DEGIRO

DEGIRO, a European-based online broker, has gained attention for its user-friendly approach and cost-effective services. In this detailed review, we will explore DEGIRO’s unique features, trading experience, fees, account types, security measures, and more..

Introduction to DEGIRO

DEGIRO, founded in 2013 in the Netherlands, has rapidly become one of Europe’s leading online brokers. With a mission to democratize finance and provide affordable access to global markets, DEGIRO has garnered a substantial user base. The platform has expanded its reach to multiple European countries, offering a diverse range of financial instruments and a user-friendly interface.

The broker is ideal for people looking for European regulation, low fees, and great reliability. DEGIRO’s priority is to provide you with access to all kinds of regulated financial assets on the stock market, with a variety of instruments including stocks, bonds, options, and funds. Their trading platform is friendly for both newbies and investing pros.

Regulatory Oversight

Before delving into the features, it’s essential to understand DEGIRO’s regulatory standing. DEGIRO is regulated by the Dutch Authority for the Financial Markets (AFM) and is registered with the Dutch Central Bank (DNB). While not as well-known as regulatory bodies in other jurisdictions, such as the FCA or SEC, the Dutch regulatory framework provides a level of oversight and protection for users.

The following are some of the regulatory bodies that supervise and authorize DEGIRO’s operations:

• German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
• The Netherlands Financial Markets Authority (AFM)
• The Dutch National Bank (DNB)
• The Financial Conduct Authority (FCA)

This level of regulation means that clients’ funds are kept in separate money market funds. Plus, in the event of DEGIRO’s bankruptcy, clients have access to compensation for up to 20,000 Euros. In case of major disputes, you can always contact the government regulators.

Trading Platforms 

One of DEGIRO’s standout features is its intuitive and user-friendly platform. New users, especially those new to investing, will appreciate the straightforward design that prioritizes ease of use. Navigating through the platform is seamless, and essential information is presented clearly and concisely.

Charting

There’s a variety of trading and charting tools available on DEGIRO> You can customize your trading experience through indicators and options such as a date range and drawing tools. The default settings bring a simple line chart, but you can always change this to candlesticks or OHLC charts.

Web/Desktop App

DEGIRO uses a web-based proprietary trading platform. You can log into it directly via the broker’s website. It’s user-friendly and has most of the features you’d typically need. The platform is easy to navigate, and gives you instant access to your portfolio and a range of tools and data you need to trade. 

Mobile App

DEGIRO mobile app is available on both Android and iOS. It has the same functionality as the web platform, maintaining the user-friendly appeal and provides you with access to the entire available tradable assets. 

Account Types

DEGIRO offers different account types to cater to various investor needs. For individual investors, the Individual Cash Account and Individual Custody Account are available. The Custody Account provides an additional layer of security by segregating your assets from DEGIRO’s own assets.

Here are the types of accounts you can open at DEGIRO:

Basic account: The basic account is great for those looking to invest and/or hold shares or ETFs. The basic account does not allow the use of leverage.

Active account: This option offers a moderate amount of leverage to make riskier trades for greater profit potential.

Trader account: This account offers the highest leverage on DEGIRO. The Trader account is ideal for those with a lot of experience trading financial assets, and those that trade often.

Daytime Trader Account: This account lets you use 100% of your available margin. Daytime Trader Account is ideal for professional traders with a good level of trading knowledge, and often hold their positions intraday in the stock market.

Custodian account: The Custodian account is meant to help investors accumulate a deposit on more favorable terms.

It’s worth noting that DEGIRO doesn’t offer a DEMO account. Fortunately, the minimum deposit amount is $0, so you can start your trading journey with relatively small amounts.

Trading Fees on DEGIRO

One of DEGIRO’s key appeals, especially if you’re mindful of costs, is its competitive fee structure. DEGIRO follows a transparent fee model, charging low commissions on trades. The platform offers a variety of investment products, including stocks, ETFs, bonds, options, and more, with fees that are generally lower than traditional brokers.

DEGIRO has no minimum deposit requirements. The broker also does not charge any deposit or withdrawal fees. However, unlike most other brokers, you are only allowed to withdraw money through bank transfer.

There are fees charged on each trade, and these vary based on the asset you’re trading. Do note that the minimum trade size should be worth at least 1 CHF, regardless of how many units or shares you’re trading. There’s no maximum trade limit.

Access to Global Markets

DEGIRO stands out for providing access to a vast array of global markets. It gives you access to 30+ stock exchanges from around the world, including the popular exchanges in Europe, the UK, and the US, with most of the leading global stocks like Google, Tesla, Apple, and Amazon. This is particularly advantageous for those seeking to diversify their portfolios internationally.

DEGIRO offers a diverse range of tradable instruments, ensuring that you can build well-rounded portfolios. The platform covers:

Stocks: Access to a broad selection of stocks across global markets. These include stocks listed in over 50 exchanges in Europe, North America, and Asia.

ETFs: More than 4,000 Exchange-Traded Funds for diversified exposure.200+ of these are free to trade in.

Bonds: There are more than 600 government and corporate bonds for fixed-income opportunities. The fees vary based on the country.

Futures: You can trade in futures on more than 14 international markets with fees starting at €0.75 per contract based on the exchange.

Options: For those interested in derivatives trading, you can trade options on 12 exchanges. The fees start at €0.75 per contract.

Investment Funds: There are 64 investment fund providers on DEGIRO, including Goldman Sachs, Fidelity, Aberdeen Standards, and more.

The comprehensive range of instruments caters to investors with varying risk appetites and investment goals. However, it’s worth noting that DEGIRO doesn’t let you buy or trade cryptocurrencies directly. You can only buy crypto-related shares via an Exchange-traded Note (ETN).

Real-Time Market Data

To make informed investment decisions, timely and accurate market data is crucial. DEGIRO provides real-time streaming quotes, charts, and financial news, empowering users with the information needed to navigate dynamic markets. This feature is particularly beneficial if you value staying informed in real time.

Security Measures

Security is a top priority for any online platform, especially one dealing with financial transactions. DEGIRO employs robust security measures to protect user data and assets. The platform uses SSL encryption to secure communication, and client funds are held in separate custodian accounts for an added layer of protection.

Research and Education

Recognizing that some people may be entering the world of investing for the first time, DEGIRO provides educational resources to empower users. While not as extensive as dedicated educational platforms, DEGIRO offers guides, articles, and a knowledge base to help users understand fundamental concepts and investment strategies.

Depending on your country, there’s a regularly updated blog featuring market news and articles. There’s also a dedicated section on strategies for investors, including fundamental and technical analysis which can give you insights. You can also download any company’s latest financial data and statement if needed. 

When it comes to educational content, there’s a variety of materials included. This includes video lessons on how to make the most out of DEGIRO’s platform along with tutorials on order types, trading strategies, and investing tips. They also have an FA section with answers to some of the most common hurdles you may experience. 

Mobile Trading

In the fast-paced world of today, the ability to trade on the go is essential. DEGIRO’s mobile app allows users to manage their investments, execute trades, and access market information from their smartphones. The app is well-designed and offers a seamless mobile trading experience.

Customer Service

DeGIRO’s customer support is available on weekdays. DEGIRO provides customer support through various channels, including email and phone. While the platform offers multilingual support, some users have reported occasional delays in response times during peak periods. However, the overall customer service experience is generally positive.

Unique Features

Custody Account Option: DEGIRO’s Custody Account, as mentioned earlier, provides an extra layer of asset protection, appealing to users who prioritize the safety of their investments.

Fractional Investing: DEGIRO introduced fractional investing, allowing users to buy and sell fractions of shares. This feature is always welcome for investors with limited capital who want to invest in high-priced stocks like Amazon or Google.

Themed Investments: DEGIRO offers themed investments, allowing users to invest in curated portfolios based on themes such as sustainability, innovation, or technology. This feature caters to those interested in aligning their investments with specific themes or trends.

DEGIRO Review Verdict

DEGIRO positions itself as a great platform for new and experienced traders. Its user-friendly interface, cost-effective trading, access to global markets, and unique features like fractional investing make it a compelling choice. The platform’s commitment to transparency and security adds to its appeal, providing a trustworthy environment for users to build their investment portfolios.

For anyone looking for an accessible and feature-rich platform to kickstart their investment journey, DEGIRO stands out as a platform that aligns with their aspirations. As with any investment decision, it’s crucial to conduct thorough research, understand one’s risk tolerance, and stay informed about market trends.