DEGIRO review: a comprehensive analysis of features, tools, and costs

Undoubtedly, if you’re reading this article, it’s likely because you’ve come across information about one of the most popular brokers for stock market investments: DEGIRO.

Boasting nearly 2.5 million customers across Europe, DEGIRO has emerged as a top choice among Rankia users. Notably, as of this year, it holds the distinction of being the broker with the largest user base throughout Europe.

Given its prominence, this article aims to meticulously analyse this online broker, delving into its strengths, weaknesses, security measures, platform usability, commissions, and the array of assets available for investment.

Main features of DEGIRO

Let’s briefly see the features of this broker:

  • 🏆 Regulation: FCA (UK)
  • 🔒 Guarantee fund: €20,000 (German Investor Protection Scheme)
  • 💼 Financial assets: stocks and ETFs, options, futures, bonds, and warrants
  • 🌐 Markets: More than global 30 markets
  • 💻 Account types: Basic, Active, Trader, and Day Trader
  • 💲 Commissions:
    • UK Stocks: £1.75 + handling £1
    • Selected ETFs: €0 + €1
    • Options and futures: €0.75
  • 💰 Minimum deposit: €0.1€
  • 📈 Platform: Proprietary
  • 📧 Contact:
    • Email: clients@degiro.co.uk
    • Phone: +44 (0) 20 3695 7834

History of DEGIRO

DEGIRO was founded in 2008 as a firm that offered financial services to professional clients.

In September 2013 they launched their service for retail customers in the Netherlands. Subsequently, during 2014 and 2015, DEGIRO embarked on a journey of expansion into other European countries.

Their platform debuted in the United Kingdom in 2015, and since then, they have extended their services to numerous other European nations, including Italy, France, Spain, Portugal, Greece, Germany, Norway, Poland, the Czech Republic, and Hungary.

The year 2020 marked a crucial milestone for DEGIRO when it was acquired by Flatex AG (FTK.DE), leading to the formation of one of Europe’s largest brokers. Together, they now boast over 1 million customers and facilitate more than 50 million transactions annually.

DEGIRO is listed on the primary stock exchange in Germany, and its stock price has witnessed remarkable growth.

Is DEGIRO safe? | regulation and guarantees

To address this concern, we must examine two critical aspects: the regulatory oversight of DEGIRO and the safeguards in place to protect your funds.

Regulation

DEGIRO operates under the direct supervision of the Financial Conduct Authority (FCA) in the UK.

Additionally, since flatexDEGIRO Bank AG functions as a regulated German bank, it is primarily overseen by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the German financial regulator.

Is DEGIRO reliable? | DEGIRO guarantee fund

Next, let’s explore the safety of your funds. In the event of a bank’s bankruptcy, you might wonder if your capital is protected.

DEGIRO segregates clients’ assets under a separate entity. This means that, in case of DEGIRO’s bankruptcy, the funds remain intact.

While unlikely, if the protecting entity were to go bankrupt, DEGIRO falls under the purview of the German Investor Compensation Scheme. In such an unfortunate scenario, losses to your capital would be compensated up to 90% (capped at €20,000).

 DEGIROProtection
Custodian EntityStichting DEGIRO
RegulatorBaFiN (Germany)
Deposit Protection 90% of your capital (up to €20,000)

Products of DEGIRO: stocks, funds, bonds, futures, commodities, and options

One of the most highly regarded aspects of DEGIRO is its extensive range of markets and products.

It is essential to note that DEGIRO operates solely as an execution broker. While their offering is comprehensive, certain assets with intricate internal operations may present challenges. It’s worth mentioning that DEGIRO positions itself as a low-cost broker, prioritising a user-friendly platform tailored towards novice investors or those without extensive expertise in trading.

Here is a snapshot of the main products you can trade with DEGIRO:

  • ✅ Stocks
  • ❌ Forex
  • ❌ CFDs
  • ✅ Funds
  • ✅ Futures
  • ✅ Options
  • ✅ Bonds
  • ✅ Commodities
  • ❌ Cryptocurrencies

Let’s have a look at each asset class individually.

Stocks and ETFs

DEGIRO provides access to over 50 stock exchanges and more than 5,000 ETFs, including the largest international markets, as well as several smaller European stock exchanges.

Mutual funds

While DEGIRO does offer investment funds, it’s true that the catalogue is relatively limited, comprising only 64 funds. However, these funds do provide exposure to offerings managed by renowned entities like BlackRock or Vanguard.

Bonds

DEGIRO facilitates the trading of diverse bond types, both government and corporate, boasting an extensive catalogue of over 650 debt products. Notably, the selection includes prominent European countries’ public debt bonds, such as those from the Netherlands, Portugal, France, Belgium, and Germany.

Options and futures

Through DEGIRO, it is also possible to trade some derivatives, mainly options and futures from markets such as Brussels, Amsterdam, Madrid, Nymex, or Eurex.

In total, with DEGIRO you will have access to 12 options markets and 14 futures.

Access to markets with DEGIRO

One of DEGIRO’s primary and standout features lies in its extensive range of markets, setting it apart from other financial intermediaries. Notably, DEGIRO provides access to numerous markets that are typically not available through other platforms, and at a notably lower cost.

For instance, it stands out as one of the few intermediaries enabling retail users to directly access markets like Turkey, Australia, and several European markets.

Markets Available via DEGIRO
EuropeAmericaAsia
Germany​​​United StatesJapan
FranceCanadaHong Kong
United Kingdom Australia
Spain Singapore
Switzerland Turkey
Italy  
Portugal  
Ireland  
Belgium  
Greece  
Denmark  
Norway  
Austria  
Finland  
Hungary  
Sweden  
Czech Republic  

However, it’s essential to be aware of certain limitations that exist in markets like Hong Kong and Canada.

  • Hong Kong: While you can place orders for execution in the Hong Kong market, it’s important to note that you may not see the live quote price. Additionally, there is a possibility that your order might not be executed.
  • Canada: Specific companies may require you to buy and sell shares in lots of 100 shares each. This means that trading individual shares might not be possible, and you’ll need to adhere to the lot size requirement.

Types of DEGIRO accounts: basic, active, trader, and day trader

DEGIRO offers four distinct types of accounts to cater to various trading preferences: Basic, Active, Trader, and Day Trader. When you register, a basic account will be created for you. To change the account type, you must fulfil several requirements, as detailed below.

Basic account

The Basic account is well-suited for beginners or individuals who do not engage in derivatives trading. It provides access to all DEGIRO products and services, except for trading in derivatives, short positions, futures, and margin trading.

Upon registering with DEGIRO, the Basic account is the default option. However, users can later switch from the Basic account to either the Active or Trader account.

Active and trader accounts

The Active and Trader accounts are extensions of the Basic account. Unlike the Basic account, these two allow users to trade with leverage and engage in short positions for both stocks and derivatives.

The primary difference between the Active and Trader accounts lies in the use of Short Positions in Cash. While the Active account allows up to 50% of the available margin, the Trader account permits leveraging up to 100% of the available margin.

Day trader account

The day trader profile allows day traders to transact for a longer time so the trading window is from 08:00 AM to 9:30 PM CET. It’s worth noting that activating this profile is not generally recommended, as traders at this level might find other brokers more specialised for professionals.

Moreover, obtaining the Day Trader profile requires prior contact with DEGIRO’s Customer Service Department, as it cannot be activated online.

How to open an account with DEGIRO in 4 steps?

Opening a DEGIRO account is a swift and straightforward process that should only take a few minutes. Follow these steps to get started:

1. Go to the broker’s homepage and click on the “Open an account” button.

2. Provide your personal details, such as your email, username, and password.

3. Once you have received the email confirmation of the account, you must accept the terms and conditions.

4. Next, complete your personal information and submit the necessary documents. It’s important to note that to commence trading, you’ll need to link your bank account.

DEGIRO cost structure

DEGIRO prides itself on being a low-cost broker, particularly evident in its competitive costs for the North American and exotic markets. Notably, DEGIRO does not impose any custody fees or charges for dividend processing.

However, it’s important to consider that the broker does apply a handling fee for certain assets, such as funds and stocks.

Costs for stocks

Each share trade will be subject to a fixed handling fee of £1 (or equivalent for stocks in other currencies). In addition to this, the commission varies based on which exchange the stock is listed:

ExchangeCommissionHandling fee
UK£1.75£1
US€1€1
European exchanges€3.90€1

Costs for exchange-traded funds (ETFs)

Another important feature of DEGIRO is that there is a wide list of ETFs, making DEGIRO one of the best ETF brokers. Also, there is a rich selection of commission-free ETFs:

 CommissionHandling fee
Selected
ETFs
€0€1
Global ETFs€2€1

Costs for investment funds

DEGIRO offers a wide range of mutual funds from many prestigious fund houses, including Goldman Sachs, Actiam, BNP Paribas, Aberdeen standard, and Fidelity. When investing in funds, it’s important to consult the fund’s TER – total expense ratio.

Costs for bonds

Bonds are charged with a commission of €2 and a handling fee of €1. Also, other fees may apply, such as spreads, connectivity fee, or currency fees.

Costs for options and futures

There is a decent offering of options and futures with DEGIRO. As with other products, the costs are highly competitive: contracts are charged €0.75 each (both options and futures).

Exchange connection fee

DEGIRO will charge you €2.50 per calendar year if you connect to an exchange other than the UK exchange.

Non-trading fees

Finally, DEGIRO does not charge commissions for inactivity, deposits and withdrawals of capital:

DEGIRO trading platform

As part of this DEGIRO review, let’s delve into its trading platform.

DEGIRO offers a user-friendly and straightforward proprietary platform, which can be considered an advantage or disadvantage depending on the user’s level of experience.

For novice users, the platform’s simplicity makes it easy to search for assets and execute trades seamlessly. However, for more advanced users who are accustomed to sophisticated platforms like Metatrader or ProRealTime, DEGIRO’s platform may seem limited in terms of available functionalities.

Firstly, the Market section provides users with a comprehensive global view of the market situation. It presents daily variations of global indices, offering insights into the performance of various markets. Additionally, the platform displays a list of top-performing stocks and those experiencing significant declines, giving users a snapshot of the current market trends.

The other sections allow you to check other information, such as:

  • Portfolio shows a history of closed trades and your current open trades.
  • Account shows information about deposits and withdrawals, commissions and and others.
  • Orders section contains all the orders waiting to be executed, as well as the history of placed orders.
  • Transactions section shows a list of all your trades.
  • Reports section includes all the annual reports where all the necessary information is included to be able to complete taxation reports.
  • Favourites section contains a list of all your favourite assets.

There is also a news section where you can check the latest market news. However, perhaps one of the most interesting sections is the Agenda.

This section allows you to see a snapshot of the most important company information, such as dividends, yield, and planned dividend dates. As shown above, DEGIRO has a mobile app, which replicates the web or desktop platform.

Types of orders with DEGIRO

DEGIRO offers various types of orders to cater to different trading strategies and preferences. However, it’s crucial to keep in mind that orders may not be executed in highly volatile market conditions.

These are the 5 types of orders that you can place with DEGIRO:

  • Market order
  • Limit order
  • Stop loss order
  • Stop limit order
  • Trailing stop loss order (only available on German exchanges)

It’s essential to consider that in markets where DEGIRO is a member, like Euronext, you can place stop orders directly during order configuration. In other markets, you might have to wait to add stop orders after placing the initial order, adhering to their specified ranges and with a validity of 90 days.

For example, if you buy a Bayer share in the United States at $50 and want to put a stop loss at $35 for a long-term hold, you might receive an error stating that the stop loss is set at too low a price. If the order isn’t executed within 90 days, it will expire.

Real-time data with DEGIRO

Regarding real-time quotes, DEGIRO provides some real-time quotes for free as a standard feature across all types of accounts.

However, only data from your home exchanges are available for free. For other exchanges, you need to pay a maximum of 0.25% of your total portfolio value (with a maximum charge of €2.50) per annum for each exchange with the exception of the Irish Stock Exchange). For US options, you need to pay €5.00 per exchange per calendar month.

Deposits and withdrawals with DEGIRO

When you create an account with DEGIRO, you are required to link your bank account. For deposits and withdrawals, you can only use the same bank account. Processing may take 2-4 working hours, but there are no fees charged by DEGIRO.

Customer service at DEGIRO

DEGIRO’s customer service can be contacted 24/7 via email (clients@degiro.co.uk). Also, phone service is available on weekdays from 7am to 9pm (44 (0) 20 3695 7834). Unlike other brokers, DEGIRO does not provide a live chat for quick assistance, and you may need to wait 1 business day to get a reply to your email.

Taxation with DEGIRO

When it comes to tax reporting for your investment portfolio, DEGIRO has made the process remarkably convenient for its users. From the trading platform, you can download reports to see your entire situation at the end of the financial year. If in doubt, it’s always a good idea to contact a tax professional.

DEGIRO promotions

0% commission on ETFs

DEGIRO offers certain ETFs without commissions. Each month, you can make an ETF trade with no commissions, as long as it is not a short position. The following trades in the same ETF and during the same month will not include a commission fee if you place an order in the same direction (i.e., buy or sell) and the value is at least 1,000 currency units (GBP, USD, or EUR).

Training & education with DEGIRO

DEGIRO has an abundant knowledge section. General investing and trading knowledge, such as the Investor’s Academy, products, strategies, and even a blog are provided for free.

DEGIRO reviews

Undoubtedly, DEGIRO’s reputation has garnered significant attention, given its status as the broker with the largest user base in Europe. As a result, there is a wealth of opinions and reviews about the platform.

While some critics have pointed out the lack of certain services and advanced features, many investors have found DEGIRO’s platform user-friendly and commend its competitive fee structure. Generally, the investor community has expressed positive sentiments, although some reviews may be mixed, particularly from users seeking a more sophisticated and professional broker.

On Truspillot, one of the prominent forums for discussions on brokers and financial services, DEGIRO boasts an overall positive evaluation – 4.3 out 5 stars, with over 60% of all users rating it 5 stars.

The same is applicable to Google Play Store, where the app recorded over 1 million downloads:

Other broker reviews

DEGIRO comparisons

Summary: DEGIRO review

DEGIRO stands out as a safe, affordable, and user-friendly option for trading and investing in the largest global markets. Its key strengths include competitive rates, 0% commission ETFs, and access to a wide range of important global markets.

Opening an account is a simple process, requiring no minimum deposit, and the user-friendly trading platform is well-suited even for those with limited trading experience.

On the downside, DEGIRO’s offering lacks access to cryptocurrency and forex trading, which may be a drawback for some traders. Additionally, it doesn’t provide a demo account service or the option to buy fractional shares, features that some other brokers are already offering.

In conclusion, this DEGIRO review finds it to be one of the top stock brokers available, particularly for investors operating from Europe. With its competitive rates, wide market access, and ease of use, DEGIRO remains a preferred choice for many investors seeking a hassle-free and cost-effective trading experience.

For more cost-efficient brokers, check out the best commission-free brokers.

Pros and cons of DEGIRO

Pros of DEGIROCons of DEGIRO
✅Regulated by FCA❌ No forex or cryptocurrencies
✅ Low commissions and other fees❌ No demo account
✅ Selection of free ETFs❌ No fractional shares
✅ Access to a large number of markets 
✅ Expansive product catalogue 
✅ User-friendly trading platform 

DEGIRO FAQs

Does DEGIRO have a demo account?

No, DEGIRO does not provide a demo account. However, you don’t need to make a deposit to open one.

Is DEGIRO compatible with MT4?

No, DEGIRO only offers a proprietary trading platform.

Can you trade crypto with DEGIRO?

No, you cannot access crypto if you open an account with DEGIRO.

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