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DEGIRO Review: Online Stock Trading Platform With Low Fees

Degiro is an online Stockbroker for the UK market which allows you to invest in world stocks, ETFs, Bonds & More. Here's our review.
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If you’re looking to find an online investment platform that allows you to buy and sell stocks at the click of a button, DEGIRO is well worth considering.

The platform allows you to purchase thousands of equities via your desktop or mobile device, and you’ll be treated to some of the lowest fees in the industry. In fact, purchasing shares that are listed on the UK stock markets will set you back just £1.75, plus 0.014%.

With that being said, you should never choose an investment platform purely based on fees. On the contrary, you need to make a range of other considerations, such as regulation, user-friendliness, customer support, and more.

As such, if you’re thinking about opening an account with DEGIRO, be sure to read our comprehensive review. We cover the ins and outs of what DEGIRO offers, subsequently allowing you to make an informed decision as to whether or not the broker is right your long-term investment goals.

Risk Warning: Investing can be rewarding but it is not without risk. You can lose (a part of) your deposit.

Visit Degiro

What is DEGIRO?

Launched as recently as 2013, DEGIRO is an online investment platform that allows you to buy and sell a range of financial instruments.

At the forefront of this is its stocks and shares offering. This includes stock markets in the UK and the US, as well as less liquid markets in Asia and Oceania. On top of its stocks and shares offering, DEGIRO also hosts a number of ETFs, futures, bonds, and options.

Although its pricing structure is somewhat confusing at first glance – not least because you’ll be charged based on the market you wish to access, DEGIRO is known for its low fees. For example, buying UK-listed shares will cost you just £1.75 per trade, plus 0.014% in commission.

Crucially, this is capped at £5 per order, so you won’t be penalized for investing larger amounts. DEGIRO is also competitively priced in other areas of the global stock markets. For example, buying US-listed equities will cost just €0.50 plus $0.004 per share.

The Degiro Homepage
The Degiro Homepage

It is important to note that DEGIRO is an execution-only broker, meaning that you will be required to trade on a DIY basis. As such, the platform does not offer advisory services of any sort. Nevertheless, if you are an experienced investor that seeks to utilize advanced charting tools, DEGIRO has you covered.

You’ll have access to 23 technical indicators, as well as a fully customized trading screen. DEGIRO is also a notable option for those of you that wish to trade on the move. With a fully-fledged mobile application, buying and selling shares has never been easier.

Finally – and as well cover in more detail further down, DEGIRO is authorized and licensed by the Netherlands Authority for Financial Markets (AFM).

Access global exchanges anytime, anywhere, and on any device
Access global exchanges anytime, anywhere, and on any device

What Investments can I Make at DEGIRO?

DEGIRO has a highly comprehensive listing of assets on its platform. Notably, not only will you have access to heaps of UK-based assets, but DEGIRO is great for gaining exposure to global marketplaces.

Below we have listed the main asset classes that the platform supports.

Stocks and Shares

At the forefront of DEGIRO’s product range is that of its stocks and shares department.

This, of course, includes the London Stock Exchange (LSE). However, UK investors will also be able to access non-UK stock markets. In fact, you’ll find more than 30 individual exchanges hosted. This includes both the New York Stock Exchange (NYSE) and NASDAQ in the US, as well as the Tokyo Stock Exchange (TSE).

Invest in Worldwide stocks & Shares
Invest in Worldwide stocks & Shares

Here’s a full breakdown of the stock exchanges that DEGIRO provides access to.

European Exchanges

  • Euronext Amsterdam
  • Euronext Brussel
  • Euronext Paris
  • Xetra
  • Börse Frankfurt
  • London Stock Exchange
  • Vienna Stock Exchange
  • SIX Swiss Exchange
  • OMX Copenhagen
  • Bolsa de Madrid
  • OMX Helsinki
  • Athens Stock Exchange
  • Budapest Stock Exchange
  • Euronext Dublin
  • Borsa Italiana S.p.A.
  • Oslo Stock Exchange
  • Warsaw Stock Exchange
  • Euronext Lisbon
  • OMX Stockholm
  • Prague Stock Exchange
  • Istanbul Stock Exchange

North American Exchanges

  • NASDAQ
  • NYSE
  • Currenex
  • Toronto Stock Exchange
  • Toronto Ventures Exchange

Exchanges in Asia and Oceania

  • Australian Securities Exchange
  • Hong Kong Stock Exchange
  • Tokyo Stock Exchange
  • Singapore Exchange

Exchange-Traded Funds (ETFs)

If you’re looking to speculate on ETFs, DEGIRO offers more than 200 products across multiple marketplaces. This includes ETFs listed on exchanges in Europe, Hong Kong, and Singapore.

Bonds

DEGIRO also allows you to purchase bonds. This includes government bonds from major economies, as well as a number of corporate bonds.

Options and Futures

If you’ve got an appetite for more sophisticated financial instruments, you’ll be pleased to know that DEGIRO also lists futures and options. This consists of instruments from multiple global marketplaces, including the CBOE and CME.

Degiro partners
Degiro is partnered with leading companies around the world

DEGIRO Fees

As we noted earlier in our review, one of the most attractive metrics of using a broker like DEGIRO is that it charges low fees. With that being said, the fee structure can take time to get to grips with, as the fees will vary depending on what you plan to invest in.

If you’re looking to purchase stocks and shares from the London Stock Exchange, DEGIRO charges both a flat and variable fee. This will cost you £1.75 per trade, plus 0.014% of the trade size. This is hugely competitive – especially if trading large volumes. Moreover, the maximum fee for UK-listed shares is just £5.

Degiro fees comparison
Degiro fees comparison

Things start to get a bit more complicated when assessing non-UK markets, as the fees will be charged in a currency other than GBP. For example, DEGIRO basis its fees on two currencies when accessing US-listed stocks. This amounts to €0.50 + $0.004 per share.

On the flip side, DEGIRO does offer a number of real-world examples of how much you will pay when purchasing stocks.

For example:

  • Purchasing £1,000 in Tesco shares would cost just £1.97, and £5,000 in Vodafone shares at £2.85. In comparison to the likes of Hargreaves Lansdown and HSBC, this is significantly cheaper. In fact, the aforementioned platforms will charge £11.95 and £10.50 for the same trades, respectively.
  • Based on a share price of $190, purchasing £2,000 worth of Apple stocks would set you back just £0.49, and £10,000 worth of Amazon stocks at $1,800 per share would cost just £0.47. Interestingly – even with the complexities of being charged in foreign currencies, this works out even cheaper than buying UK shares at the platform.

Outside of the stocks and shares department, fees will vary quite considerably at DEGIRO. For example, while investing £1,000 into the UK Small Cap Tracker ETF would cost you £2.16 in fees, it would cost you nothing to invest £10,000 into the FTSE 100 Tracker. Similarly, futures on the DAX will cost £0.80 per contract, while the S&P 500 E-mini amounts to £0.58 per contract.

Degiro Deposits & Withdrawals

One of the major pain-points of using DEGIRO is it is extremely limited in the payments department. In fact, the only method supporting deposits and withdrawals is that of a bank transfer. As such, you won’t be able to fund your account with a debit or credit card, nor can you use an e-wallet like PayPal or Skrill.

Nevertheless, you will be required to transfer funds from your UK bank account, to the UK bank account of DEGIRO. The details will be provided to you when you open an account. You will also need to include your unique customer number as a reference.

Take note, if you attempt to transfer funds from an account that is not registered in your name, DEGIRO will simply reject the payment and transfer the money back. This will also be the case if using a third-party money transfer company like TransferWise.

Once you do transfer funds over to DEGIRO, it usually takes between 2-3 days for the deposit to be credited. This can be frustrating if you want to fund your account instantly and place a trade straightaway.

The good news is that DEGIRO does not charge any fees to deposit or withdraw. Moreover, the minimum deposit amount is just £1, so the platform is ideal if you’re just starting out in the world of investing.

DEGIRO Trading Platform

Although the DEGIRO trading platform is somewhat simplistic, navigating from asset to asset is a straightforward process. Moreover, setting up your trading parametres is also simple, so the platform is ideal for both newbie and seasoned investors.

You will have the option of buying and selling assets via the main browser-based platform, or via the mobile app. As such, there is no desktop software option.

Trading platform
Enter your order quickly and easily with the QuickOrder button

In terms of the features offered by the DEGIRO trading platform, you’ll have access to streaming quotes in real-time, as well as extensive order capabilities. Regarding the latter, this includes day orders, good till canceled orders, limit hit orders, limit orders, and market orders. Take note, these order types won’t be available on all asset classes.

For those of you that wish to utilize advanced charting tools, DEGIRO offers 23 technical indicators. This will allow you to perform an in-depth pricing analysis of your chosen asset. With that said, 23 indicators is much lighter in comparison to other platforms in the market.

Orders
Place your orders either by the number of stocks or by the value of the order.

When it comes to the capabilities of the DEGIRO mobile app, the vast majority of trading features mirror that of the main desktop platform. The DEGIRO app – which is available to download free of charge at both the Google Play and Apple Store, is highly rated in the public domain.

On top of excellent user ratings, DEGIRO has won a number of awards for its trading app. This includes the Financial Times & Investors Chronicle Best Mobile Share Dealing (2019), and the Investment Trends Best Mobile Trading App (2018).

DEGIRO Regulations & Protections

One of the most important metrics that you need to consider prior to joining a new broker is whether or not your money will be safe. While your trading endeavors are your own responsibility, you still need to ensure that your funds are not at risk from a potential broker collapse.

With that being said, DEGIRO clients are accustomed to the following safeguards.

Regulation

DEGIRO is registered with the UK’s FCA, which is a minimum requirement for any broker that wishes to service UK clients. As the company is headquartered in the Netherlands, it is also supervised by the Dutch Authority for Financial Markets (AFM). Furthermore, DEGIRO is in receipt of prudential supervision by the Dutch Central Bank (DNB).

Investor Protections

Those based in the UK will still benefit from the protections of the Dutch Investor Protection Scheme. This provides a safety net on the first €20,000 (about £17,000) in the event that DEGIRO ran into financial problems. This is much less than the FCA’s Financial Services Protection Scheme of £50,000.

As such, you need to assess whether or not you feel comfortable depositing large amounts at the platform, not least because anything beyond €20,000 likely wouldn’t be protected by the scheme.

Segregation

Although DEGIRO clients are only protected up to the first €20,000, the broker does use segregated accounts to separate your funds from its own. It does so by utilizing SPVs( Special Purpose Vehicles), meaning that the funds cannot be used for its own commercial activities. As a result, were DEGIRO to go bankrupt, your funds should be protected.

Lending out Your Securities

DEGIRO clearly states that as a client of its platform, you “give DEGIRO the right to lend out your securities. This is done to be able to facilitate going short; ‘Debit Securities’.”

This in itself represents a slight risk.

For those unaware, brokers often engage in securities lending as a means to facilitate short-selling. This is where a trader wishes to speculate on an asset losing value in the open marketplace. In order to achieve this, investors need to borrow shares, and then buy the shares back at a later date.

However, DEGIRO notes that it manages the risks of securities lending by collecting a security from the borrowing party.

DEGIRO Customer Support

If you need to speak with a member of the DEGIRO customer service team, you’ve got two options.

  • You can call the team directly on 020 3695 7834.
  • Alternatively, you can send an email to clients@DEGIRO.co.uk.
  • The DEGIRO support team works Monday to Friday, between the hours of 7 am and 9 pm.

How to get Started With DEGIRO? Step-by-Step Guide

If you’ve read our DEGIRO review up to this point and you like what you see, we are now going to give you a brief overview of how you can get started today.

Step 1: Visit the DEGIRO Website

As an online-only broker, you’ll first need to head over to the DEGIRO homepage. Once there, click on the ‘OPEN AN ACCOUNT’ button.

Open an Account
Easy account signup

Step 2: Open an Account

You’ll now need to provide some personal information so that DEGIRO knows who you are. This will include the following:

  • Full Name
  • Home Address
  • Date of Birth
  • Email Address
  • Telephone Number
  • National Insurance Number

If you’re based outside of the UK and thus – don’t have a national insurance number, then you will need to provide DEGIRO your tax identification number. While overseas clients are eligible, you still need to have access to a UK bank account.

Step 3: Activate Your Account

Unlike other brokers operating in the space – which typically ask you to upload a copy of your passport or driver’s license in order to activate your account, DEGIRO requires you to complete a bank transfer. This is to ensure that your name matches the name attached to your bank account.

As such, you’ll need to send funds to DEGIRO’s UK bank account. The good news is that you can deposit just £1 to do this, meaning that you can first activate your account and then deposit a larger amount at a later date.

Don’t forget, it’s crucial that the funds only come from a bank account that is registered in your name, or DEGIRO will reject the transfer.

Step 4: Start Trading

Once you have transferred the funds, it will likely take DEGIRO 2-3 working days before the deposit is credited. As soon as it is, your account will be activated and you can start trading.

DEGIRO Review: The Verdict?

In summary, if you’re looking for a UK broker that offers super-low fees, DEGIRO is well worth considering. With UK stocks costing just £1.75 +0.014% (capped at £5), and US stocks at just €0.50 + $0.004 per share (not capped), this is considerably lower than many of the platform’s main market rivals.

We also like the fact that DEGIRO gives you access to dozens of global marketplaces. This includes the ability to purchase stocks, ETFs, bonds, and futures from stock exchanges outside of the UK.

While the trading platform itself is somewhat simplistic – alongside just 23 technical indicators, DEGIRO is best suited for those of you that wish to engage in a long-term investment strategy without being penalized in fees.

Visit Degiro

Risk Warning: Investing can be rewarding but it is not without risk. You can lose (a part of) your deposit.

Degiro

8.8

Ease of Use

9.0/10

Fees

9.0/10

Reputation

9.0/10

Customer Support

9.0/10

Design

8.0/10

Pros

  • Some of the Lowest Fees on the Market
  • Simple & Easy to Use
  • Web & Mobile Trading
  • Good Asset Coverage
  • Well Regulated & Insured

Cons

  • Limited Educational Tools
  • No Credit / Debit Card Payments
Kane Pepi

Kane holds a Bachelor's Degree in Accounting and Finance, a Master's Degree in Financial Investigation and he is currently engaged in a Doctorate - researching financial crime in the virtual economy. With a keen passion for research, he currently writes for a variety of publications within the Financial and Cryptocurrency industries. kane@moneycheck.com

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