DEGIRO review

DEGIRO Review

DEGIRO review

Broker rating: 9.3

No trading bonus

DEGIRO broker review

DEGIRO is a relatively new broker which was founded in 2008 by five employees of Binck, another large Dutch broker. Since then, DEGIRO has been growing rapidly, mainly because of its very low… continue reading

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Broker information

Broker DEGIRO
Website link http://www.degiro.co.uk.com
Founded in the year 2008
Main office based in Rembrandt Tower – 9th floor 1096 HA Amsterdam The Netherlands
Contact possibilities Email: clients@degiro.co.uk, phone, servicedesk
Available languages English, Italiano, Deutsch, Español, Français, Português, Pyccĸий, العَرَبِية‎
Trading platform Self-designed trading platform with live quotes provided by V.W.D Group
Minimum first deposit €1
Minimum amount traded €1
Maximum amount traded €1
Welcome bonus No welcome bonus
Pay out information Fast payout within 48 hours
Leverage Varies per type of contract
Spread Usually very tight spread on liquid products
Demo account Click to open a Demo account
Regulated Yes
Regulated by Regulated by De Nederlandsche Bank (DNB) and Autoriteit Financiele markten (AFM)
Extra fees Yes
Extra fees information €2,50 per year if you trade a foreign exchange
Available accounts Cash account, Margin account
Methods of deposit Bank transfer, Visa, MasterCard, iDEAL
Methods of withdrawal Bank transfer, Visa, MasterCard, iDEAL
Number of tradable Assets 10000+
Types of tradable assets Forex, Stocks, CFDs, Commodities, Indices, ETF, Futures, Bonds, Options
US traders allowed No
Trading on smartphone Yes
Trading on tablet Yes
Broker Score 9.3


In this article, we explain everything you need to know about online broker DEGIRO. We will discuss the trading commissions, how to open an account, share our experiences with the platform, and show you how to deposit and withdraw money from your DEGIRO account.

DEGIRO is a relatively new broker which was founded in 2008 by five employees of Binck, another large Dutch broker. Since then, DEGIRO has been growing rapidly, mainly because of its very low transaction costs. In this article, we take a look at the features of DEGIRO and discuss how it is possible that it is often up to 80% cheaper than comparable brokers.

Why DEGIRO?

  • DEGIRO is cheaper than its competitors when it comes to buying financial products
  • It offers the possibility to trade on different exchanges across the world
  • There are no hidden fees: having an account is completely free
  • It is possible to trade on margin
  • Extremely easy to open an account and to deposit and withdraw money

Click here to open an account with DEGIRO >>

To whom is DEGIRO an appropriate broker?

DEGIRO is appropriate for individual investors who have a certain capital available to invest. In contrast to CFD brokers like Plus500, DEGIRO is a broker where you actually buy the underlying asset. DEGIRO offers a wide range of investment products, including stocks from companies around the world.

In addition to the more standard products DEGIRO also offers the possibility to trade in bonds, options, and some CFD’s. Because its transaction fees are incredibly low, you can open an account and start trading the financial markets with as little as a few hundred euros.

Trading with DEGIRO: our personal experience

DEGIRO does not have an own offline software package. You can trade only on their online platform. Because of the low transaction costs, I opened an account with DEGIRO a couple of years ago and I have been trading with this broker quite extensively. Although I’m satisfied about the broker in general, I do believe its trading platform could be a little more user friendly.

As soon as you have made your first deposit with DEGIRO you can start looking for the security you want to invest in. This is a screenshot I made from two profitable transactions I did on the platform of DEGIRO. In this case I bought shares of ABN AMRO and Plus500.

Opening and closing positions is very easy within the platform of DEGIRO. Once you have found the security you want to invest in you simply click Buy. You will then need to give the amount of securities you want to buy. Again, you click buy and the trade is done. If the trade was successfully executed it will be added to your portfolio. This way you can always keep track of your investments.

Things like dividend are automatically credited to your account. The provision of information within the trading platform could still be improved. For example, it is sometimes unclear when exactly dividends were credited. Compared to other online brokers who provide very advanced trading software, the trading platform of DEGIRO is certainly not the most user-friendly.

DEGIRO trading costs

The actual transaction costs can easily be seen on the website under the header “FEES”. DEGIRO does not charge any servicing fees; you really only pay transaction costs for buying or selling financial products. Usually a fixed amount is charged for every transaction, which is supplemented by a variable amount.

For example, when you buy Shell shares for €1,000 the transaction costs will be just €2,20. At most other brokers this is usually around €10. A transaction of KPN shares worth €50,000 costs only €12, which is almost 80% cheaper on average than its competitors. The total transaction fees increase as you buy more shares, however the relative amount paid in transaction fees decreases as you buy more shares. DEGIRO is cheaper than its competitors in terms of transaction costs for almost any tradeable instrument; for regular shares, levered products, trackers, options, and futures.

How can DEGIRO be so much cheaper?

DEGIRO is a lot cheaper than other brokers like Binck or IG. Compared to traditional banks the gap in transaction fees is even larger. But how is it possible that DEGIRO can be so much cheaper than other brokers?

This is due to a number of decisions they have made. First of all, they decided to establish their headquarters in Sofia, Bulgaria to keep wages low. These lower wages are one reason why DEGIRO can keep its transaction fees low.

DEGIRO also allows shorting. In that case is lends shares to its clients, an operation that brings with it a little risk for DEGIRO. To reduce this risk however, DEGIRO can cancel off some of the long and short transactions internally. It is then not required to effectively buy these assets in the market.

Finally, as DEGIRO is becoming larger and larger, it is aiming for economies of scale. Already, DEGIRO is operating in 18 countries and by allocating its fixed costs among a larger customer base it can significantly reduce its operational costs per transaction. Even though DEGIRO is growing very rapidly, it still has a long way to go to become one of the biggest brokers in the world.

DEGIRO is operating in 18 countries

Choose your country to directly go to the website of DEGIRO in your country and in your language.

Česká republika    Danmark    Deutschland    España    Ελλάδα    France    Ireland    Italia    Nederland    Norge  Magyarország    Österreich    Polska    Portugal    Suomi    Sverige    Switzerland    United Kingdom

Review conclusion: trade with DEGIRO?

DEGIRO is still a relatively new broker with a strong urge for expansion. Due to the low trading fees and simple trading software it offers individuals investors the opportunity to start trading with a relatively modest amount of capital. In short, DEGIRO is an extremely cheap broker without any bells or whistels but which offers great value for your money.  

Start trading today!

DEGIRO Logo

Advantages

  • Lowest transaction fees 
  • A wide range of tradeable products available
  • Very low minimal deposit of 1 euro

Disadvantages

  • No welcome bonus for new clients

Screenshots

DEGIRO review
DEGIRO trading platform