Degiro Review: Is This Broker Scam or Legit?

Navigating the world of online brokerage platforms can be overwhelming. With countless options vying for your attention, how do you determine which brokers are trustworthy and which might pose risks? For investors and traders in the United States and around the globe, Degiro has emerged as a notable player, promising low-cost trading, transparency, and user-friendly interfaces. But, with any financial platform, skepticism is natural—especially given the history of scams and dubious practices in the online trading sphere.

In this comprehensive review, we’ll dive deep into everything you need to know about Degiro. From its origins, regulation, and offerings to fee structures, platform functionalities, customer support, and user reviews, this piece aims to provide an unbiased, detailed, and human-understood perspective so you can make an informed decision.

What is Degiro? An Overview

Degiro is a Dutch-based online broker that was established in 2013. It quickly gained popularity across Europe due to its promise of ultra-low trading fees and a clean, straightforward platform. Unlike traditional brokerage firms that often charge high commissions and hidden fees, Degiro has positioned itself as a cost-effective alternative tailored for active traders and long-term investors alike.

Key Highlights:

Founded in 2013 in the Netherlands
Focus on low-cost trading
Serves clients across multiple countries in Europe, plus the United States through specific arrangements
Offers access to global markets, including stocks, ETFs, bonds, options, and futures

Despite its rapid growth and positive reputation among many traders, the question remains: Is Degiro a scam or a legitimate brokerage? To answer this, we will examine its regulatory status, business model, and customer feedback.

The Legitimacy of Degiro: Regulation and Licensing

One of the most crucial factors in evaluating any brokerage is its regulatory standing. Regulations serve as a safeguard, ensuring that brokers adhere to strict standards of transparency, client fund segregation, and fair trading practices.

Regulatory Status in Europe

Degiro is regulated by the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB), which oversee its compliance with European financial regulations. It is a member of the Investor Compensation Scheme in the Netherlands, providing a layer of protection for client funds up to certain limits.

Regulation in Other Countries

Italy, France, and Spain: Degiro operates under local licenses, complying with national regulations.
United States: Although Degiro initially targeted European markets, it has announced plans to expand to the US. Currently, it functions primarily through partnerships, not as a U.S.-registered broker.

Is Regulation Enough?

While regulation boosts credibility, it’s important to understand what protections are in place. For example, the investor compensation scheme protects client funds up to a specific amount if the broker becomes insolvent.

In Summary: Degiro operates under stringent regulatory oversight within Europe and holds the necessary licenses, making it a legit broker. However, for U.S. clients, the platform’s presence is more limited, and regulatory protections differ.

Business Model and Fee Structure

Cost is a primary selling point of Degiro, especially for cost-conscious investors. Its fee structure is transparent, with few hidden costs, but it is essential to understand the nuances.

Trading Fees

Stocks & ETFs: Starting at €2 per trade in European markets; US stocks generally cost $0.50–$1.00 per order.
Options & Futures: Commission based on the instrument and exchange. Typically, €2.25 + exchange fees for European options; US options may have a flat fee per contract.
Bonds: Fees are relatively low compared to traditional brokers, often around €1 per bond.

Other Charges

Account maintenance: No annual maintenance fees.
Inactivity fees: Degiro does not charge inactivity fees, which is a significant advantage.
Currency conversion: Extra fees apply when trading in markets outside the Euro zone—typically a 0.25% fee, which is relatively competitive.

Additional Costs and Hidden Fees

Degiro’s transparency means it avoids hidden charges. However, some costs to watch out for include:

Market data feeds: Might require separate subscription fees.
Withdrawal fees: A small fee applies when withdrawing funds, depending on the country.
Settlement & exchange fees: Standard for trading on various exchanges.

How Does Degiro Compare With Competitors?

Compared to traditional brokers charging $5–$10 per trade, Degiro’s minimal fees are a clear advantage. Its flat-fee or per-share models attract active traders, but less frequent investors should compare overall costs carefully.

Platform Usability and Trading Tools

A platform’s functionality can make or break your trading experience. Degiro prides itself on simplicity and ease of use, making it attractive for both beginners and experienced traders.

Web Platform

User-friendly design
Quick order execution
Access to real-time prices
Focused on core functionalities: trading, account management, and research

Mobile App

Available on iOS and Android
Features similar to the web platform
Seamless trading experience on the go

Advanced Features

While Degiro’s platform is straightforward, it lacks some advanced charting tools, technical indicators, or algorithmic trading features found in brokerage giants like Interactive Brokers or TD Ameritrade.

Research and Analytics

Basic market data
Limited research tools
No proprietary analysis platform
Good enough for most retail traders who rely on external research sources

Is the Platform Suitable?

Degiro’s platform hits a sweet spot for cost-effectiveness and simplicity. But if you’re a professional trader needing advanced charting or high-frequency trading tools, you might find it lacking.

Product Offerings: What Can You Trade?

Degiro provides access to an extensive range of financial instruments, catering to diverse investment styles.

Equities & ETFs

Access to over 50 global stock exchanges
Wide offerings of ETFs with competitive fees

Bonds & Fixed Income

Government and corporate bonds from numerous markets
Fixed income products suitable for diversified portfolios

Options & Futures

US and European derivatives markets
Suitable for hedging or speculative trading

Mutual Funds

Limited offering compared to traditional brokers
No commission fees for direct investments in mutual funds

Others

Commodities and warrants are not available through Degiro

Market Access

Degiro provides access to major markets worldwide, offering a global reach that rivals many traditional brokers.

Customer Support and User Experience

Good customer support can transform a transactional relationship into a trusted partnership.

Support Channels

Email support and contact form
Phone support in selected countries
FAQ section and educational resources

Response Time & Quality

Generally prompt responses
Support staff capable of handling basic queries
Limited support for complex issues or in-depth trading assistance

Educational Resources

Degiro does not focus heavily on investor education compared to other brokers. Users should supplement their knowledge externally.

User Reviews and Feedback

Many users appreciate the low fees and straightforward platform.
Some complaints include occasional website glitches, especially during peak trading times.
Limited availability of personalized support for novice traders.

Safety, Security, and Customer Protections

For peace of mind, consider how Degiro safeguards client assets and personal data.

Fund Segregation

Customer funds are kept separate from company assets, reducing risk in case of insolvency.

Data Security

Uses industry-standard encryption and security protocols to protect user information.

Fraud Protection

Does not offer protected deposit schemes comparable to FDIC insurance in the U.S., but Dutch regulation provides a level of assurance.

Investor Compensation Scheme

Eligible clients benefit from Dutch investor compensation, offering limited reimbursement if the broker defaults.

The Pros and Cons of Choosing Degiro

Pros

Very low trading fees
Accessibility to international markets
No inactivity fees
User-friendly platform
Regulated in Europe, providing credibility

Cons

Limited research and educational resources
No margin trading (in most jurisdictions)
Not fully available in the U.S. as a registered broker
Fewer advanced trading tools

Is Degiro a Scam? The Truth Behind the Popularity

Based on regulation, transparent fee structures, and positive user signals, Degiro is a legitimate broker, not a scam. It operates under strict European oversight, and its business practices align with industry standards.

However, as with any platform, it’s crucial to be aware of certain limitations:

It’s more suited for investors seeking low-cost trading rather than advanced analytical tools
European regulation differs from U.S. regulation, where protections are more comprehensive under bodies like the SEC

Some misconceptions or rumors about Degiro stem from misunderstandings about its business model or limitations in its services, but these do not amount to scam behaviors.

FAQs about Degiro

Q1: Is Degiro safe for U.S. investors?
While Degiro is regulated within Europe, its primary operations are outside the U.S. It does not operate as a registered U.S. broker-dealer, so U.S. clients should be cautious and understand different regulatory protections.

Q2: Can I open a Degiro account if I am a resident of the U.S.?
Currently, Degiro primarily caters to European residents. U.S. residents may have limited access or need to use intermediary services or partner platforms.

Q3: Are my funds protected if Degiro goes bankrupt?
Yes, funds are segregated and protected under Dutch investor compensation schemes up to a specified amount. But always consider the risk inherent to any broker.

Q4: Are there any account minimums?
No, Degiro does not impose minimum deposit requirements.

Q5: How does Degiro compare with other low-cost brokers like Robinhood or Interactive Brokers?
Degiro offers competitive fees especially in Europe, but US-based investors might find Interactive Brokers more suitable for advanced tools and U.S. regulation. Robinhood is more beginner-focused, lacking international market access.

Q6: Is there a demo account option?
Degiro does not currently offer a demo account, which can be a drawback for new traders wanting to test the platform.

Q7: Can I trade cryptocurrencies on Degiro?
No, Degiro does not support cryptocurrencies. For crypto trading, other platforms are required.

Final Thoughts: Is Degiro Right for You?

Degiro presents a compelling case for active traders and cost-conscious investors seeking access to European and global markets, with transparent fees and a reputable regulatory background. Its platform’s simplicity makes it approachable, but its limited research and advanced tools mean it might not serve professional traders or those seeking intricate analytical capabilities.

For U.S. investors:

Be aware of regulatory limitations
Consider whether international trading aligns with your investment goals
For U.S.-specific accounts, explore local brokers with SEC registration

For experienced, global investors:

Degiro can be a powerful tool to diversify and lower trading costs
Always ensure you understand the specific fee structures for each market

In conclusion, Degiro is NOT a scam—it’s a fully licensed, transparent, and reputable broker operating within European regulations. As with any financial decision, due diligence and understanding your own investment needs are critical.

Invest wisely. Happy trading!