The Verdict
Degiro is one of the largest brokers in Europe. It offers low cost trading that works out particularly economical if you're trading EFTs and UK stocks. It's a slightly unusual way of charging in that there are 'handling fees' and commission to pay with each transaction which can make comparison with other platforms slightly tricky but our analysis finds that it's good value in many instances (see extended 'Fees' section below for analysis). There's a potentially hefty price to pay if you decide to transfer out of Degiro, however, which it's advisable to know about in advance.
On choice, Degiro offer a good range of ETFs and stocks from 50 global exchanges across 30 countries, as well as bonds, funds, investment trusts, commodities and - for more experienced traders - derivatives, trading with margin, and short-selling.
The main issue for many investors will be the lack of an ISA. There's no personal pension either so you can only invest through a general investment account, which means you can't take advantage of those tax benefits of an
Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAISA
or
A self-invested personal pension (SIPP) is a type of private pension that allows you to control the specific investments that make up your pension fundSIPP.
Read More
Pros
- Low trading costs for UK stocks, US stocks, ETFs and funds
- No custody fees
- Low FX fees
- Wide range of assets and instruments
- Free account upgrade available for those wanting to trade with leverage, short sell or trade derivatives
- Excellent research and educational features
Cons
- Cannot invest through an ISA
- Only a general investment account
- Costly to transfer your portfolio out of Degiro (€ 20.00 per position)
- No ready-made portfolios
- Not covered by the FSCS (although protection from German deposit guarantee scheme)
- No joint or corporate accounts available
Trading Platform
Degiro's trading platform may be too overwhelming for absolute beginners looking for something very basic. (Try Dodl or Freetrade if that's you.) But it's not totally impenetrable so it's suitable for relatively inexperienced traders and, if you are experienced enough and qualify for an Active or Trader account, you'll find a decent range of research and trade execution tools. Again, at the other end of the spectrum, if you're a highly advanced trader, you might find this isn't sophisticated enough for you. (Try Saxo, IG or Interactive Brokers instead).
You'll have access to a broad range of order types including: Day order, Good till cancelled, Limit order, Market order, Stop loss, Stop limit, and Trailing stop.
Pros
- Available on web and mobile app
- Well-designed user interface provides top-tier user experience
- Accessible for inexperienced investors/traders
- Suitable for more experienced investors/traders too
- Good range of trade execution and risk management tools
Cons
- For advanced traders, the platform will be too simple
- May be too complicated for absolute beginners
Account Opening
The account opening process was a standard process although it did include some quite stringent identity verification elements - scanning a passport for UK citizens and a face scan to check you are the same person as your ID says you are, plus National Insurance number, checking my geographical location and 2FA. This may be to comply with European as well as UK regulations given that Degiro is regulated by authorities in Germany and the Netherlands.
Verification and entry through to the platform weren't immediate after this step and took around an hour. Degiro says this can take up to a couple of days to complete in extreme circumstances.
I was allocated a basic account, which I could apply to have upgraded to an account that allowed me access to the complex instruments. There is a knowledge test to pass however, and your account will need to be adequately funded for access to be granted.
Transferring a general investment account from elsewhere is free to do. Beware the costs of transferring out of Degiro though! It costs €20.00 per position + external costs which is a bit cheeky and could end up costing you dearly if you have many positions to transfer and don't want to sell them.
Pros
- Fully digital process
- Took just 10 minutes to register for an account
Cons
- To transfer out of Degiro costs €20.00 per position + external costs
- Full verification of identity can take a couple of days
Research
Degiro offers an excellent selection of research features and tools - certainly enough to satisfy most investors. It's not as comprehensive as Saxo, IG, or Interactive Brokers which are tailored to the needs of more advanced traders. But it has an advantage over many investment platforms, however, because it provides analyst ratings and stock price expectations within the platform/app.
Pros
- Stock and fund screener
- View past performance charts over 1M, 3M, 6M, 1Y, 3Y, and 5Y
- Key metrics and price information
- Dividends and earnings data
- Company information and related news stories
- Analyst consensus, projections, and stock price expectation
- Live pricing
Cons
- Not as well-suited to advanced traders as Saxo, Interactive Brokers, and IG
Safety
Degiro is a European firm overseen by regulators in Germany and the Netherlands. Because of this, it is deemed to be authorised and regulated by the UK Financial Conduct Authority, although that does mean that UK consumer protections are different from the ones offered when trading with Degiro. You won't be covered by the UK's Financial Services Compensation Scheme (FSCS), although you will be covered by up to €100,000 under the German Deposit Guarantee Scheme should Degiro cease trading.
Degiro also adheres to rules which mean they must use a separate legal entity (SPV) to segregate your assets and hold them separately from Degiro's assets. The sole task of this entity is to administer and safeguard your investments.
Degiro have had some issues with the Dutch regulator and were fined €300,000 in 2020 because the regulator found that, for many years, private investors were exposed to more risk than they were made aware of.
Pros
- Regulated by Dutch and German regulators
- Deemed authorised and regulated by the UK FCA
- Up to €100,000 protection under the German Deposit Guarantee Scheme
- Adheres to rules on safeguarding and separation of assets
- Biometric login available on mobile app
Cons
- Doesn't fall under protection of the UK Financial Services Compensation Scheme
- Has had some issues with the Dutch regulator in the past
Education
Degiro has an Investment Acadeny where, for free, you can learn how investing works, which products you can invest in, and what strategies you can use. It's very comprehensive and a great place to expand your knowledge.
Pros
- Knowledge Centre on the website
- Investment Academy covers all the basics of investing
- Lessons include articles and videos
- Blog
- Suitable for beginners
- Explanations of different investing strategies
- Case study videos of real investors' experiences
Customer Service
Degiro customer services can be contacted either by email, or by phone. The phoneline is open on weekdays between 7am - 9pm.
Pros
- UK phoneline available within office hours 5 days per week
- Email enquiries accepted
- Website 'Help' section with answers to FAQs
Cons
- No weekend phone support
- No chatbot offered on the website
- My email enquiry took several days to be answered
Social Trading
Degiro has no social trading features at this time.
Read More
Cons
- No community forum
- No copy-trading or other social trading features
Corporate Actions
A corporate action is a change in a company that affects its shareholders. Some corporate actions give investors a chance to participate and have a say. If you hold a stock which is taking part in one of these corporate actions, Degiro will send you a notification and instructions on how to take part. It's not always free to do so, though, so check on costs.
Pros
- Supports shareholders in taking part in voluntary corporate actions such as votes on proposed changes
- Degiro automatically notifies shareholders of corporate actions
- Dividends are usually paid one working day after the pay date
Cons
- €100.00 per position to register for a shareholder meeting
More info
Fact
Checked
Disclosure
Share
Verdict
Not available
Available