Degiro

Overview

DEGIRO, founded in 2008 and headquartered in the Netherlands, operates as an online brokerage offering a wide range of trading instruments including stocks, ETFs, bonds, futures, options, funds, margin loans, and structured products. Despite its competitive fees and maximum leverage of 1:300, the platform operates without direct regulatory oversight, raising concerns among some users about transparency and investor protection. DEGIRO provides access to its trading platforms, Webtrader and Mobile App, for executing trades, while customer support is available primarily through email. While the platform is active and functional, some users have expressed skepticism, labeling it as a potential scam.

Regulation

DEGIRO operates without direct regulatory oversight, which can raise concerns for potential users.Regulation plays a crucial role in ensuring transparency, security, and accountability within financial markets, providing investors with a level of confidence and protection. The absence of regulatory oversight may lead some investors to question the platform's reliability and trustworthiness, particularly in terms of safeguarding their investments and personal data. While DEGIRO may offer competitive fees and a user-friendly interface, the lack of regulation could pose inherent risks, potentially exposing users to vulnerabilities such as inadequate investor protection measures or insufficient oversight of trading practices. As such, individuals considering DEGIRO as their preferred brokerage should weigh these factors carefully and conduct thorough research to assess the platform's suitability for their investment needs and risk tolerance.

Pros and Cons

DEGIRO presents a mix of advantages and drawbacks that investors should carefully consider. While the platform offers competitive fees, a diverse range of trading products, and a user-friendly interface, it operates without direct regulatory oversight, potentially raising concerns about transparency and investor protection. Additionally, criticisms regarding customer support responsiveness and occasional labeling as a potential scam highlight areas for improvement. Investors should weigh these factors when evaluating DEGIRO as a brokerage option.

Market Instruments

Degiro je offers multi asset brokerage service in more than 84 assets, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, warrants, and many more.

1. ETFs (Exchange Traded Funds): DEGIRO allows investors to trade ETFs listed on 19 different stock exchanges, encompassing 17 in Europe and two in Asia and Oceania. ETFs are investment funds that are traded on stock exchanges, offering exposure to a diversified portfolio of assets such as stocks, bonds, or commodities, typically at a lower cost compared to traditional mutual funds.

2. Stocks: Investors can trade shares from 30 different stock exchanges worldwide, including major exchanges in Europe, North America, and Asia/Oceania. Stocks represent ownership in a company and provide investors with the opportunity to profit from capital appreciation and dividends.

3. Bonds: DEGIRO facilitates bond trading from six prominent European stock exchanges, allowing investors to diversify their portfolios with fixed-income securities issued by governments, corporations, or municipalities. Bonds offer regular interest payments and principal repayment upon maturity.

4. Futures: DEGIRO provides access to futures trading on 14 exchanges, enabling investors to speculate on the future price movements of underlying assets such as commodities, currencies, or stock market indices. Futures contracts offer potential for profit through leveraging and hedging strategies.

5. Options: The platform supports options trading on 12 stock exchanges, giving investors the ability to buy or sell options contracts based on underlying assets such as stocks or indices. Options provide flexibility for investors to hedge against market risks, generate income, or speculate on price movements.

6. Funds: DEGIRO offers access to investment funds, allowing investors to invest in professionally managed portfolios of stocks, bonds, or other assets. These funds may include mutual funds, index funds, or actively managed funds, providing diversification and professional management expertise.

7. Margin Loans: DEGIRO provides margin trading facilities, allowing investors to borrow funds to amplify their buying power and potentially increase returns. Margin loans enable investors to leverage their investments, but they also involve higher risks and potential for losses.

8. Structured Products: DEGIRO offers access to structured products, which are financial instruments created to meet specific investment objectives and typically combine elements of derivatives and traditional securities. These products may offer tailored risk-return profiles and exposure to various asset classes or market strategies.

Service Plans

DEGIRO offers several account profiles to cater to different investor needs and preferences:

Custody Profile:Suitable for investors prioritizing security and long-term investment holdings providing access to investment services such as Debit Money and Debit Securities, excluding Derivatives trading. Securities are held by Beleggersgiro Long Only with prime brokers and custodians, ensuring asset segregation and protection against bankruptcy. Higher fees may apply for this service due to enhanced security measures.

Basic Profile:Designed for investors seeking active investment opportunities with low fees. Offers access to DEGIRO's investment services excluding Debit Money, Debit Securities, and Derivatives. Applies standard DEGIRO fees and charges.

Active Profile:Suitable for investors who want to actively trade in both Securities and Derivatives with moderate use of Debit Money and Debit Securities. Provides access to investment services including Debit Money, Debit Securities, and Derivatives, subject to certain limitations. Applies standard DEGIRO fees and charges.

Trader Profile:Ideal for investors seeking active trading opportunities with full access to Debit Money, Debit Securities, and Derivatives. Offers comprehensive investment services, allowing for active trading in Securities and Derivatives. Applies standard DEGIRO fees and charges.

Day Trader Profile:An upgrade to the Trader Profile, available during specific trading hours. Enables more active trading during market hours. Different risk calculation methods may apply, allowing for increased exposure during trading hours. Subject to strict risk management requirements, failure to comply may result in fines and cessation of daily upgrades to the Day Trader profile.

Leverage

The broker offers a leverage ratio of 1:300, allowing traders to control positions in the market worth up to 300 times their initial investment. This amplifies both potential profits and losses, necessitating careful risk management.

Fees

DEGIRO offers competitive fees for trading stocks and ETFs, with slight variations depending on the country of operation:

Stock Trading Fees:

1. Fees vary based on the exchange used.

Examples of fees for Swiss investors:

• Switzerland: 5 CHF + 1 CHF

• United States: 1 EUR + 1 EUR

• France, Germany, Italy: 3.9 EUR + 1 EUR

• Hong Kong: 5 EUR + 1 EUR

1. The total fee includes both the fee charged by DEGIRO and the fee charged by the external party (stock exchange).

ETF Trading Fees:

1. DEGIRO distinguishes between ETF and stock trading fees.

1. Example fee for trading ETFs worldwide: 2 EUR + 1 EUR

1. These fees are relatively low, but investors should note the additional 1 EUR service fee per transaction.

Special Offer for Core ETFs:

1. DEGIRO offers reduced transaction costs for certain ETFs called Core ETFs.

1. Investors can make one free trade per month for a Core ETF, and subsequent trades for the same ETF in the same direction are also free.

1. Although transaction costs are waived for Core ETFs, the 1 EUR service fee still applies.

Currency Exchange Fees:

1. Fees apply when buying or selling securities in a currency other than the account currency.

1. Default Auto FX Trader fee: 0.25% of the transaction value.

1. Manual exchange option fee: 10 EUR + 0.25%.

1. Currency exchange fees are relatively high, especially for manual exchanges, but still lower than some other brokers.

Connectivity Fees:

1. A connectivity fee of 2.5 EUR per year per stock exchange is charged.

1. The stock exchange for the investor's home country may be exempt (e.g., SIX for Swiss investors).

Deposit & Withdrawal

Depositing funds into your DEGIRO account involves two main methods: manual bank transfer or direct deposit (SOFORT). Here's how you can deposit funds:

Manual Payment:

1. Log in to your Trading Platform.

2. Hover over the 'Deposit/Withdraw' button in the top right corner (Webtrader) or tap on the menu icon in the upper left corner (app).

3. Select 'Deposit' and then choose 'Manual transfer to DEGIRO'.

4. Transfer funds from your bank using the details provided.

5. If you have multiple accounts with DEGIRO and the beneficiary name is 'Stichting Degiro', ensure to mention the username of the target account in the transfer description.

Withdrawing funds from your DEGIRO account back to your primary registered bank account involves the following steps:

1. Click on 'Deposit/Withdraw funds' in the right upper corner of the trading platform (Webtrader) or access the section through the menu in the app.

2. Select the withdrawal option.

3. You cannot withdraw funds that are currently invested.

4. Withdrawals typically take 2-4 working days to be completed.

Overall, depositing funds into your DEGIRO account can be done via manual bank transfer or direct deposit, while withdrawing funds back to your bank account can be initiated through the platform's 'Deposit/Withdraw funds' section.

Trading Platforms

DEGIRO offers an award-winning trading platform equipped with a comprehensive suite of tools and features tailored to cater to investors of all levels of expertise. From novices to seasoned experts, individuals can access their portfolios, streaming quotes, market reports, and extensive order management tools, all presented within an intuitive interface. With functionalities like dark mode for comfortable trading day or night and combination orders for executing multiple strategies simultaneously, the platform ensures a seamless and adaptable trading experience. Users can stay informed with real-time news, economic calendars, market overviews, and winners/losers lists, while interactive charts and financial information empower them with valuable insights for informed decision-making. Enhanced security measures such as Touch ID/Face ID and two-factor authentication provide users with peace of mind, ensuring their accounts are protected against unauthorized access. Constantly evolving based on user feedback and innovative advancements, the platform remains committed to delivering the optimal trading experience for investors globally.

Customer Support

DEGIRO's customer support, despite offering contact options such as email at objednavky@degiro.cz for Czech clients or clients@degiro.comfor general inquiries, is often criticized for its slow response times and lack of efficiency in addressing user inquiries. Many users report frustration with delayed or generic responses from the support team, leading to dissatisfaction and a sense of unresponsiveness. Additionally, some clients express frustration with the limited availability of customer support channels, feeling left without adequate assistance when facing urgent issues or technical difficulties.

Conclusion

DEGIRO offers a diverse range of trading products and account profiles, allowing investors to access global markets and tailor their investments to their preferences. However, the platform operates without direct regulatory oversight, raising concerns about transparency and investor protection. While DEGIRO boasts competitive fees and a user-friendly interface, its customer support has faced criticism for slow response times and limited availability, leading to dissatisfaction among users. Additionally, some individuals have labeled DEGIRO as a potential scam, casting doubt on its reliability and trustworthiness. This underscores the importance of thorough research and consideration of risks before investing with the platform.

FAQs

Q: Is DEGIRO regulated？

A: DEGIRO operates without direct regulatory oversight, which can raise concerns for potential users.

Q: What trading products does DEGIRO offer？

A: DEGIRO provides access to a diverse array of financial instruments, including stocks, ETFs, bonds, futures, options, funds, margin loans, and structured products.

Q: What are the account types available on DEGIRO？

A: DEGIRO offers several account profiles, including Custody, Basic, Active, Trader, and Day Trader, catering to different investor needs and preferences.

Q: What is the leverage offered by DEGIRO？

A: DEGIRO offers a leverage ratio of 1:300, allowing traders to control positions in the market worth up to 300 times their initial investment.

Q: How can I deposit and withdraw funds on DEGIRO？

A: Depositing funds into a DEGIRO account can be done via manual bank transfer or direct deposit, while withdrawing funds back to a bank account can be initiated through the platform's 'Deposit/Withdraw funds' section.