Degiro is an online broker that hails from the Netherlands, having started its operation in 2013. It was set up by a team that came from a different established broker in the sector. It now offers trading across 18 different nations in Europe and one of its main selling points is its low fee structure. Currently, there are more than 400,000 people signed up for the Degiro platform.
There are dozens of different markets catered for when trading. It is regulated by the Netherlands Authority for Financial Markets (AFM), as well as the Dutch Central Bank (DNB). Finally, it is also regulated by the well-respected UK Financial Conduct Authority (FCA).
This Degiro review looks at the various aspects that make up an online broker. It will highlight what the broker does well and where it may fall down.
- Some of the lowest costs in the sector
- Well-regulated by respected bodies
- Massive selection of markets and financial instruments
- Great desktop and mobile offering
- No education offering
- Limited analysis tools
- Only bank transfer can be used to add and withdraw funds
Degiro CFD Review
The only types of CFDs that are on offer through Degiro are for exchanges. In total, 21 exchanges from across the world have CFD options for you to trade.
Degiro Stocks Review
With the stocks offering at Degiro, you have a massive array of different options. There are 30 different nations catered for, with over 50 exchanges providing you with stocks to invest in. All of the major markets are covered and the fees are surprisingly low. There are also many tools you can use to research and analyse potential stocks, all in a secure manner.
DEGIRO ETFs Review
In terms of the ETFs selection at Degiro, there are more than 6,000 options across 20 different markets that you can select from. You can trade these ETFs in the same way you would trade shares. Of the selection of ETFs on the platform, about 200 of them carry no commission when you trade them. There are also about 740 ETFs that have discounts.
DEGIRO Futures Review
There is a futures market on offer through Degiro. In total, there are 14 different futures options on offer. These range from the US market or from nations all across Europe.
What did our traders think after reviewing the key criteria?
One of the main selling points of Degiro is its low fees. There will be different fees depending on the markets you are trading. Generally, for trades made on European markets, for UK clients, there is a £1.75 fee in addition to a charge of 0.0004%, having a £5 maximum, which is ideal for UK clients.
As well as being able to select ETFs that do not have any fees, you will be given one ETF without having to pay any trading fees each month when using the Degiro platform. If you are making orders via telephone or email, there is a £10 surcharge in place. There are no setup fees or inactivity charges and there is an annual connectivity fee which is usually only £2.50 per year, which is very low.
You can quickly compare the Degiro fees with those offered through six of the other leading brokers in the UK market. It provides you will actual examples of how much it will cost you when buying certain shares, as well as having a handy cost calculator for you to us.
As mentioned the type of account you get with Degiro depends on your risk profile. There are five different profiles to select from. These are: the basic option, custody, active, trader and day trader account types. You will have to pay a fee when using the custody account. Some people may want to open upon a corporate custody account.
Each of these account types has its own advantages and drawbacks. It depends on how active you are going to be when using the platform, which will dictate which option best suits your needs. For beginners, the basic account type is the ideal option for you.
The main trading platform on offer with the Degiro offering is Web Trader. This is common across the broker industry and gives you access to all of the standard tools needed when making trading decisions.
You can use the QuickOrder button in order to make a trade in a matter of seconds, no matter what you may be doing on the platform. There is a handy favorites list which can be used to watch your favored positions, to identify buying and selling opportunities. In terms of speed, the platform works ultra-fast and it is very easy to use.
There is also an app for iOS and Android users. It is proprietary Degiro software and allows you to trade futures, options, ETFs and stocks. Other features that can be accessed are the full breakdown of the performance of your investments, as well as getting instant quotes and access to market news.
As mentioned, the trading platform at Degiro is very intuitive and straightforward to use In terms of the website itself, there is a classic blue and white color scheme in place. Site developers clearly didn’t want to have too many frills, everything is to the point and eliminates any doubt that a person may be having when it comes to figuring something out on the site. The menu is not inundated with many unnecessary links and you can quickly see exactly what investment products are open for you to trade.
A lot of platforms do not have such a transparent list of exchanges in which you can access, so this is definitely a strong point in terms of the site’s usability. If you want to compare fees, there is a well-presented table found on the website which compares the Degiro offering with the other major brokers in your region.
If you want to get the answer to a question, the best place to start is the FAQ section, which is well stocked up with a diverse range of questions. The accompanying solutions are well laid out and make sense. If you want to talk with a member of the customer support team, then get in touch through email, phone and live chat. The phone lines for both the trading desks and the support lines are open during the week between 7 AM and 9 PM.
There are numerous languages supported, but you will face charges for making these calls. When sending an email the response time are pretty good, but more and more people like to send correspondence through the Degiro social media accounts as these get replied to very quickly. All in all, this is a quality customer service offering. The main drawback is not having access 24/7 to the support team.
The main method for you to add funds to your Degiro account is through a bank transfer. When you first sign up for an account, you will add in your bank account details. This allows you to quickly make a deposit when the time comes. Generally, it will take 2-4 business days for your funds to be processed into your Degiro account. There is no way for you to rush urgent transfers through and there is no fee charged by Degiro when you are adding or subtracting funds from your account.
You do not have to verify your age through uploading identifying documents thankfully with Degiro, as this process is done directly through checking your bank account info. There are currently no limits in place for how much you can add to your Degiro account in a single transaction. Unfortunately, only having a bank transfer option open to users is a drawback due to its bank charges and slow processing times.
Unfortunately, there is no option to open up a demo account through Degiro. This is a common way for new users to get used to a given platform’s trading platform. The justification given by Degiro for not having a demo account is that you can deposit as little as £1 and trade using very small sums, so you may as well use real funds as such small sums are catered for.
There is also no form of education training on offer for Degiro users. Therefore, you will need to be well-educated about trading before signing up for an account or use another resource to train yourself when opening up an account with Degiro. Unlike a lot of the newer online brokers, there are no bonuses or offers available for clients, such as deposit bonuses. The analysis section is also lacking, with there not even being an economic calendar, trading signals or in-depth analysis tools open for you to use.
In general, Degiro focuses on being a low-cost broker that gives you access to a wide range of financial products and markets. Other secondary aspects such as education and in-depth analysis is not a concern for the broker.
Regulation & Deposit Protection
You will be hard-pressed to find a discount broker that is better regulated than Degiro. It is regulated in its home country of the Netherlands, as well as being under the scope of the UK’s FCA. This means that you can sleep easy, knowing that your investments will be well protected. In terms of the security of the actual platform, there is SSL encryption used to keep your personal and financial data safe and sound.
For any cash deposits that are sitting in a person’s account, these are directed toward the cash fund. These a reinvestment funds which give a yield just under the currency’s regular market rate. You can opt-out of this if you wish to do so. As Degiro is not a bank, it cannot use its clients funds to make its own investment. Therefore, all of the funds deposited via Degiro flow through a different entity.
In terms of the exact sums for investor protection, individual client accounts are protected up to €20,000 through the Dutch Investor Protection Scheme. This is a bit low when compared with a lot of the other brokers in the sector today, which may be a concern for some traders.
Over a number of years, Degiro has racked up an impressive array of awards. Having only been in the sector since 2013, it is already one of the leading discount brokers across all of Europe. They consistently are ranked highly following reviews, particularly when it comes to its customer support and low fees.
Some of the more recent awards that have been won by Degiro include:
- Best Low-Cost Stockbroker – 2017 and 2018 Financial Times/Investors Chronicle
- Best Discount Broker 2018 – Broker Chooser
- Best Online Broker 2018, 2017 and 2015 – Golden Bull Awards (Netherlands)
- Best Mobile Share Dealing 2017 – Financial Times/Investors Chronicle
In all, more than 57 awards have been won by Degiro since it started just six years ago, which is a very impressive feat. As time goes on, this list will no doubt grow in size.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.