General Information
Degiro started as a wholesale broker and have grown to be a retail stockbroker. In 2013, DEGIRO launched its online brokerage services in the Netherlands. Since then, this brokerage house has expanded across 18 European countries to provide services to retail clients. DEGIRO B.V. merged with flatexDEGIRO Bank AG in early 2021, creating online execution-only broker in Europe with its own banking license.
DEGIRO is an online brokerage platform that provides investors with access to a wide range of market instruments, including shares, bonds, currencies, mutual funds, ETFs, options, futures, crypto trackers, commodities, and leveraged products. The platform offers different account types to accommodate various investor needs, such as basic custody accounts, custody plus accounts with securities lending, active margin accounts for advanced traders, and IRA accounts for US residents. DEGIRO stands out for its low-cost trading and commission structure. It provides a browser-based trading platform called WebTrader and mobile applications for iOS and Android devices, offering essential trading functionalities. While it may have limitations in terms of advanced features and customer support availability, DEGIRO remains a popular choice for investors seeking cost-effective trading and a diverse range of investment opportunities.
Pros and Cons
RationalFX is a foreign exchange and international payment solutions provider that offers services to individuals and businesses. As with any financial service provider, there are advantages and disadvantages to consider. Understanding the pros and cons can help individuals and businesses make informed decisions when choosing RationalFX for their currency exchange and international payment needs.
Is DEGIRO Legit？
DEGIRO is an online brokerage platform that operates in the Netherlands and provides access to various financial instruments for investors. However, it is important to note that DEGIRO is currently not regulated by any valid regulatory authority. This lack of regulation means that DEGIRO does not have oversight from a financial regulatory body that typically ensures the protection of investors and enforces certain standards and rules within the industry.
When dealing with an unregulated broker like DEGIRO, there are inherent risks involved. Investors should exercise caution and be aware that the absence of regulatory oversight can leave them more vulnerable to potential fraud, unethical practices, or insufficient protection of their funds.
Market Instruments
DEGIRO offers access to a wide range of market instruments, allowing investors to trade in various financial markets. Here is a description of the market instruments available through DEGIRO:
1. Shares: DEGIRO allows trading in shares of companies listed on major stock exchanges worldwide. This includes shares of companies in different industries and sectors.
2. Bonds: Investors can trade bonds through DEGIRO. Bonds are fixed income instruments that represent a loan made by an investor to a borrower, typically a government or corporation. Trading bonds can provide income through interest payments.
3. Currencies: DEGIRO provides access to the foreign exchange (forex) market, allowing investors to trade different currency pairs. Forex trading involves buying one currency while simultaneously selling another, with the aim of profiting from fluctuations in exchange rates.
4. Mutual Funds: DEGIRO offers the ability to invest in mutual funds, which are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities, such as stocks and bonds.
5. ETFs (Exchange-Traded Funds): DEGIRO provides access to a wide variety of ETFs. ETFs are investment funds that are traded on stock exchanges and aim to track the performance of a specific index, sector, commodity, or asset class.
6. Options: DEGIRO allows trading in options, which are derivative contracts that give investors the right to buy or sell an underlying asset at a predetermined price within a specified time frame. Options can be used for various investment strategies, including hedging and speculation.
7. Futures: DEGIRO offers trading in futures contracts. Futures are standardized agreements to buy or sell an asset at a predetermined price and date in the future. They are commonly used for commodities, currencies, and financial instruments.
8. Crypto Trackers: DEGIRO provides the ability to invest indirectly in cryptocurrencies through crypto trackers, such as Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs). These trackers aim to replicate the performance of cryptocurrencies or blockchain-related indices.
9. Commodities: DEGIRO allows trading in various commodities, including agricultural products (grain, soy, coffee, etc.), minerals (salt, sand), livestock (cattle, pigs), fossil fuels (oil, coal, natural gas), forest products (wood, pulp), metals (copper, aluminum), and precious metals (gold, platinum, palladium).
10. Leveraged Products and Structured Products: DEGIRO offers access to leveraged products and structured products, which can provide amplified exposure to underlying assets or offer specific risk-reward profiles based on predetermined conditions.
Account Types
DEGIRO offers two main types of accounts: the regular DEGIRO investment account and the DEGIRO Pension account. Here's a brief description of each:
1. Regular DEGIRO Investment Account:
· Allows trading of various investment products such as stocks, bonds, trackers, and funds.
· Offers the ability to go short, meaning you can profit from falling prices.
· Provides the option to debit money from the account for trading purposes.
· Supports trading in leverage products, which can potentially amplify gains or losses.
· Offers free real-time quotes for better market visibility.
· Allows derivatives trading for more advanced investment strategies.
2. DEGIRO Pension Account:
· Designed specifically for pension savings.
· Similar to a regular DEGIRO investment account but with some differences.
· Only the Custody Profile is available, which means the account operates on a custody basis to enhance asset protection.
· Features a different fee schedule compared to regular accounts.
· Does not permit investment in speculative products with an 'extra' speculative character.
· Stocks, bonds, trackers, and funds can be traded within the pension account.
· Going short, trading leverage products, and derivatives trading are not available.
Commissions and Fees
Here is an overview of the commissions and fees charged by DEGIRO:
1. Commissions for Trading:
- Stocks: DEGIRO charges commission fees for stock trading. The specific commission rates may vary depending on the stock exchange and the type of shares being traded. For example, the commission for NL & BE shares is €2 + €1 handling fee, while for European equities, it is €3.90 + €1 handling fee. US equities have a commission rate of €1 + €1 handling fee.
- Futures: DEGIRO charges a commission of €0.75 per contract for trading futures.
- Other Products: DEGIRO's commission rates for other products, such as options, warrants, and leveraged products, may vary. It is advisable to refer to DEGIRO's official website or platform for detailed information regarding the commission fees for specific products.
2. Handling Fee: DEGIRO applies a handling fee of €1 for most products, except for certain specific products, such as BNP & SGC OTC leveraged products & warrants, Tradegate (Stocks), and Options & Futures (excluding OMX Nordics).
3. Other Costs:
- Real-time Price Information: DEGIRO provides real-time price information for AMS (Amsterdam) stock exchange at no additional cost.
- Custody Fee: DEGIRO does not charge a custody fee for holding securities in your account.
- Inactivity Fees: DEGIRO does not impose any inactivity fees.
- Deposits: DEGIRO does not charge fees for deposits made into your account.
- Recordings: DEGIRO does not charge fees for record-keeping.
- Currency Handling: DEGIRO offers the option to hold cash positions in foreign currencies. For manual currency conversion, DEGIRO charges a conversion fee of €10.00 plus 0.25% of the converted amount. AutoFX is the default setting for automatic currency conversion, but users have the option to switch to manual currency conversion with associated costs and exchange fees.
Deposits and Withdrawals
DEGIRO allows deposits and withdrawals through two methods: iDEAL and manual transfer.
iDEAL :iDEAL is a popular online payment system in the Netherlands. It enables users to make secure and instant payments directly from their bank accounts. DEGIRO accepts deposits via iDEAL, which provides a convenient and efficient way for users to fund their accounts.
MANUAL TRANSFERS: Additionally, DEGIRO also allows manual transfers for deposits and withdrawals. This typically involves transferring funds directly from a bank account to the DEGIRO account. Manual transfers may require users to provide specific account details, such as a reference number or account number, to ensure the funds are correctly allocated.
It's worth noting that the minimum initial deposit requirement at DEGIRO is stated to be only €0.01. This means that users can start investing with a very small amount. However, it's important to consider any subsequent deposit or trading requirements that may be applicable.
Pros and Cons
Trading Platform
DEGIRO offers two trading platforms: WebTrader and mobile applications. Here's a brief description of each platform:
1. WebTrader: DEGIRO's WebTrader is a browser-based platform that allows users to trade and manage their investments directly from their web browser. It offers a user-friendly interface with essential trading functionalities. Traders can access real-time market data, place orders, monitor their portfolio, and analyze charts and market trends. The platform provides a range of order types, including limit orders, stop orders, and market orders. While it may not have as many advanced features as specialized trading platforms, WebTrader offers a streamlined trading experience.
2. Mobile Applications: DEGIRO provides mobile applications for iOS and Android devices, enabling traders to access their accounts and trade on the go. The mobile apps offer similar functionality to the WebTrader platform, allowing users to monitor their portfolio, place trades, and access real-time market data. The mobile apps are designed to provide a seamless and convenient trading experience for traders who prefer using their smartphones or tablets.
It's worth noting that while DEGIRO's trading platforms offer essential trading capabilities, they may not provide the same extensive features and tools as dedicated trading platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5). Traders who require advanced charting, technical indicators, or automated trading strategies may find it beneficial to use third-party platforms in conjunction with DEGIRO's services.
Pros and Cons
Customer Support
DEGIRO provides customer support services to assist users with their inquiries, account-related matters, and trading-related issues. Here is an overview of DEGIRO's customer support:
1. Contact Channels: Users can reach DEGIRO's customer support through the following channels:
· Telephone: DEGIRO's customer support can be contacted by phone. The local rate telephone number is 020 535 34 96, available between 08:00 and 22:00.
· International Telephone: For English support, users can call +31 20 26 13 072 between 17:30 and 22:00.
· Email: Users can send inquiries or requests to DEGIRO's customer support via email at customers@degiro.nl.
2. Social Media: DEGIRO maintains a presence on various social media platforms, including Twitter, Facebook, Instagram, YouTube, and LinkedIn. Users can follow DEGIRO on these platforms to stay updated on news, announcements, and educational content.
3. Office Address: DEGIRO's physical office address is as follows: Rembrandt Tower - 9th floor 1096 HA Amsterdam The Netherlands
4. Support Availability: DEGIRO's customer support is typically available during business hours. Telephone support is available from 08:00 to 22:00, and English support is available between 17:30 and 22:00. Users can expect assistance during these times.
Conclusion:
In conclusion, DEGIRO is a reputable online broker that offers a wide range of market instruments and account types to cater to the diverse needs of investors. It provides low-cost trading, transparent commission fees, and access to various financial markets globally. However, DEGIRO has some limitations, including limited research and educational resources, and its trading platforms may not offer as many advanced features as specialized platforms. Additionally, customer support availability is limited to specific hours. Despite these disadvantages, DEGIRO remains a popular choice for investors looking for cost-effective trading and a wide selection of investment options.
FAQs
Q: What market instruments can I trade through DEGIRO？
A: DEGIRO offers a wide range of market instruments, including shares, bonds, currencies, mutual funds, ETFs, options, futures, crypto trackers, commodities, and leveraged products.
Q: What are the different types of accounts offered by DEGIRO？
A: DEGIRO offers Basic (Custody) Account, Custody Plus Account, Active (Margin) Account, and IRA Account (for US residents).
Q: What are the pros and cons of using DEGIRO？
A: DEGIRO has several advantages, such as low-cost trading, access to a wide range of market instruments, and transparent commission structure. However, it's important to consider factors like limited research and educational resources.
Q: How much are the commission fees for trading with DEGIRO？
A: The commission fees for trading with DEGIRO vary depending on the product and stock exchange. For example, stock commissions range from €1 to €3.90, and futures have a commission of €0.75 per contract.
Q: What payment methods does DEGIRO accept？
A: DEGIRO accepts payment methods such as bank transfers, iDEAL (Netherlands), SEPA transfers (EU), and credit/debit cards (depending on location and card providers).
Q: What trading platforms does DEGIRO offer？
A: DEGIRO offers a browser-based trading platform called WebTrader and mobile applications for iOS and Android devices.
Q: How can I contact DEGIRO's customer support？
A: You can contact DEGIRO's customer support through telephone, email, or their social media channels. The telephone support is available during specific hours, and email inquiries can be sent to customers@degiro.nl.
Q: Does DEGIRO charge custody fees？
A: DEGIRO does not charge custody fees for holding securities in your account.
Q: What are the account requirements to start investing with DEGIRO？
A: DEGIRO has a low minimum initial deposit requirement of €0.01, allowing users to start investing with a small amount. However, subsequent deposit or trading requirements may apply.
Q: Does DEGIRO provide real-time price information？
A: DEGIRO offers free real-time price information for the Amsterdam stock exchange (AMS).
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