Everything You Need to Know about Degiro

DEGIRO has earned a reputation for reliability in stock trading. Established in 2008 by a group of former Binck Bank workers, the company began offering online brokerage services in 2013. Within a short time, it has become one of Europe’s leading retail stockbrokers. DEGIRO, headquartered in the Netherlands, has expanded its online trading platform to include over 2 Million accounts in 18 European countries.

Growth of Degiro

DEGIRO adopted an aggressive approach to the market to establish itself as a standard. As an online discount broker, it can differentiate itself from the competition by providing multi-asset brokerage services in more than 84 assets, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, and warrants, among others. DEGIRO established a new benchmark in the stock trading industry in 2021 when it merged with the German online broker Flatex AG. With its banking license, it is now the most prominent online execution-only broker in Europe.

Despite offering various instruments, DEGIRO does not deal in currency pairs or cryptocurrencies, which most online brokers provide clients with nowadays.

Nonetheless, broker degiro is one of the most trustworthy brokers in Europe, holding licenses from multiple financial regulatory agencies. Innovation and openness are essential to DEGIRO’s corporate strategy.

Pros and Cons of Degiro

DEGIRO’s meager commissions on all market instruments distinguish it as an excellent discount broker. In contrast to most other brokers, DEGIRO does not charge for most of its non-trading services, including withdrawal, deposit, and inactivity. The account opening procedure is straightforward, and the trading software is well-designed and intuitive.

Pros

  • One of the top discount brokers with the most affordable charge structure.
  • Licensed by premier financial institutions
  • Easy to establish a trading account
  • User-friendly trading platform
  • Banking license
  • Access to global stock exchanges

Cons

  • Limited product portfolio (does not offer Forex, CFDs, and Cryptocurrency investments).
  • No Trial Account
  • Only one payment option is available (Bank transfer)
  • Few research and analysis resources

DEGIRO is registered with several prestigious European financial regulators, including AFM, DNB, FCA, and BaFin. Therefore, the investors’ funds are secure. Within a few years of launching its online brokerage services to retail investors, it is not surprising that DEGIRO has garnered the trust and confidence of over 600,000 clients.

A bank transfer is the only accepted form of payment at DAGIRO. In addition, the platform’s research capabilities are limited and lack significant analytic functionality.

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Regulation and Licensing Managed by DEGIRO

The DEGIRO regulatory position is remarkable in its own right. Following its merger with Flatex AG in 2021, DEGIRO now possesses its banking license, even though it is a private corporation. Naturally, DEGIRO is subject to the direct regulation of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and the indirect supervision of the European Central Bank (ECB). In addition, the Dutch Central Bank and the Authority for the Financial Markets (AFM) keep everything financially stable in the Netherlands (DNB). In addition, the Financial Conduct Authority of the United Kingdom has confirmed its authenticity (FCA).

All of these rules and licensing requirements are required to be in place to guarantee a secure environment for trading and investing and to limit the probability of fraud and scams being committed by brokers. These regulations and licensing standards are required to be in place. To obtain a license from the appropriate government, each broker must demonstrate that they have satisfied specific requirements.

Does DEGIRO enable paper trades?

DEGIRO’s services are exclusively offered online. No paper (certified) shares or contract notes are issued. But if you are interested in paper trading, you should check “Best Paper Trading App” by Tradersunion.

Our Verdict

DEGIRO’s stock trading is reliable. The company, founded in 2008 by former Binck Bank employees, commenced online booking in 2013. It’s one of Europe’s leading retail stockbrokers. DEGIRO, based in the Netherlands, has 2 Million accounts across 18 European countries.

DEGIRO went after the market aggressively to become a standard. As an online discount broker, it offers multi-asset brokerage services in more than 84 assets, including stocks, bonds, mutual funds, ETFs, options, and warrants. DEGIRO merged with German online broker Flatex AG in 2021, setting a new industry standard. Its banking license makes it Europe’s largest online execution-only broker.