DEGIRO is one of the largest brokers to invest in stocks in Europe.

It has been awarded with 59 international awards, including the Rankia award for best broker 3 years in a row, between 2016 and 2018.

Today I’m going to tell you everything about DEGIRO: investment products, fees, regulation, how to open an account and much more.

DEGIRO is a great broker with very low commissions.


What is DEGIRO

DEGIRO is a stockbroker established in Amsterdam. It began its journey in the Netherlands in 2008, offering financial services to professional investors.

A few years later it decided to open up to retail investors, and that’s how in 2013 they launched their services for the clients in the Netherlands.

In 2014 they began to expand throughout Europe, arriving to UK in 2015.

DEGIRO is a broker that allows you to buy shares of companies from many countries around the world, minimising the cost to investors.

One of the reasons DEGIRO is cheaper than other brokers is because it is an online broker. It has no offices, and consequently that allows them to reduce their expenses.

To invest with DEGIRO you will have to do it online, with your computer or with the DEGIRO app on your mobile.


Advantages of DEGIRO

DEGIRO has many advantages, so I am going to focus on the most important ones.


Very low fees

The fees you pay when you buy stocks are very small.

DEGIRO allows you to access global financial markets with a low cost approach for the investor, paying much lower fees than you would in other brokers like Interactive Brokers or Saxo Bank.

We are going to see all the fees details in a bit, and you will realise that there are some products where DEGIRO does not charge any commission.


Easy-to-use platform

Another great advantage of this broker is its platform. It is very intuitive and easy to follow.

It’s easy to trade with DEGIRO, whether you are buying Facebook shares or investing in a S&P500 ETF.

Once you register on this platform you will see that investing with it has no mystery.


Many investment products

DEGIRO gives you access to stock exchanges in many countries, so you can invest worldwide.

It also allows you to buy bonds, ETFs (trackers), investment funds, futures, options and derivatives.


Regulated by financial authorities

DEGIRO is fully regulated by financial authorities and complies with all the required regulation.

Since it is based in the Netherlands, DEGIRO operates under the supervision of the Dutch Authority for Financial Markets (AFM).

Additionally, the Dutch Central Bank (DNB) offers prudential supervision.

In order to operate in the United Kingdom, DEGIRO is also registered at the Financial Conduct Authority (FCA).

DEGIRO is registed in the Financial Conduct Authority in UK.


Full online broker

All operations can be done online. With a couple of clicks you can buy and sell shares of any company in UK, US, Germany and many other countries.

You can login with your phone, since DEGIRO allows mobile trading. In order to do that you need to download the app, on Google Play or Apple Store.


Disadvantages of DEGIRO

The main disadvantages of DEGIRO are:

  • No demo account
  • You cannot trade cryptocurrencies, Forex, CFDs or binary options
  • There are few mutual funds
  • You cannot invest through ISAs accounts

I personally don’t think it’s useful to invest in the stock market with a demo account. Reactions and emotions are not the same when you have real money invested.

If you want to start investing in the stock market, you have to do it with real money. Even if it’s 10 pounds. That will give you a better idea of the feelings you have when you see your money go up and down.

On the other hand, I do not invest in cryptocurrencies or complex financial products such as CFDs, so in my opinion this is not a disadvantage.

The main disadvantage of DEGIRO is that it has very few mutual funds.

If you want to choose an investment fund that beats the market (something that is highly unlikely in the long run), DEGIRO is not your broker. You will do better with Hargreaves & Lansdown, which offers you a wide range of mutual funds.

If you like index funds, DEGIRO offers you a wide range of ETFs, where you have many different indexes to choose from.

For UK investors there is another disadvantage, which is there are no ISAs accounts on DEGIRO. That means you cannot get the tax advantages that you get in the ISA accounts.

But since UK offers 12,500 £s allowance for capital gains, I believe this is not a major disadvantage.


Types of accounts offered by DEGIRO

DEGIRO offers you 5 types of accounts:


Basic Account

  • Allows you to trade stocks, bonds, ETFs, mutual funds and leveraged products
  • It does not allow options, futures or short trading with stocks
  • DEGIRO can lent up to 30% of your shares
  • No fees for getting dividends


Custody Account

  • Allows you to trade stocks, bonds, ETFs, mutual funds and leveraged products
  • It does not allow options, futures or short trading with stocks
  • Shares are not lent to third parties
  • Dividend collection fee (1£ + 3%, up to a maximum of 10%)


Active Account

  • Allows you to trade stocks, bonds, ETFs, mutual funds and leveraged products
  • Allows options, futures and short trading with stocks
  • You can use up to 50% of your margin


Trader Account

  • Same as active account, but you can use up to 100% of your margin


Day Trader Account

  • Allows a higher level of leverage and margin than the trader account

I sincerely recommend that you choose the Basic account.

The main difference between the DEGIRO Basic account and the Custody is that in the Custody the shares cannot be lent to other investors.

Once you have chosen the Basic account, you can’t switch to the Custody account, and vice versa.

Since I imagine the subject of lending the shares sounds a bit weird to you, I’m going to explain it.

One of the services offered by DEGIRO is short trading with stocks.

To save costs, DEGIRO uses for these short operations the shares that other investors have bought.

This allows DEGIRO to reduce costs and offer you services with very low fees.

The maximum amount of shares that can be borrowed is 30% of your shares.

Regarding the other profiles, they are only necessary if you want to trade complex products like derivatives, something I do not recommend.

You can make money with stocks, but it’s much easier to lose money with options, futures and derivatives.

The risk of these products is much higher.

I also don’t recommend to do Intraday trading, since it is very easy to lose money since you are performing so many trades.

I recommend investing in stocks for the long run.


How to open an account with DEGIRO

It is very easy to open an account with DEGIRO and start making money following my investment strategy.

I’m going to tell you step by step how you can open an account in DEGIRO:

  1. Sign up for DEGIRO with this link.
  2. Enter your personal data: name, email address, passport, etc.
  3. Confirm your email address by clicking on the email DEGIRO sent you
  4. You must make a bank transfer in order to verify your identity and activate the account. The transfer can be as small as 0.01£. I think we all have that 🙂
  5. Accept the contract and voila!

The DEGIRO website indicates that the process takes no more than 10 minutes, and they are right.

In addition, everything is done online. This is a very comfortable and painless procedure.


Financial products to invest with this broker

DEGIRO is a great broker, that’s why it has won 59 international awards (perhaps when you read it already has 60 :))

This broker offers you many investment products and allows you to invest in virtually every major stock market in the world.

DEGIRO is excellent for buying and selling shares due to its low fees.

The main products it offers are:

  • Stocks: this is the major advantage of DEGIRO. You can invest in companies in almost every country in the world

  • ETFs: also known as trackers, are very similar to index funds. DEGIRO has a wide range of them
  • Investment funds: they don’t have many but are working on adding more
  • Bonds: access to bonds in European markets such as Germany, France, Holland, etc.
  • Options: you can invest in options in European and American markets
  • Futures: you have access to European and American futures markets

DEGIRO does not have index funds but it has ETFs, which are very similar.

The main difference is that ETFs trade continuously and mutual funds only trade once a day.

In addition, there are 200 ETFs that you can buy and sell for free, without paying any fee (see the conditions here).

The only downside of DEGIRO is that it does not have a wide range of mutual funds. If this is what you are looking for, I recommend you look at other platforms like Hargreaves & Lansdown.


DEGIRO fees

This is without a doubt the strongest point of DEGIRO, its best advantage.

As I have mentioned before, fees are very low, especially when you buy stocks.

In the following image you have a small summary:

As you can see, you can buy US shares and pay less than 1 euro in fees. That’s great!

Here are the most important DEGIRO commissions:

  • United Kingdom: 1.75£ + 0.022% for buying and selling shares, with 5£ maximum
  • US: $0.50 + $0.004 per share
  • Austria, Belgium, Denmark, Finland, France, Italy, Netherlands, Norway, Portugal, Sweden, Switzerland, Ireland, Spain: 4€ + 0.058% per share with 60€ maximum, on most European countries
  • Canada: 2€ + 0.01CAD per share
  • ETFs: 2€ + 0.038%. There are 200 ETFs that are free (see conditions)
  • Investment funds: 7.50 euros + 0.10%, except in Fundshare Cash and Morgan Stanley Cash funds, where no commission is charged
  • Bonds: 2€ + 0.068% in most countries
  • Connectivity fee: 2.50€ euros per year for each market in which you invest (max 0.25% of the value of your account)
  • Foreign currency: 0.10% when using Auto FX (it’s the one that comes by default)

If you want more details, you can see all the fees here.

It shows you all the ETFs that do not charge fees, such as DEGIRO ETF VANGUARD S&P500, which is the one I invest in.


DEGIRO platform

The DEGIRO platform is very easy to use. It’s very intuitive, and it’s aim is to make life easy for the investor.

In addition, DEGIRO launched its new platform a few weeks ago, which I like even more.

When you sign in, DEGIRO shows you a sidebar with five important menus:

  • Markets: Shows you the price evolution of the world’s major stock indexes
On the markets menu you have the price evolution of the main European stock exchange.
  • Favorites: This menu shows you the products you’ve marked as favorites
DEGIRO favourites menu gives you the products you have marked as favourites.
  • Portfolio: it shows you the status of all the positions you have open, including today’s gains and losses
In the portfolio section you can monitor how your products are performing.

  • Activity: Shows all the buy and sell orders, dividends, deposits and withdrawals
  • Products: here you can search for any financial product you are interested in

The above shows important data about your investments in DEGIRO:

  • Balance: total value of your portfolio
  • Portfolio: value of your investments
  • GBP MMF: cash available for investment, which is currently in money market funds
  • Day +/-: variation of your portfolio value today
  • Free margin: indicates the risk of your portfolio, which depends on the products you invest. If you avoid complex products such as derivatives and short positions, it will always be positive.

Opening and closing positions is very simple. Just search for the product you want and click on buy.

Degiro allows you to set the price limit to which you want to buy and sell, . The former is known as take profit, and the latter as stop loss.

As you can see, it’s very easy to track your activities with DEGIRO platform tools.


DEGIRO bonus

Unfortunately DEGIRO has no welcoming bonus for users in the United Kingdom.

It had an an offer for new accounts opened in the Spanish platform, which is in euros.

They offered 1000 euros of fees during 100 days. This was a great offer to be honest, but this expired on the 3rd of February

Hopefully they will release a new offer soon 🙂


Other relevant information about this broker

There are other important features of a broker, such as investment safety, customer service, and a few more.

Let’s take a closer look at them 🙂


Is DEGIRO safe?

As I have mentioned previously, DEGIRO is regulated by the Dutch Authority for Financial Markets (AFM), and is also supervised by the Dutch Central Bank (DNB).

These institutions are responsible for verifying that DEGIRO complies with financial safety standards.

DEGIRO is also registered in the UK institution Financial Conduct Authority (FCA).

The Dutch Guarantee Fund (Inversor Compensation Scheme- ICS) covers your investments in DEGIRO up to 20,000 euros.

So in the unlikely event that DEGIRO went bankrupt and some of your assets could not be recovered by the Dutch Central Bank, those assets would be covered up to 20,000 euros.

DEGIRO has a business model that has been operating for 12 years now, so that gives extra safety for the investor.


What is the minimum investment required in DEGIRO?

Degiro does not have a minimum requirement to invest, so you could invest from just a penny.

If you find shares that cost a penny, you could buy them and you would have started investing.

I know that stocks at 0.01£ sounds weird, but for example the shares of the Spanish DIA supermarkets are currently trading at 0.10£.

Instead of buying a candy you can become a shareholder of DIA 🙂

Obviously I do not recommend you start investing with a penny, it would be very difficult to accumulate capital starting so low.

What I recommend you is to start investing small sums periodically.

If you start by investing 100 pounds per month, after a year you will already have 1200 pounds. And that’s without counting the profits you might get, since S&P500 last year returned 30% growth.


Customer Service

DEGIRO has a customer service that is available Monday to Friday, from 7am to 9pm on (+44) 20 3695 7834.

If you prefer to contact them through email, you can write to clients@degiro.co.uk.

DEGIRO has a great support team, you can send your queries 24 hours a day, 7 days a week.

Their response time is very short, I always got a reply in the first 24 hours, with all the information I needed.

A good example is that a few months ago I wanted to buy shares of Ferguson, but I did not find the company on the trading platform.

After writing an email to them, they added it in less than 3 days. I was able to buy it, and it’s gone up 37% since then 🙂


Transfer and withdraw money in DEGIRO

Putting money in DEGIRO is very easy.

If you want to deposit money to your account, you need to make a bank transfer to the bank account they tell you on the “deposit” section.

It is very important that you transfer money from the account you have submitted to DEGIRO. Otherwise the deposit will be rejected.

The money usually takes less than 24 hours to arrive.

To withdraw money you just have to go to the “Withdrawal” menu, select the amount, choose the bank account (in case you have more than one) and click on “Withdrawal”.

It couldn’t be easier 🙂


DEGIRO Investors Academy

DEGIRO has created an investment academy to improve the financial education of the investor, and provide more details about the platform.

It gives you more information about the type of investor you are, risks of the different financial products offered by DEGIRO, how to place an order, and much more.

If you want to delve into these topics, take a look at the investors academy.

If you want to learn more about how to start investing in stocks, I recommend you take a look at this post.


Real Time in this broker

If you are interested in real-time stock quotes, DEGIRO offers this service, but unfortunately is not free in many cases.

The Euronext market is free with all accounts except Custody.

For United Estates stock market, after you have done a transaction with US stocks, you’ll have real-time for free until the end of the following month.

For all the other markets, you can subscribe to the service in DEGIRO website. Prices range from 4£ to 10£ per month.

If you are going to invest for the long run, I don’t recommend you subscribe to real time, you don’t need it at all.


DEGIRO Review

DEGIRO has very good reviews on UK Trustpilot

Reviews on DEGIRO are unanimous. Everyone considers it a great broker.

As you can see above, the user reviews on UKTrustpilot are very good.

Its easy-to-use platform, low fees and great customer service have made DEGIRO one of the most relevant brokers in Europe.

There is a reason why DEGIRO has won the Rankia award for best broker for shares 3 years in a row.


Is DEGIRO the best broker?

If you are interested in buying stocks and ETFs, my opinion is that DEGIRO is the best broker for you.

Their commissions are unbeatable, and their range of stocks and ETFs is huge.

Here I show you a comparative table for the costs of buying shares with different brokers.

The table below compares the prices of buying stocks with different brokers.

If you buy apple stocks you save 97% of the cost by using DEGIRO.

I have been investing with DEGIRO for a year and in my opinion it is a good broker.

Its platform is very easy to use, its commissions are very low, and it is very easy to review the evolution of your investments.

For this reason I can say that DEGIRO is my favorite broker. In 2020 I plan to continue investing with them as much as I can 🙂

I am going to sum up the options you have to register on DEGIRO:

Depending on your circumstances, click on the link that suits you the most!

This is all for my super guide on DEGIRO, I hope you have enjoyed it!.

If you have any questions do not hesitate to use the comments section to ask me anything you need.

Please bear in mind that investing involves risk of loss.

If you want to learn more about investing in the stock market, I recommend you the following articles on my blog:

Categories: Stocks

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