Five previous employees of Binck Bank established a brokerage in the Netherlands in 2013. This brokerage will come to be known as DEGIRO. Today, DEGIRO boasts of growing to command a customer base of over 400,000 clients spread over 18 countries.
DEGIRO online broker has built a reputation for low fees and charges. DEGIRO offers shares trading at a significantly lower price than the competition. It beeing £1.75 + 0.014% per trade, with a maximum charge of £5.00 Is a bargain. However, DEGIRO lags competitors like ActivTrades in fundamental research and education. The company’s user-friendly trading platforms allow its clients to trade across different devices. Join me as I lay out the full 2020 review of DEGIRO stock broker.
DEGIRO has several account types. These accounts include Basic, Custody, Trader, Active, and Day Trader.
The basis is the default account and most versatile. You get access to every feature except leverage. There are no extra fees or limitations in comparison to other accounts. Active, Day Trader, and Trader accounts are quite similar to the Basic account except that you have access to leverage. The leverage limitations vary from account to account.
DEGIRO allows you to lend your shares to other investors. When an investor shorts, he or she is selling shares that they do not own. This is where lending comes to play. DEGIRO will lend your shares to the investor in need.
DEGIRO U.K will guarantee the lending at the collateral of 104% of the value of the share. The short seller will have to meet the margin requirements before the trade can get a green light.
Some investors do not feel comfortable with share lending. Such investors can take advantage of the Custody Account. This account comes at the cost of a few extra fees.
Commission and Fees
DEGIRO’s commissions and fees for trading individual stocks are significantly low. To sweeten the deal further, DEGIRO does not charge monthly or quarter managerial fees. They do not claim any charges for opening or closing accounts.
To put everything in context, the fee for trading individual shares in the United States is EUR 0.50 + USD 0.004 per share. You can appreciate how much you can save by trading on DEGIRO’s platform.
Platform & Tools
Charting Tools: DEGIRO has pop-out interactive charts that display your trading activities. With over 23 analytic tools, there isn’t much to complain about. Unfortunately, DEGIRO does not offer any drawing tools or the ability to save charts and templates.
Mobile Trading Platform: DEGIRO’s mobile app is user-friendly and straightforward. The ability to setup a watch list and trade directly from your phone is quite impressive. Your favorites will automatically synchronize between your website and your mobile app.
There is little to no research on the DEGIRO platform. There is minimal company information on individual companies. You may download PDF documents on funds. These documents offer key information, fact sheets, and prospectuses. No further in-depth analysis or research is available.
DEGIRO has a wide range of assets to trade. These include funds, stocks, bonds, ETFs, options, and futures. DEGIRO offers access to 30 international exchanges. All while providing Smart Order Routing (SOR) through Morgan Stanley. The 30 international exchanges lie within Europe, Asia, North America, and Oceania.
DEGIRO’s educational offerings are limited. However, the content is of high quality. The broker offers ten educational videos through its investor academy. These videos touch on trading and the investment journey. Apart from the ten videos, two additional videos depict how to buy stocks and bonds.
You do not want your investment to sit in the hands of an unsafe broker. Is DEGIRO safe? It is worth a mention that there hasn’t yet been a security breach at DEGIRO. This is quite impressive if we were to consider all the security breaches on online services over the past decade. DEGIRO uses Two Factor Authentication to secure its accounts.
If you are an investor looking for a low-cost way to trade stocks, DEGIRO is a viable option for you. This trading platform is not an award winner, but it sure is straightforward and easy to use. If you are a long-term investor who relies on strong fundamental research, DEGIRO will not deliver.