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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.

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, DE GIRO broker 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.

DEGIRO is registered with many 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.

Despite its small asset portfolio, DEGIRO provides clients access to more than 50 worldwide stock exchanges, thereby expanding the scope of trading and investment. However, it lacks vital assets such as Forex and CFDs. DEGIRO, unlike other trading platforms, does not offer demo accounts to novice traders. The lack of real-time market price updates is the greatest worry. The prices are 15 minutes behind. A trader must pay a yearly fee for access to real-time market prices.

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

Regulation and Licensing by DEGIRO

The regulatory status of DEGIRO is excellent. Following its 2021 merger with Flatex AG, DEGIRO has its banking license while being a private firm. DEGIRO is governed directly by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and indirectly by the European Central Bank (ECB). In addition, the Dutch Central Bank (DNB) and The Netherlands Authority for Financial Markets (AFM) continually monitor their operation and financial stability. The UK Financial Conduct Authority also confirms its legitimacy (FCA).

All these regulations and licensing requirements are essential to maintain a secure trading and investing environment and reduce the possibility of fraud and scams by brokers. Each broker must meet specified needs to obtain a license from the appropriate government.

Fee and Commission Arrangements

DEGIRO has gained a reputation for providing the lowest rates on the market (up to 80% less than rival brokers). As a bargain broker, its pricing is highly competitive.

Trading fees and non-trading fees are the two most common forms of costs that brokers charge their clients.

Trading Fees

Broker commissions, financing rates, conversion fees, and spreads comprise trading costs. These costs are assessed whenever the client trades assets.

Non-Trade Charges

Non-trading fees are unrelated to trading in and of themselves. Non-trading expenses include withdrawal, inactivity, and deposit fees, among others.

DEGIRO permits its customers to transfer funds to their trading accounts for free. DEGIRO does not need a minimum initial deposit when creating an account. There are no withdrawal fees, but there is a conversion fee if the base and withdrawn currencies differ. DEGIRO’s pricing structure does not include inactivity fees, although the broker suggests that the client close his account in this instance.

Degiro: Recensione e Guida Pratica 2022 | Pro e Contro

Fees for Exchange Connection (Connectivity Fee)

DEGIRO levies connectivity fees for international trading.

For instance, a trader residing in the United Kingdom is exempt from trading fees on the London Stock Exchange (LSE).

The trader must pay €2.5 annually as an exchange connection charge, regardless of the volume of trades, if he purchases shares from other brokers outside his home market, such as the New York Stock Exchange (NYSE).

Is DEGIRO a Safe Drug?

DEGIRO is one of the most secure and trustworthy brokers in Europe. As a result of its regulatory and financial compliance with leading authorities such as BaFln, DNB, FCA, and AFM. DEGIRO separates client assets into distinct entities. This ensures that clients keep their investments if the broker becomes insolvent. As a result of its merger with Flatex AG, DEGIRO is now subject to the German Deposit Guarantee Scheme, which compels the broker to guarantee up to €100,000 in Cash Account deposits. DEGIRO does not offer negative balance protection to its clients, but since it does not trade in Forex and CFDs, this should not be a concern.

Customer Support

The low-cost structure is a vital selling factor; however, DEGIRO might improve its customer service. It provides most services, including deposits, withdrawals, and dormant accounts, at no additional cost. Management fees are required for specialized customer service.

DEGIRO exclusively provides customer care in 18 languages via phone calls and emails. They are reasonably capable of resolving clients’ difficulties. Email help sometimes takes a while; however, phone support is quite responsive. DEGIRO lacks a live chat service for its customers, which is a significant shortcoming.

Can I Paper Trade Without Cost?

eToro Paper Trading is the best paper trading platform for practicing stock trading. Unlike the other paper trading sites on this list, eToro is the only one that allows mobile virtual trading. It provides free paper trading in a realistic simulator with access to equities, cryptocurrencies, and exchange-traded funds.

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