £12 PM
Forex
CFDs
Cryptocurrencies
Customer service
Education
Usability
Trading platform
Bank transfer
Credit card
PayPal
* Estimated annual costs with £10,000 one-time investment, £100 monthly investment and an average investment profile. Investing involves risks of losses.