DEGIRO appears to want to be very clear and up front about their credentials, with the “about us” section of their website adorned in big letters with the message “DEGIRO rated among the best brokers in Europe”. Their website also says they have received over 30 international awards to help cement this status, with some of the most recent including Best Low-Cost Stockbroker 2017 by the Investors Chronicle and Financial Times, coming with the tagline of “making waves” with their low commission share dealing offers. DEGIRO have also received of the Best Mobile Share Dealing 2017 at the same awards, alongside more than one accolade for Best Online Broker 2017 – these coming in from Golden Bull Awards, Handelsblatt as well as similar titles.
DEGIRO won Cheapest Broker 2017 and Best Broker 2017 from Investir and Rankia respectively. This is all just from one year, too. A quick look through recent archives reveals a win for the Best Online/Execution-Only Stockbroker 2016 at the Investment and Wealth Management Awards 2016, which came with the note that “DEGIRO has shaken up the world of UK discount broking”. With their tagline still being their much cheaper commission cost, it seems clear that DEGIRO have stuck to their goal and carried through with it to increase their market share to where they are today. Winning awards for best and cheapest broker well as being noted as a mobile broker suggest they are aware of building a great trading platform.
What is the DEGIRO Minimum Deposit?
For those wondering what the DEGIRO minimum deposit is, it happens to be an easy one: zero, less than one, nothing. That’s right. It’s not something you’ll see with every broker comparison, but DEGIRO has no minimum for you to get involved and investing. However, although you can quite literally deposit £0.01 to begin, there is a little more involved before you can start trading. A quick online search reveals that a deposit is not quite as simple as putting your card details into an online form, putting in some personal details such and name and location, and authorising payment.
Registering for your DEGIRO minimum deposit will mean that you have to pay directly into their bank. This may seem a little unusual, but it is also considered one of the safest ways to pay – after all, bank to bank transfers will cut out any middlemen and allows them to keep costs low. Nearly all transactions you carry out on a website – buying clothes, food or services – will incur a fee to the trader by means of the mechanism used to transfer money from the card to their bank account. However, by sidestepping this issue, DEGIRO can carry on with what they do best – keeping costs low for their customers. Besides, with most people having online and mobile access to their bank accounts in this day and age, it is not necessarily going to be a huge inconvenience to many investors.
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DEGIRO: The Lowest Rates
DEGIRO has, at various points, described itself as the cheapest broker, able to offer fees well below what you would expect from your typical broker. Although there may now be challengers to this structure, since DEGIRO began to gain traction in 2015, they can still hold true to the claim that they are far cheaper than many others. Although their original intention was to become a platform for professional brokers who wanted to reduce their fees, they now frame themselves as offering a professional broker service, at retail rates, for retail investors. This leads them to offer what they say is the best stock broker: an offering of a rate 85% less than that of their competitors, which is quite a feat.
With their other methods of cutting costs as highlighted above, however, it seems there are ways to cut costs without cutting corners. What is also interesting is that they offer a “cost calculator”’ to potential investors, so they can input what they expect to trade in a year, and DEGIRO will tell you exactly how much you’ll pay in fees. What’s more, DEGIRO can also distinguish for you the difference between how much of that figure is from what goes to them and how much of it goes to third parties such as funds or leverage products. With this level of transparency and clear removal of jargon from the terminology, it’s not hard to see why a platform like this is proving popular.
What Markets Does DEGIRO Offer?
The strapline on DEGIRO’s website is simple – offering worldwide investing availability with access to over 60 different exchanges globally, spanning 30 countries and over two million products. The first list of offerings on their website starts with shares, and many of them. There are all the stock exchanges you would expect to see from a stock broker, and this one doesn’t disappoint.
- Access to worldwide exchanges
- Clear routing types
- Different trading instruments available
- Clear order types
There are two types of routing mechanisms available, with some offering “Direct to Market” and some offering “SOR”, or “Smart Order Routing”, which basically allows you the pick of execution as it offers you the best prices for any given exchange. These exchanges include markets in Europe, North America, Asia and Oceania. There are also bonds and CFDs available on European exchanges, and options and futures there for you to invest in worldwide market.
DEGIRO also makes it clear which products can be invested in in terms of the type of order – so you know that, for example, you cannot get market order on your options, leveraged products aren’t classed as good until cancelled, and so on. This attempt to make everything so clear is definitely a draw for many investors, as it can well be seen that some trading platforms use language and an approach that can make it hard for those who don’t understand investing but would like to, to get involved, and things like this help.
What is the DEGIRO Trading Platform Like?
Having won awards for more than just the availability of low fees, it would appear that DEGIRO are also determined to provide a trading platform for all investors, both now and in the future, and demonstrate that can rely on the service. With innovations including their “QuickOrder” function, which allows for a fast response when you see something happen in real-time that you want to trade in immediately. They also offer streaming trading prices so you can keep up to date as things happen and make informed decisions. DEGIRO also offer a mechanism that displays how many stocks you purchase as well as the exchange between currencies.
You can also find handy tools, such as bookmarking investment potential you want to come back to, with a favourites setting. These handy little tools may also be offered by other trading platforms, but what this DEGIRO review highlights is simply how much DEGIRO wants to place this at the forefront of everybody’s minds – this is what they’re about and they want people to know it. Not every broker makes it as clear as this to see all the different options, and DEGIRO is clearly on one side of the fence with this. User-friendly platforms are very much growing in number as investing is increasingly being seen less as a reserve solely for those who work in stock exchanges.
The DEGIRO Cash Fund
Due to the way they were set up, it seems that DEGIRO operates a little differently to some other brokers, which is something they sought to make clear. Following new legislation intended to tighten restrictions around Fundshare Cash Funds, stricter investment policies now apply to some of their Cash Funds, including FundShare EUR Cash Funds, the FundShare USD Cash Fund, and the FundShare GBP Cash Fund. In effect, this will reduce the time available on each loan and the credit ratings of each loan will also increase.
- Adherence to legislation
- Transparent reasoning
- Asset protection
- Lower risk
They also go on to explain money market funds – which they describe as necessary as they are an investment firm rather than a bank, and from their base in The Netherlands, it is prohibited to hold the cash of their clients. This has more than one benefit, with the main being the sudden and unexpected liquidation or similar of the investment firm, which would mean that all your assets are protected under this strategy. The money market firms also allow for as low a risk as possible and aim to fund each trade as close to market rate as can be viable. It then reveals that this kind of policy is used to protect money in large holdings such as pension funds, with over one trillion euros being held in these money market funds all over Europe. These kinds of policies are great if you plan to invest large amounts.
One of Europe’s Largest Trading Platforms
DEGIRO is by no means afraid to shout about how well they think they’re doing, and they seem confident in their reasoning behind calling themselves one of Europe’s largest trading platforms. They already say they are “well on the way” to becoming the biggest on the continent. Figures suggest these claims of growth are well-founded, with an increase of 67% in open accounts for the first quarter of 2018 compared to the previous year, which is an impressive level of growth. If you need another example, their revenue is up by almost half across the same period, with transactions up 30%.
- Substantial growth within one year
- Revenue up 49% from 2017
- Open accounts up 67%
- Transactions also up 30%
These figures certainly highlight why the steadily improving noise and traction around DEGIRO appear well-deserved. Already, at the time of writing [05/18], they have amassed 4.6 million transactions. It is definitely unusual to see this kind of regularly updated information about a private company, especially an investment firm, and there may well be a good chance that this kind of transparent intention would appeal to investors who feel that a regularly-evolving website is just as important as the platform itself – with credence being lent to the feeling that not too many stock brokers offer quite the same feeling of being kept in the loop. If this is what you’re looking for in a service, this may be the one for you.
DEGIRO: The Verdict
The fact that DEGIRO does not require a minimum deposit make it plain and obvious that the like to do things a bit differently. By choosing only to allow deposits through direct bank transfers, this kind of canny cost-reduction has allowed them to redirect these potential lost funds into reducing fees significantly compared to many of their rival brokers.
It has also catapulted them firmly into the spotlight as one of the market leaders in Europe in the last couple of years. The most appealing part of DEGIRO, aside from the fact that anyone who wants to invest, can – with only £0.01 needed to begin – is simply the level of importance they place on reducing jargon, being clear about their premise, and being as up-front and updated as they can. With several awards in the bag, it may not be long before more come along to join their trophy cabinet.