Degiro Review

30 Second Summary

DEGIRO is an online stock broker based in the Netherlands. They provide a share dealing service only, at a very low cost. This review answers trader questions on things like dealing costs, minimum deposits, account types, and the trading platform itself, read on to discover whether you should sign up with DEGIRO – in their own words, an “empowering, comprehensive service” today.

Founded in 2013, DEGIRO has more than 450,000 customers in 18 countries. DEGIRO charges some of the lowest commission fees for bonds, gilts, ETFs, and shares. Fund trading at DEGIRO costs more than the industry average. As a result of DEGIRO’s focus on low prices, the broker offers practically no fundamental research beyond basic company information. Also, DEGIRO does not offer ISA or SIPP accounts. DEGIRO’s charting platform and mobile app are average at best, offering minimal features and functionality focused primarily on placing trades.

Pros / Cons
  • Easy-to-use web and mobile platform
  • Regulated by multiple top-tier authorities
  • No account fees
  • Forex CFDs not available
  • Limited research and education offering
  • No credit/debit card deposit

Company Overview

Established in the Netherlands in 2013 by five previous Binck Bank employees, DEGIRO offers a low-cost alternative to the current range of brokerage platforms. Low trading fees and charges, alongside an advanced trading platform, have seen DEGIRO grow significantly (it is currently active in 18 countries). According to its website, the company has over 450,000 customers.

Most of the products you can trade at DEGIRO, like stocks and ETFs, are exchange-traded. Therefore you do not run a counterparty risk with DEGIRO. This is good news, as it means that if DEGIRO defaults, your assets will still be safe.

Safety and Regulation

As a Dutch-based company, DEGIRO is regulated by the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM). It is also regulated in all relevant operational markets. For example, DEGIRO is registered with the FCA (Financial Conduct Authority) in the UK. Each user with an account at DEGIRO is eligible for investor protection for up to €100,000 in cash (and €20,000 in assets). This is thanks to DEGIRO’s banking background, following its acquisition by Flatex Bank AG, effective as of August 2020.

Is DEGIRO Safe?

Taking into consideration the information above we can safely say that DEGIRO is safe to trade with.  DEGIRO regularly updates its app to ensure it is secure and functions well for users on all operating systems. Ultimately, from a safety and security perspective, it is difficult to find fault with how DEGIRO operates.

Accepted Countries

Degiro only accepts traders from Czech Republic, Spain, Ireland, Norway, Poland, Sweden, Denmark, Greece, Italy, Hungary, Portugal, Switzerland, Germany, France, Netherlands, Austria, Finland, United Kingdom.

Trading Platforms

DEGIRO provides its users with several trading platforms to choose from. Web users will find the DEGIRO site easy to navigate and make trades on.

It’s clear that a lot of effort has been put into the user experience. For additional safety, the site uses two-step authentication which means that your personal information and trading data will always be kept safe. As a truly international day trading platform, DEGIRO is attuned to your local language. For example, UK users will find the site loads in English, whereas German traders will load a German version of the site without having to adjust any settings. DEGIRO’s web-based platform is perfect for executing trades, despite not being the most advanced trading site in the industry. While it is easy to use, a lack of customization options could potentially be improved upon.

However, the search functions are excellent, and will generally find the name of the product you’re looking for before you’ve even finished typing. Products are categorized by asset class, and you can also view the stock market and currency each product is available in. There’s even an option to filter your search based on the type of asset you are currently interested in.

DEGIRO’s app and desktop versions are unified, which allows for a seamless transition between the two. This is particularly useful for those who trade from a desktop device who also want to keep an eye on the latest market movements while on the go. It also ensures that all features available in the web version of DEGIRO are accessible via the app. This ultimately means that all aspects of asset management can be handled in a platform-agnostic manner.

One of the more useful features on DEGIRO is the “stocks to watch” section of the site. This provides information on various companies that have recently made the headlines or are currently receiving larger than average trading volumes. The purpose of this feature is to give you an insight into stocks you might find relevant or interesting. Better still, it’s possible to order stocks directly from the “stocks to watch” page by simply clicking on the ‘B’ symbol next to each mentioned asset. To conserve energy and to make browsing easier during night-time, DEGIRO is working to deliver a dark mode, though this is not available to all traders yet.

Users can switch seamlessly between day mode and dark mode, which can be particularly useful for users who are trading on-the-move from a device with low battery life. DEGIRO also offers tailor-made information dependent on your previous trading choices. This helps to highlight assets or stocks you may be interested in while cutting down on clutter within the platform dashboard, leaving more room for information that is relevant to you.

DEGIRO has also improved its charting over the last few years. Pop-out interactive charts now allow traders to utilize 13 different indicators, nine drawing tools, and multiple chart types and views. Traders can even save chart templates. While it is a bit annoying to open a new web tab to access these features, it is still an improvement.

Mobile App

DEGIRO’s mobile app, like the desktop platform, is basic in terms of research offered. Research aside, the app is user-friendly and straightforward to navigate. The ability to create watchlists (described as “Favourites” on the DEGIRO platform) and trade directly from the mobile app is helpful. The Favourites automatically synchronize between the website and the mobile app (which is not the case on some other apps competitors offer). Although charting capabilities are improved, pulling up an interactive chart takes you out of the app into a third-party website, which is a nuisance. Also, DEGIRO has face recognition and touch ID for easy logins, a nice and useful feature.

Trading Accounts Offered

DEGIRO offers its clients the following account types, curated for the needs of modern trader:

  • Custody account: This entry-level account allows users to trade shares, investment funds, bonds, and trackers (ETFs). Custody accounts are open to traders and day traders and come complete with free real-time prices on the latest Euronext exchanges.
  • Basic account: In addition to all the features available with a custody account, a basic account also entitles users to trade on leveraged products and warrants. Like a custody account, basic users are unable to short stocks or buy on margin.
  • Active account: Active accounts combine all the features of custody and basic accounts, with the additional option of being able to buy on up to 50% of your available margin and the ability to go short.
  • Trader account: In addition to all previously mentioned features, trader accounts allow users to buy on up to 100% of their available margin. Trader account holders also get access to free dividend and coupon processing.
  • Day trader account: This account allows users to trade derivatives and buy on up to 100% of their available margin – with additional margins available during open trading hours.
    This comprehensive range of accounts means that the needs of most traders are covered. All accounts come with their own individual benefits, many of which can be tailored to suit individual trading requirements.

Demo Account

Unlike many of its competitors, DEGIRO does not currently offer a demo day trading account. This could be a bone of contention for beginners because simulation accounts are incredibly useful when it comes to honing trading skills without having to risk any capital. However, seasoned traders who have a good idea of what they are doing won’t particularly be dissuaded by the absence of a demo account, and with low minimum deposits, newcomers can start trading penny stocks until they gain the confidence to begin risking larger amounts.

What is the minimum deposit requirement to open a trading account with DEGIRO?

DEGIRO has no minimum deposit requirement.

How long does it take to withdraw money from DEGIRO?

DEGIRO aims to execute every withdrawal request within 2-4 working days.

Assets and Products Offered

DEGIRO offers its clients access to a broad range of investments, including stocks, funds, bonds and gilts, ETFs, options, and futures. DEGIRO currently provides access to 30 international exchanges, providing either Direct to Market access or Smart Order Routing (SOR) through Morgan Stanley. All 30 exchanges lie within Europe, North America, Asia, and Oceania.

At DEGIRO, it’s possible to access many different markets and trade with hundreds of products. Contracts for difference (CFDs) and forex markets are unavailable. DEGIRO provides execution-only share dealing. The following asset classes and markets are supported by DEGIRO:

  • Stocks
  • Exchange-traded funds (trackers)
  • Bonds
  • Options
  • Funds
  • Futures

Overall, DEGIRO is great for access to stock exchanges and ETFs.

There are currently 32 stock exchanges listed, with more than 5000 ETFs to choose from – from the largest international markets to smaller European stock exchanges. However, the brand has a narrow selection of funds and bonds on offer.

Trading Costs And Fees

DEGIRO has non-trading and low trading fees. In most asset classes, it is one of the best-value platforms on the market.

Some ETFs can be traded once a month for free (conditions apply, details here), which is perfect for buy-and-hold investors but not so ideal for day traders.

Commissions on trades of £1,500 are as follows:

  • UK stock: £0.46
  • US stock: £1.92
  • German stock: £4.29

These prices mark out DEGIRO as one of the world’s more competitive stockbroking platforms.

However, there is a slight downside in that an unusual fee category known as “Exchange Connectivity” exists. Users are charged €2.50 per market, up to a maximum of 0.25% of their total account value per calendar year for each exchange – with the exception of the LSE (London Stock Exchange). If your account currency differs from the currency of the asset you wish to buy, you will also be charged a currency conversion fee. This can be applied automatically, at a rate of 0.1% of the value of the transaction.

Leverage

DEGIRO offers the use of lending the money using the trader portfolio as collateral. The amount available will vary based on the composition of the portfolio.

Deposit and Withdrawal

Deposits to the platform can be made via the following methods:

  • Bank transfer
  • Trustly (Available in selected countries)
  • Sofort (Available in selected countries)

The firm has relatively strict rules on bank transfer deposits. This means DEGIRO will only accept bank transfers in bank accounts linked to your name, from accepted countries only. Trustly deposits typically take around 30 minutes to arrive. DEGIRO does not charge any commission or fees for depositing funds into your account.

Withdrawals

DEGIRO does not charge any withdrawal fees. Like many online day trading platforms, withdrawals can only be made via bank transfer. The firm ensures that all withdrawn amounts are sent via bank transfer within three business days, however, most transactions are processed within one business day. As a security measure, users are not permitted to transfer to accounts that are not in their own name. It is worth noting that DEGIRO may require additional information from you prior to authorizing an initial withdrawal. If this information is not provided promptly, the withdrawal period could take longer than the standard three-day timeframe.

Promotions and Contests

Promotions and offers at DEGIRO are communicated directly with account holders, or via their website.

Trading Hours

Users can trade on DEGIRO 24 hours a day, 7 days a week. However, it’s important to understand that not all markets are open 24 hours a day! This means that your trading is limited to the hours when the markets you want to trade in are open. For example, the London Stock Exchange is open 24 hours, whereas the NASDAQ is open for normal hours trading between 2 pm and 9 pm GMT.

Customer Support

DEGIRO’s UK opening hours are between 7 am to 9 pm on weekdays. Users should be aware that if they wish to trade over the phone, they will receive a surcharge for trades/seeking advice. Customer service for technical issues/software problems is free.

The DEGIRO European customer service number is +44 20 3695 7834.

The company can be emailed at clients@degiro.co.uk.

Overall Verdict

If you are an investor looking for a low-cost way to trade stocks, DEGIRO is a great choice. The trading platform is basic, but it is efficient and straightforward to use.

However, if you are a longer-term investor and require strong fundamental research, cheap funds trading, or are looking for an ISA or SIPP account type, DEGIRO does not deliver.

DEGIRO is the perfect choice for traders who want a simple platform without having to spend an awful lot on fees. It is a lot cheaper than some of its bigger European competitors, with few coming close to even competing with DEGIRO’s current fee listings. The lack of markets and investment types does mean, however, it is better suited to ‘buy and hold’ investors, rather than active day traders.

However, despite the low prices and intuitive user interface, DEGIRO is not without its shortfalls. While some onsite educational tools exist (such as trading tutorials and videos), there isn’t quite enough to help educate new traders. The absence of forex trading is likely to put some users off, and the fact that money can only be withdrawn via bank transfer might be enough to dissuade some day traders from using the platform altogether. The lack of price updates via push notifications is also something that DEGIRO might consider working on in the future if they want to further improve their platform.

Methodology

All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary. The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers. What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.

Review Sources

  1. DEGIRO Website – https://www.degiro.eu/
  2. Stockbrokers.com – DEGIRO review – https://uk.stockbrokers.com/review/degiro
  3. Daytrading.com – DEGIRO Review and Tutorial 2020 – https://www.daytrading.com/degiro
  4. Brokerchooser.com – DEGIRO Review – https://brokerchooser.com/broker-reviews/degiro-review
  5. Wikipedia – https://en.wikipedia.org/wiki/Degiro
  6. DEGIRO – Online Stock Trading App – https://play.google.com/store/apps/details?id=nl.degiro.trader&hl=en_IE
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Degiro offers cheap shares and stocks trading through a revolutionary trading platform

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