Degiro: A Broker That Offers You International Diversification

October 11, 2020
Brokers
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Degiro is an Amsterdam broker with 12 years of experience that offers investment services in 18 countries. Also, the broker offers you the possibility of diversifying your portfolio internationally because you can trade stocks, ETF, funds, bonds, options, futures and cryptocurrencies in 60 different markets around the world. If you are interested in a European broker with a great international opening and that meets high regulatory standards, Degiro can be an excellent alternative for you.

It is true that Degiro is a broker that has good characteristics in several aspects. But, we strongly believe that Capital.com is the best online trading platform because is one of the easiest and cheapest ways to trade CFDs on equities, commodities, indices, Forex pairs and cryptocurrencies anywhere in the world. Capital.com offers you zero fees on intra-day trading, a lightning-fast web platform and their proprietary Negative Balance Protection. Also, Capital.com gives you the best chance at financial success with a clean, easy-to-use interface.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with Degiro and scored our findings on a 10-point scale across 10 distinct categories.
Fees 5
Signup Process 7
Minimum Deposit 10
Ease of Use 8
Deposit & Withdrawal Options 8
Customer Support 8
Asset Classes 7
Referral Program 1
Demo Account & Educational Resources 3
Safety & Regulation 10
Total 67

What is Degiro?

Degiro is an Amsterdam broker that was created in 2008 and operates under the supervision of The Dutch Authority for Financial Markets (AFM) and the Financial Conduct Authority (FCA) in the UK. Additionally, the broker follows the prudential supervision politic of the Dutch Central Bank (DNB).

Today, Degiro has grown substantially with over 200,000 clients using the platform. Degiro is active in 18 countries, employing 180 people. Also, it is the first Pan-European broker offering clients access to over 60 exchanges worldwide.

Degiro offers its services in the following countries:

Czech RepublicIrelandPoland
DenmarkItalyPortugal
GermanyHollandFinland
SpainNorwaySweden
GreeceHungarySwitzerland
FranceAustriaUnited Kingdom

Degiro On Brexit

With the results of the UK referendum on EU membership voting to leave the EU, there have been many questions surrounding Degiro and the UK.

Degiro provides its licensed investment services, based on the MiFID cross-border service regime under EU law. This regime allows EU investment firms to “passport” their investment services, and provide these to other EU/EEA countries.

As the formal negotiation process is currently ongoing and no formal decisions have been made, the UK remains part of the single market and retains MiFID. This means that currently there is no change in legislation or any changes announced and as such Degiro’s investment services in the UK remain unaffected.

Pros & Cons

Pros

  • Meets high international regulatory standards.
  • Offers variety of markets on an international level.
  • No minimum deposit.
  • Phone support.
  • Cost calculator.

Cons

  • It is not possible to use credit/debit car to fund or make withdrawals.
  • No demo account.
  • No live chat.
  • There are trading fees.

Account Types

 

#1 Fees

It’s important to note that Degiro is not a zero-commission broker and you will be charged trading fees. These fees will depend on the exchange and the type of instrument you decide to trade. In the following tables, we present the fees that the broker contemplates in its investment platform:

Stocks

ExchangeFee
London Stock Exchange£ 1.75 + 0.014%
United States€ 0.50 + USD 0.004 per share
Germany – XETRA€ 4.00 + 0.05%
Germany – Zertifikate-Börse Frankfurt€ 2.00 + 0.11%
Germany – Frankfurt€ 7.50 + 0.09%
Austria, Belgium, Denmark, Finland, France, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland€ 4.00 + 0.05%
Canada€ 2.00 + CAD 0.01 per share
Australia, Hong Kong, Japan, Singapore€ 10.00 + 0.06%
Poland€ 5.00 + 0.16%
Czech Republic, Greece, Hungary, Turkey€ 10.00 + 0.16%

Bonds

ExchangeFee
The Netherlands, Belgium, Portugal, France€ 2.00 + 0.06%
Germany – Xetra / Frankfurt€ 5.00 + 0.05%
OTC Bonds€ 35.00 + 0.03%

Options

ExchangeFee
Eurex (Germany)€ 0.75 per contract
MEFF (Spain)€ 1.50 per contract
Euronext LIFFE (The Netherlands, Belgium, France, Portugal)€ 2.00 per contract
Other Countries€ 2.00 per contract

On the other hand, Degiro does not contemplate the collection of any fee for inactivity, deposit or withdrawal of funds. But, there are some charges when you want to transfer your investment portfolio to other brokers.

One element that can help you have a clearer idea when investing in Degiro is that the broker allows its investors to have the exact calculation of transaction costs thanks to a calculator that you can access for free. The calculator will allow you to choose the financial asset, the exchange, the amount per transaction and even the number of transactions per year.

Degiro calculator

Although Degiro does not charge a fee for inactivity, withdrawal or funding of accounts, it loses points in this category because you will have to pay commissions when you trade on the investment platform and although the fees seem to be low, little by little they accumulate and subtract part of your capital.

If you are looking for a zero commission broker with which you can save money every time you trade, we recommend Capital.com and FX Choice.

Degiro Fees Score: 5/10

#2 Signup Process

You can open a free account and become a client in Degiro entirely online. To open an account, you will need to have an EU/Norwegian/Swiss bank account in your name, the details of which should be registered to your Degiro account.

To verify the identity of the party opening the account, Degiro must verify that the name you register matches entirely with the name on the bank account. Thus, the broker asks that you register with all first, middle, and last names. In general terms, Degiro verifies your identity through a process called bank-derived-identification; that is why it is important that you open the account with the exact name as your bank account.

Degiro offers a particular method based on bank-derived-identification that will allow you to open your account without having to upload specific documents to the trading account. But, the broker loses points in this category because, in general, you will have to wait up to 2 days for you to operate on the investment platform.

You may think that two days do not represent a long wait. However, you may need to open a trading account as soon as possible because you have spotted a great investment opportunity in the market trends, so in this case, Degiro won’t be a viable option.

If you need to open an account as soon as possible, we recommend you to Capital.com because in just 20 minutes you can open and operate on that investment platform.

Degiro Signup Process Score: 7/10

#3 Minimum Initial Deposit

Degiro does not impose any minimum deposit restriction so that you can trade on the investment platform. This aspect is very important because if you are a retail investor you can start your trading career with low amounts. For this reason, the broker is very well qualified in this category.

For your reference, below we show you the minimum initial deposit required by other brokers:

Broker                       MinimumInitialDeposit
TD Ameritrade$0 USD
Capital.com$20 USD
eToro$50 USD
Forex.com$100 USD

Degiro Minimum Initial Deposit Score: 10/10

#4 Ease of Use

Degiro offers an investment platform with a very friendly and easy to use interface. The investment platform for computers is only available in its web version and will allow you to operate with the following tools:

  • Marketnews
  • Fast trading
  • Real-time streamingprices
  • Orders placed byamount
  • Createyourfavouriteslist
Degiro investment platform

Degiro App

With the mobile application, you can invest in the same way as the desktop version wherever you are. In this way, you will be attentive to any real-time evolution of your investments. Also, the Degiro mobile application is very stable and robust. In fact, the application has very good ratings on the different download pages. In the Google Play Store it has a score of 4.3/5 and in the Apple App Store is 4.5/5.

App

The broker has a good rating. However, Degiro loses two points because it does not offer a standalone desktop software that you can install on your computer. This factor is very relevant because, in general, desktop investment platform software is much more powerful than the web and mobile versions.

Degiro Ease of Use Score: 8/10

#5 Deposit & Withdrawal Options

Degiro does not charge fees when you make deposits and withdrawals, yet it offers several different alternatives so that you can manage your capital:

  • Bank transfer
  • Sofort
  • Trustly
  • Transfer portfolio

It is important to note, however, that there are costs to transfer your portfolios to and from other brokers from and to Degiro respectively, as shown below:

  • Transfer portfolio to Degiro: € 10.00 per position
  • Transfer portfolio from Degiro: € 10.00 per position + external costs

You should consider that Degiro does not offer many alternatives when making deposits and withdrawals. There are other brokers like Capital.com that offer you many more financing and withdrawal alternatives such as credit card, bank transfer, debit card, iDeal, Neteller and Skrill. Later you will see a complete section that deals with a versus between Capital.com and Degiro.

Degiro Deposit & Withdrawal Options Score: 8/10

#6 Customer Support

With Degiro, you will be attended via email 24 hours a day, 7 days a week. However, Degiro offers customer support via telephone from Monday to Friday from 7:00 to 21:00. Below we show you how to access Degiro’s customer suppor:

In this category, the broker loses 2 points because it does not offer a variety of alternatives so that you can communicate with customer support. There are other brokers that offer you other alternatives such as live chat, WhatsApp and even call back.

If you are interested in a broker that offers you better and more versatile 24/7 customer support, we invite you to see Capital.com and Firstrade.

Degiro Customer Support Score: 8/10

#7 Asset Classes

Stocks

You can buy stocks in more than 28 markets internationally, some of which are:

Euronext AmsterdamBolsa de MadridPrague Stock Exchange
Euronext BrusselAthens Stock ExchangeIstanbul Stock Exchange
Euronext ParisBudapest Stock ExchangeNASDAQ, NYSE, NYSE MKT (AMEX), NYSE Arca
XetraEuronext DublinToronto Stock Exchange
Börse FrankfurtBorsa Italiana S.p.A.Toronto Ventures Exchange
London Stock ExchangeOslo Stock ExchangeAustralian Securities Exchange
Vienna Stock ExchangeWarsaw Stock ExchangeHong Kong Stock Exchange
SIX Swiss ExchangeEuronext LisbonTokyo Stock Exchange
OMX CopenhagenOMX StockholmSingapore Exchange

Bonds

Degiro offers you 600+ fixed income instruments.

ETFs

You can trade 5,000+ different ETFs.

Crypto

You will be able to trade cryptocurrencies with Degiro.

Although the broker offers the possibility of diversifying portfolios internationally, it loses points because it is not possible to incorporate currency pairs or precious metals within your investment portfolio.

Degiro Asset Classes Score: 7/10

#8 ReferralProgram

Degiro offers a referral program with which you can earn extra money. Every time you invite your friends and they open accounts and invest in Degiro, both you and your friend can receive a £ 20 transaction reimbursement. That is to say, every time you make transactions, the fees will be deducted from the bonus and not from your money.

Although Degiro offers the possibility of earning extra money with the referral program, you really cannot invest that money. In other words, if you invite several friends you can only accumulate a balance to pay the fees associated with your transactions. Take into account that if you are a long-term investor, your volume of transactions will tend to be low and this type of bond does not turn out to be so impressive. Also, the bonus could be higher. For these reasons, the broker loses a lot of points in this category.

Degiro Referral Program Score: 1/10

#9 Demo Account & Educational Resources

Demo Account

Degiro does not offer a demo account with paper money. This aspect is important in a broker because it allows you to test the investment platform and even create strategies without putting your money at risk.

EducationalResources

Degiro offers you educational content that can be of great help so that you stay in constant learning and even soaked in the topics that are trending in the investment world. The broker gives you access to the following resources:

  • Blog
  • Educational videos
  • Strategies
  • Tutorial
  • Financialproductslessons

Although Degiro offers excellent educational material with which you can complement your strategies, it loses a lot of points in this category because it does not offer you the possibility of opening a demo account with which to practice and design strategies without the risk of losing money.

Degiro Demo Account & Educational Resources Score: 3/10

#10 Safety & Regulation

Degiro is under behavioural supervision by Netherlands Authority for the Financial Markets (AFM) and prudential supervision by the Dutch Central Bank (DNB). Also, the broker has been granted a license pursuant to article 2:96 of the Act on Financial Supervision in the Netherlands, to act as an investment firm.

Degiro has its registered office and statutory seat in Amsterdam in accordance with its articles of association. Also, it is registered with the Chamber of Commerce and Industry in Amsterdam under number 34342820.

Degiro also meets high regulatory standards in the UK as it is registered in the Financial Conduct Authority (FCA).

Degiro definitely transmits security and reliability thanks to its compliance with high regulatory and safety standards. For this reason, the broker gets the highest score in this category.

Degiro Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

Degiro vs. Capital.com

Selecting the broker that best suits your investment strategies and plans is one of the decisions you must make with the greatest amount of information available so that you can operate without distractions and focus on making money. Moreover, it should also allow you to be confident when investing your money by letting you do the best analysis possible at the same time offering you the lowest rates. Taking into account the most relevant aspects for an investor, we prefer Capital.com over Degiro for the following reasons:

It Has The Best Fee Structure

Capital.com doesn’t charge any fees on any asset that you trade: stocks, commodities, cryptocurrency, indices, forex, ETFs, or anything else. It doesn’t charge monthly or annual fees, inactivity fees, or deposit or withdrawal fees, either. It also offers tight spreads on trades, unlike other zero-fee brokers, who make their money on wide spreads. Capital.com only makes money on the overnight fees on leveraged trades, so if you trade without leverage, you’ll never pay any fees.

It Offers An Unlimited Demo Account

One factor that is essential when testing an investment platform is being able to access a demo account, and in this aspect, Degiro falls short because it does not offer one. With Capital.com you can truly test the platform since you will be able to use an unlimited demo account to test each one of the tools and features of the investment portal for as long as you want.

Far better withdrawal options

Degiro does not offer many deposit and withdrawal. In contrast, we can affirm that Capital.com is a better choice because you will be able to fund or withdraw from your account in many different ways. In Capital.com you can use a credit card, bank transfer, debit card, SOFORT, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, Neteller and Skrill. Additionally, just like with Degiro, you’re never charged a fee to deposit or withdraw money with Capital.com either.

Degiro In Summary

  • Degiro is an Amsterdam broker with 12 years of experience.
  • It operates under the supervision of The Dutch Authority for Financial Markets (AFM) and the Financial Conduct Authority (FCA) in the UK.
  • Degiro’s fees will depend on the exchange and the type of instrument you decide to trade.
  • You can open a free account and become a client in Degiro entirely online.
  • Degiro does not impose any minimum deposit.
  • Degiro offers an investment platform with a very friendly and easy to use interface.
  • Finally, Degiro transmits security and reliability thanks to its compliance with high regulatory and safety standards.

If you are interested in a European broker based in Amsterdam that allows you to create diversified portfolios internationally and that meets high regulatory standards, Degiro may be a good alternative for you.

However, it is our responsibility to recommend with the greatest transparency the results in the search for the best broker in the market. In this sense, we are completely confident that Capital.com is a broker that offers you many more features than Degiro and that will allow you to exploit your profits to the maximum.

If you’re a new trader or an experienced trader looking fora new broker, Capital.com will allow you to open a demo account to practice and structure profitable investment strategies before risking any money. Also, it won’t charge you any type of commission or fee, ever, allowing you to save money every time you trade so that you can increase your capital and find financial independence.

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