DEGIRO is a Netherlands-based online broker that started in 2013 as a wholesale broker but has since expanded to almost 20 European countries. Its competitive advantage lies in offering low-to-zero commissions, which has enabled it to become one of Europe’s largest brokers. In 2020, DEGIRO merged with flatex, and a year later, it became the largest online broker on the continent. It also obtained its own banking license. DEGIRO has received 82 awards, including recognition as the “Best Discount Broker” and “Best Broker for Stock Trading” in 2022 by Broker Chooser. Other recent awards include “Best Stockbroker” by Rankia in 2020, “Broker-Test.de Daytrade Broker 2020 (BrokerWahl),” and “German Fairness Award 2020” by NTV.

DEGIRO Pros & Cons

Pros of DEGIRO:

1. Low Fees: DEGIRO has a competitive edge with its low commissions and fees. This makes it an attractive option for investors who want to keep their costs down.
2. Wide Range of Markets: DEGIRO offers access to a wide range of markets across nearly twenty European countries. This makes it easier for investors to diversify their portfolio.
3. Banking License: DEGIRO has its own banking license, which means that it is subject to regulation by the Dutch Central Bank. This offers an additional layer of security and protection for investors.
4. Award-Winning: DEGIRO has won numerous awards for its services, including “Best Discount Broker” and “Best Broker for Stock Trading”.

Cons of DEGIRO:

1. Limited Research Tools: DEGIRO’s research tools are limited compared to some other brokers. This may not be ideal for investors who rely heavily on research in their decision-making process.
2. Inactivity Fees: DEGIRO charges an inactivity fee of €2.50 per year for accounts that have been inactive for over 12 months. This may not be a significant fee, but it is still something to be aware of.
3. No Mutual Funds: DEGIRO does not offer mutual funds, which may be a drawback for investors who prefer this type of investment.
4. Limited Customer Support: Some users have reported issues with DEGIRO’s customer support, including slow response times and difficulty reaching a representative.

Who Is DEGIRO Recommended For?

DEGIRO is recommended for a wide range of investors, including beginner to experienced traders who are interested in trading stocks, bonds, options, futures, and other securities in European markets. Its low fees and commissions make it a great choice for cost-conscious investors who want to maximize their returns. Additionally, its user-friendly platform and excellent research tools make it a good option for beginners who are just starting out in the investing world. However, it is important to note that DEGIRO may not be the best choice for investors who require a full range of investment options, such as access to mutual funds or retirement accounts, as these are not currently offered by the broker.

Top DEGIRO Features

• Fee transparency: DEGIRO is known for its transparency when it comes to fees, with no hidden charges or inactivity fees. The broker provides a comprehensive list of fees on its website, and charges low fees compared to other brokers in the market.
• Low fees: DEGIRO offers low fees for trading, making it a cost-effective option for investors.
• Large user base: With over two million users, DEGIRO has established itself as one of the leading brokers in Europe.
• Award-winning: DEGIRO has won numerous awards for its services, reflecting its excellent reputation in the industry.
• Proprietary technology: DEGIRO offers its own proprietary trading platform, which is user-friendly and comes with a range of useful features.
• Access to global markets: DEGIRO allows investors to trade on over 50 global exchanges, providing access to a wide range of markets and investment opportunities.
• Easy account opening: DEGIRO has a quick and easy account opening process, with no minimum deposit requirements.
• Comprehensive research and educational resources: The broker offers a range of research and educational resources to help investors make informed decisions, including market news, analyst reports, and educational articles.
• Security and regulation: DEGIRO is regulated by multiple authorities, including the Financial Conduct Authority (FCA) in the UK, providing investors with peace of mind that their funds are secure.

DEGIRO Account Types

DEGIRO offers two account types: Basic and Active. The Basic account is the first level of accounts and requires no minimum deposit. This account type allows trading with up to 100% margin and offers a variety of account currencies including EUR and others. The commission per trade varies by market, with UK markets costing 1.75 GBP +0.50 EUR external handling fee and US markets costing 0 commission + 0.50 EUR external handling fee. The trading instruments available include indices, shares/stocks, bonds, futures/forwards, options, ETFs, investment funds, and structured products. There is no minimum lot size per trade and the maximum value per trade is 300,000EUR (unlimited if buying/selling a single share). There is no demo account or copy trading support, and swap/rollover fees are not listed.

The Active account type is the next level up and also has no minimum deposit. It offers the same trading instruments as the Basic account, but with additional features such as customizable news and alerts, more detailed reporting, and direct access to global markets. The commission per trade is the same as the Basic account, but there is an additional handling fee of 0.05% (with a minimum of 1 EUR) for trades on European markets. The available leverage varies and there is a $0.50 handling fee per trade. The account currencies available are also EUR and others. The minimum lot size per trade is none, and the maximum value per trade is 300,000EUR (unlimited if buying/selling a single share). There is no demo account or copy trading support, and swap/rollover fees are not listed.

DEGIRO Security & Regulation

DEGIRO takes security seriously and uses several measures to protect clients’ accounts and personal data. Some of the security measures in place include two-factor authentication, encrypted communication, and secure servers. DEGIRO also maintains separate accounts for client funds to ensure that they are not mixed with the company’s own funds.

As for regulation, DEGIRO is authorized and regulated by the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB). Additionally, DEGIRO is registered with regulatory authorities in all the countries where it operates, including the UK’s Financial Conduct Authority (FCA). These regulations help ensure that DEGIRO complies with industry standards and safeguards clients’ investments.

Conclusion on DEGIRO

DEGIRO is a solid choice for investors looking for a low-cost, no-frills broker. Its transparent fee structure and low fees make it an attractive option for both novice and experienced traders. The broker’s proprietary platform is user-friendly and offers a range of useful features, though it may not have as many advanced tools as some of its competitors.

DEGIRO’s security and regulation are also up to industry standards, and the broker has won numerous awards for its service. However, it’s worth noting that the lack of phone support and limited account types may not be suitable for some investors’ needs.

Ultimately, investors should carefully consider their own needs and preferences when choosing a broker, but DEGIRO is certainly a strong contender for those seeking a low-cost option.