Degiro Review for Investors and Traders

Degiro is a popular online broker that offers a wide range of services for investors and traders. Degiro is a European online broker that was founded in 2008 and is headquartered in Amsterdam.

Degiro offers over 50,000 financial products, including stocks, options, futures, ETFs, and bonds, from more than 30 exchanges worldwide. This extensive selection makes it a great option for traders who want to diversify their portfolios.

Degiro's fees are competitive, with no commission fees for buying and selling stocks, ETFs, and options. This means that investors can keep more of their hard-earned money.

Degiro's trading platform is user-friendly and accessible on both desktop and mobile devices, making it easy to trade on the go.

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Degiro is a company with a rich history, having been founded in 2008 as a Dutch entity. Its headquarters are located in Amsterdam, Netherlands.

Bernd Förtsch, the founder of Flatex, is the key owner of Degiro. This connection is interesting, as it highlights the company's roots and potential for growth.

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Degiro is indeed affiliated with a bank, which is a significant advantage for its customers. This affiliation can provide users with a range of benefits, including secure transactions and access to a wider range of financial products.

Degiro's parent company is not listed on the stock exchange, which may be a factor to consider for potential investors. On the other hand, the company itself is listed on the Xetra stock exchange, with a market capitalization of €1 billion.

Degiro's financial performance is impressive, with a net income of €80 million. This success is a testament to the company's ability to adapt to changing market conditions and provide value to its customers.

DEGIRO is supervised by several regulatory bodies, including the Netherlands Authority for the Financial Markets (AFM) and the De Nederlandsche Bank (DNB).

The company is also registered with the Financial Conduct Authority (FCA) and has previously received criticism from regulators over its business practices and IT infrastructure.

DEGIRO operates under FlatexDEGIRO Bank AG, which is primarily supervised by the German Federal Financial Supervisory Authority (BaFin).

In addition, DEGIRO's Dutch branch is subject to integrity supervision by DNB and conduct supervision by AFM in the Netherlands.

DEGIRO's systems are centered around data protection and the safekeeping of clients' assets.

Here's a breakdown of DEGIRO's regulatory status across the EU and UK:

DEGIRO provides investors with a protection amount of €20,000 in the EU, and £85,000 for legacy UK accounts that signed up before 2023.

Degiro's fees are very competitive, with the exception of FX. They charge around 2€ per trade, which is significantly lower than some German banks that charge 10-20€ per trade plus monthly fees.

Degiro's fees used to be even lower, but they raised them a lot, making them less competitive than before. If you trade larger amounts, Interactive Brokers might be cheaper.

However, Degiro still offers low fees, and their trading platform is designed to be efficient and cost-effective. This approach has made them one of the largest brokers in Europe.

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If you're a frequent trader, you'll want to know about Degiro's rollover fee, which is 10.00 EUR per position transferred to or from Degiro. There's also a margin interest rate of 4.90%, calculated annually and charged monthly.

Degiro also offers discounts for certain ETF purchases. For example, one Core ETF purchase per month is charged at just €1 handling fee, contrasting with the standard €3 total fee. Subsequent Core ETF purchases have discounts for orders exceeding €1,000.

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Degiro's trading platform is suitable for all types of investors, from beginners to professionals. It's a great choice for long-term investors seeking diversification possibilities across more than 50 exchanges in over 30 countries.

The platform offers a wide ETF selection, which is continuously improved based on user feedback to ensure it remains at the forefront of industry standards. The company began as an institutional broker in 2008, servicing professional clients before launching its retail brokerage service in September 2013 across multiple European countries.

You can expect clear fee information when making a transaction, and the website is easy to use despite some minor menu confusion. The mobile website works well, so you don't necessarily need to use the app.

DEGIRO's trading platform is a great choice for investors of all levels, from beginners to professionals. The company started out as an institutional broker in 2008 and later launched its retail brokerage service in 2013.

DEGIRO's platform is continuously improved based on user feedback, ensuring it stays up-to-date with industry standards. Its wide ETF selection makes it suitable for long-term investors seeking diversification possibilities.

The platform offers a wide selection of ETFs from over 50 exchanges in more than 30 countries. This diversity is a significant advantage for investors looking to spread their risk.

Here are some key features of DEGIRO's platform:

Overall, DEGIRO's platform is a solid choice for investors looking for a reliable and feature-rich trading experience.

You can import your Degiro trades to Sharesight by uploading a spreadsheet file filled with trades from your trading account. This method is especially useful for large imports.

To get started, select Brokers at the top of the page and search for Degiro.

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If you're looking to trade options, you should be aware that Degiro doesn't offer US options, so if you need this, consider using Interactive Brokers instead.

Deposits and withdrawals with Degiro are a breeze. You can move money between your German bank account and Degiro using SOFORT, which takes just a minute.

SEPA transfers are also an option, although they may take a little longer. I've personally transferred tens of thousands of euros in and out of Degiro without any issues.

At DEGIRO, you can expect a range of features and services to help you manage your investments.

You can trade in all major EU currencies, which is convenient for those with international financial interests.

DEGIRO offers margin loans, allowing you to borrow money to invest, but it's essential to use this feature responsibly.

Some key features of DEGIRO include:

Degiro's lack of performance tracking features is a major drawback. It's impossible to see a graph of your profits over time, making it difficult to track your portfolio's performance.

You can only view daily gains/losses and total gains, which are not very helpful if you've been using the account for a long time. Total gains are essentially useless.

The app also doesn't provide a way to see how your investments have grown over time. You can only see the purchase price and the current value of your stocks.

Many users have complained about this issue, and I've been waiting since 2018 for Degiro to fix it. Unfortunately, they still haven't.

There are workarounds available, such as using a Chrome extension or a separate app like Simple Portfolio.

When trading with DEGIRO, you can expect a range of features that cater to different needs. One of the standout features is the availability of all major EU currencies, so you can easily manage your finances across borders.

DEGIRO offers a wide range of exchanges, including all major ones, which means you can trade on the platforms you're most comfortable with. This is a big plus for traders who value flexibility.

The platform also offers margin loans, which can be a game-changer for traders who want to take their investments to the next level. This feature allows you to borrow money to invest in more assets, potentially increasing your returns.

DEGIRO's reliance on external payment for order flow (PFOF) is relatively low, which means your trades are less likely to be affected by external factors. This can result in faster and more reliable execution of your trades.

Here's a summary of DEGIRO's key features:

Overall, DEGIRO's features are designed to make trading easier and more accessible. By offering a range of currencies, exchanges, and margin loans, the platform gives traders the tools they need to succeed.

Degiro offers a great combination of benefits that make it an attractive choice for investors. One of the lowest fees on the market makes it an excellent option for those looking to save money on trading costs.

Here are some of the key pros of using Degiro:

These benefits make Degiro a great choice for investors of all levels, from beginners to experienced traders.

DEGIRO has made significant strides in improving its IT infrastructure's security, upgrading its systems after being deemed inadequate in 2021.

The company faced scrutiny from European authorities, which led to an incremental €3 million capital reserve.

In contrast, the platform's reliability has improved dramatically, with the author of a 2019 review noting that they have not experienced any downtime for years.

However, some users still report experiencing frequent maintenance periods, although these typically occur outside of trading hours.

Despite initial concerns, DEGIRO's parent company, FlatexDEGIRO, has established a strong reputation through regular quarterly reporting and coverage from Equity Research Teams across Europe.

DEGIRO faced scrutiny from European authorities over its IT infrastructure's security, deemed inadequate in 2021, leading to an incremental €3 million capital reserve.

The company has since upgraded its IT systems significantly, addressing the concerns raised.

FlatexDEGIRO, DEGIRO's parent company, was fined by BaFin for breaching banking supervisory regulations and faced increased capital requirements following the merger with DEGIRO.

This incident highlights the importance of robust regulatory compliance and adequate capital reserves in maintaining a good reputation.

Degiro's reliability has improved significantly over the years.

In 2019, the platform was not reliable, going down a few times per month.

Today, I have no problems with the platform.

I don't check the website as often, but I haven't noticed any downtime for years.

Some users complain about frequent maintenance periods, but those happen outside of trading hours.

Degiro's Cash Custodians play a crucial role in ensuring the security and accessibility of your cash deposits. They are responsible for safeguarding your money in a segregated account, separate from Degiro's own funds.

Degiro offers a range of account types, including a Cash Account, which allows you to deposit and withdraw funds easily. This account is designed for investors who want to keep their cash separate from their investments.

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The Cash Custodians at Degiro are regulated by the Dutch Central Bank, providing an additional layer of protection for your cash deposits. This regulatory oversight ensures that your money is handled in accordance with strict guidelines.

With Degiro's Cash Custodians, you can rest assured that your cash is safe and easily accessible. You can withdraw your funds at any time, and the process is typically completed within two working days.

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Degiro offers protection to its investors, which is a crucial aspect to consider when choosing a broker.

EU clients and new UK clients are protected up to €20,000, a standard level among most EU brokers, but considered low.

This protection is provided by the German Federal Financial Supervisory Authority (BaFin).

Legacy UK accounts, on the other hand, are protected up to £85,000 for clients who signed up before 2023.

However, new clients fall into EU regulations, as the UK entity is currently suspended by the FCA.

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DEGIRO sells customer orders to Tradegate, a practice that was initially not approved by Dutch regulators.

This practice, known as payment for order flow or PFOF, is now allowed under German jurisdiction, where DEGIRO's business practices largely fall.

DEGIRO's takeover by German company Flatex led to the money of its Dutch customers being stored on a German bank account.

The Tradegate deal allows users to trade outside regular opening hours of stock markets.

Users retain full control over whether they send orders to Tradegate.

You can import your Degiro trades to Sharesight to track your investment performance across different brokers, asset classes, and markets.

Sharesight allows you to import your historical and ongoing trades through the trade confirmation emails feature.

Importing your trades to Sharesight gives you access to automatic dividend tracking, plus advanced performance and tax reporting tools designed for self-directed investors.

You can also manually import your historical trades by uploading a spreadsheet file.

Sharesight takes into account the impact of capital gains, dividends, brokerage fees, and currency fluctuations when calculating returns, giving you a complete picture of your portfolio's performance.

Sharesight offers a range of powerful reports, including performance, portfolio diversity, contribution analysis, multi-currency valuation, multi-period, and future income (upcoming dividends).

A balanced share portfolio is a key to financial stability and growth, and Degiro can help you achieve that.

To create a balanced share portfolio, you need to understand how different asset classes contribute to stability and growth.

Asset classes like stocks, bonds, and commodities can provide stability, while others like real estate and cryptocurrencies can offer growth potential.

A balanced portfolio typically includes a mix of low-risk and high-risk investments to spread out the risk.

The pros of a balanced portfolio include reduced risk, increased diversification, and potentially higher returns over the long-term.

However, a balanced portfolio also has its cons, such as potentially lower returns in the short-term and higher fees associated with managing multiple investments.

Degiro offers a wide range of investment options, including stocks, bonds, and ETFs, which can help you create a balanced portfolio that suits your needs.

By investing in a mix of asset classes, you can create a portfolio that provides stability and growth, and Degiro can help you get started.

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Degiro offers a range of services, but for those seeking more advanced features, Tier 2 Brokers are worth considering.

Tier 2 Brokers offer more extensive research tools and a wider range of investment products compared to Degiro's standard offering.

Degiro's partnership with Tier 2 Brokers allows users to access a broader universe of stocks, including those listed on international exchanges.

This expanded access can be particularly beneficial for investors looking to diversify their portfolios.