Degiro Review 2020

Degiro is a Europe based retail stockbroker that operates across the world. It is renowned to provide remarkably low-cost services being a discount broker. The authorities that regulate DeGiro’s financial services include the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB). The financial firm is registered in Amsterdam at the Chamber of Commerce and Industry.

Degiro aims to offer custom-made and affordable financial services to worldwide investors. The core idea behind this is to perfectly merge technology with financial knowledge. Degiro puts emphasis on the widespread global level access which covers Australia, Japan, Hong Kong, and many other counties apart from Europe and the US.

Background

Initially, the firm was established as a wholesale broker in 2008. DeGiro came up with its online brokerage services in 2013. It was based out of the Netherlands and as part of the expansion, it has covered 18 European countries. DeGiro claims to differ from its peers to quite an extent largely because they embraced change and developed their offering timely.

Growth

The four major aspects of its growth are:

  • Global Access:

DeGiro connects European investors with the global markets which are not very frequent practice. The global access gives an opportunity to the clients to fetch profits from diversification of assets.

  • In-house Development:

DeGiro has its game on point when it comes to its trading tools. The brokerage company has been innovative with its tools while developing it. All the platforms under DeGiro are built in-house and tailored according to the needs of a varied range of clients.

  • Reduced costs:

Degiro offers its financial services at remarkably low prices. This aspect lures most of the traders as commission fees play a notable part while getting on a brokerage platform. This has also helped the firm to become one of the largest retail stockbrokers in Europe. Moreover, DeGiro manages to provide its retail clients the same low rates and opportunities that used to only be available to professional clients. Also, the platform has a drop down of cost calculator, which lets you know The costs that you need to pay when trading:

  • Regulated brokerage service:

As mentioned above, DeGiro is monitored by AFM and DNB. The firm holds a license pursuant to article 2:96 of the Act on Financial Supervision in the Netherlands being an investment firm.

The timeline of the platform has been this:

  • 2013: Launch of DeGiro
  • 2014: Expansion to 9 countries
  • 2015: DeGiro enters North Europe & Italy
  • 2016: Largest broker in the Netherlands
  • 2017: More than 200,000 clients
  • 2018: More than 350,000 clients and 40+ awards

Accounts:

different options of accounts including Custody, Basic, Active, Trader, and Day Trader. In custody type account, one gets to trade Shares, Bonds, Investment Funds, and Trackers (ETFs) but can’t get into Leveraged Products and Warrants. While custody account holders can get Free real-time prices on Euronext exchanges, they can’t go short.

Basic account holders, on the other hand, can trade in Shares, Bonds, Investment Funds, and Trackers (ETFs) along with Leveraged Products and Warrants. Basic account also enables free real-time prices on Euronext exchanges with Free dividend and coupon processing.

Active Trader and Day Trader types of accounts offer all the types of trading facility, however, their limits vary when it comes to buying on margin.

Moreover, DeGiro has a rapid and simple process for account opening. The process will be fully digital and it requires no minimum deposit.

Placing Orders

There are several types of orders one can choose from. However, all of them are not available for every tradable instrument. Once after you complete the order placing process, you will receive an email regarding an order confirmation. The platform doesn’t provide the same via text message. It lacks price alert function too.

The types of orders include:

  • Limit
  • Market
  • Stop loss
  • Stop limit
  • Trailing stop
  • Day
  • Good-till-cancelled (GTC)

Products and Markets:

With DeGiro, you can possess quite a diversified portfolio as it has a wide range of options including stocks, options, and futures, ETFs and crypto. However, the platform doesn’t offer trading services for forex and CFDs.

Stocks

DeGiro enables you to experience the biggest international markets as well as the smaller stock exchanges of Europe. A user can get access to 32 stock exchanges on the platform. Penny stocks are also there as a trading option. DeGiro’s stock selection is between that of Interactive Brokers and Saxo Bank.

ETFs

DEGIRO gives you access to over 5,000 ETFs. ETFs selections are also between that of Interactive Brokers and Saxo Bank.

Funds

The selection of funds at DeGiro is average as compared to Interactive Brokers. This is because DeGiro provides a bit narrow selection of funds.

Bonds

The Bond game at DeGiro is not at up to the mark as it shows a ‘so so’ picture here. It compares poorly to IB or Saxo Bank in this respect.

Options

DeGiro gives you 13 options markets, and this is where it looks a bit competitive as compared to Saxo.

Cryptos

DeGiro allows you to trade on the Swedish stock exchange in Bitcoin and Ethereum through ETN instruments.

Fees

DeGiro has a luring enough fee structure for traders as it charges lower fees than the majority of its peers. To the extent that, a few ETFs can be traded for free of cost once in a month.

However, Asian and smaller European stock exchanges have to face higher trading fees. Higher trading fees take place each time you trade. It can be in the form of commissions, spreads, financing rates, and conversion fees. A few more fees include withdrawal fees or inactivity fees. Also, on this platform, the stock, ETF and warrant fees are the same.

Features:

  • Charting

Traders who do not possess any technical prowess can excel here. DeGiro gives you a pretty basic, yet enough charting tool. It is user-friendly and shows more than 20 technical indicators. One can save these charts too.

  • Newsfeed

Users can find the newsfeed on both the platform the web and the mobile app. It is a basic news panel with short but useful market news.

  • Fast trading

It has to be quick when it comes to trading. This platform is speedy enough and it responds immediately. You will find a QuickOrder button at the top of every page where you can enter your order quickly and easily.

  • Real-time streaming prices

Here, major European markets and US exchanges will be available for trading with real-time streaming prices.

  • Bid / ask spread in the order book

DeGiro also lets you see your orders up to 5 levels on a platform called Euronext. The tool helps to view the depth of the order book.

  • Favorites list

Here, you can sort your favorite products by creating a list. The platform provides a tool named WebTrader, where one can easily view the favorite products.

Customer Service

DeGiro provides customer services in many languages with reliable phone support. However, they are not accessible 24/7 and it also doesn’t provide aby chat support.

Meanwhile, their phone support is up to the mark and it gives Relevant responses when needed. With that, they are also available through e-mail and it responds to the query email within 2 days. They respond quickly but are available from 7 am to 9 pm on weekdays only.

Learning

Here, DeGiro can make major improvements moves. The trading platform teaches the tools in Dutch and English only. Also, the set of tools is quite limited here.

Investor’s academy

Investor’s academy aims to offer knowledge regarding investment. It gives an insight regarding how investing works, which products you can invest in, and what strategies you can use. This section of education holds a total of 10 lessons.

Blog

Here, the blog elaborates on the most traded stocks in the UK along with the most traded sectors. After the first two trading weeks of each month, DeGiro reports the top traded stocks via their platform for each country they are active in. It also shows winners and losers during this time period.

A couple of more ways to learn trading here are platform tutorial videos and general educational videos. These videos are generally about basic topics like asset classes and order terms. It also gives an insight regarding the trading platform, for example on how you can buy stocks via the DeGiro web platform. However, they do not provide services like a demo account, webinars and educational articles.

Advantages

  • Secured

Here, when a user opens an account with the platform, he or she gets investor protection for up to €20,000. No just this, DeGiro holds a Two-step (safer) login process ro ensure safety.

  • Low fees

The trading platform offers services at significantly low rates. In most of the cases it gives you best on the market.

  • Simple platform

No special technical prowess is required to use this platform as an investor. The easy interface opens the door of wide range of users for DeGiro.

  • Fully digital

As its account opening procedure is fully digital, it comes across as a quick and seamless platform.

  • Fast

At DeGiro, you will find quite a smooth process regarding account opening and order placing. This makes it rapid and hassle free platform for trading. Also, No minimum deposit and user-friendly outlook are a major plus.

Disadvantages

  • Limited research and education

DeGiro fails to impress when it comes to its learning and education part. Limited language options (only English and Dutch) and a lack of demo account disappoints a bit. The trading platform also doesn’t offer any webinars or educational articles.

  • Credit/Debit card not available

For deposits and withdrawals, a user cannot get any credit/debit card here. This makes the platform less feasible.

  • No price alerts, No Forex, No CFD

In a nutshell…

DeGiro’s portfolio and fee reports are well organized. They are transparent, and you can easily see what products you own and the fees you paid for the transactions. However, you can’t get an access to Forex and CFD markets, while also cannot use debit or credit cards.

Degiro

8.3

SUPPORT

9.1/10

REPUTATION

8.5/10

SECURITY

8.1/10

PAYMENT OPTIONS

7.0/10

USER EXPERIENCE

8.7/10

Pros

  • Secured
  • Low fees
  • Simple platform
  • Fully digital
  • Fast

Cons

  • Limited research and education
  • Credit/Debit card not available
  • No price alerts, No Forex, No CFD