How to Open a DEGIRO account and start trading

Mr. The Poor Swiss | Updated: | Investing
How to Open a Broker Account on DEGIRO

(Disclosure: Some of the links below may be affiliate links)

If you want to start investing in the stock market, you will need a broker account. DEGIRO is a good broker for European investors.

In this article, we will see in detail how to open an account with DEGIRO. Once these steps are done, you will be ready to trade Exchange Traded Funds (ETFs) on DEGIRO.

DEGIRO is a cheap broker for European people. It is well priced and offers a great choice of investment products.

Choosing a broker

The first thing you have to do is to choose a broker. Your broker will give you access to various stock exchanges. And from them, you will be able to buy and sell ETFs.

There are a lot of options for brokers. The choice will depend on your investing style, of course. You need to know in advance how often you are going to trade. You also need to know which stock exchanges you are going to invest in. Some stock exchanges are more expensive than others. And not all brokers offer the same price for each exchange.

The main points for comparing brokers should be:

  1. The availability of your products. You want to make sure you have access to all the ETFs you need for your portfolio.
  2. The price per year for your investing style. Check the fee for each order you will use and make an estimate per month and year. You want to spend as little money as possible on your broker.
  3. The ease of use. You are going to use it regularly, so you want it to be simple. But since you are not going to use it every day, this is not a deal-breaker.
  4. The security of the broker. You do not want to have issues because you are using an unsafe broker.
  5. The reputation of the broker. If there is anything shady about a broker, you should avoid it.

These are the main points that most people should use to compare brokers. Based on your situation, you may have different points for comparing them.

In the end, do not forget that choosing a broker is a personal choice.

DEGIRO as a broker

DEGIRO is a good European broker from the Netherlands. For European investors, it is an excellent choice.

If you want to learn more, you can read my review of DEGIRO.

With DEGIRO, a few of the ETFs are free of transaction costs. If you already know your portfolio, you can take a look a the DEGIRO list of Free ETFs.

In this article, we will see the different account types at DEGIRO and how to open an account with them. After that, the next step will be to start trading with DEGIRO.

DEGIRO Account Types

Before you open an account at DEGIRO, you need to know the several types of accounts from DEGIRO.

There are two types of accounts: Basic and Custody. The default option is the Basic account. In the Basic account, DEGIRO can loan your securities to other users, and this is how they can keep the fees low.

On the other hand, the Custody account means the securities are held separately, and they cannot lend them to third parties.

But, there are a few disadvantages of having a custody account:

  • You cannot trade short. It should not be an issue for passive investors.
  • You do not have access to credit or buying on margin. It should not be an issue unless you want to use leverage.
  • You cannot trade turbos, speeders, and sprinters. Once again, this should not be an issue.
  • You have to pay if you want real-time prices
  • You cannot trade derivatives

Overall, I do not think these limitations are a big deal for passive investors that are in for the long term. But if you want to do some active trading on the side, it may not be enough for you.

And finally, you will be charged 1 EUR and 3% for each dividend you get. This fee is a bit high as your portfolio grows. If you got a yield of 2%, this fee is a 0.06% fee overall. Moreover, if you get only accumulating ETF, you should not have this issue.

If you do not want DEGIRO to lend your securities, you should opt for the Custody account. However, you need to be aware of the fees that you will be putting on your dividends, and this fee is not negligible. For a large account, a Custody account can be several times more expensive than a Basic account.

I do not think the risk is high by lending your shares. When investors are borrowing shares, they are providing collateral. So this collateral will protect you. But there is an additional risk. You have to decide if you are willing to take it or not.

In the end, it is entirely up to you. If you do not want to pay the extra fees on dividends, then go for the Basic account. When they ask if you accept your securities to be loaned, you can say you want a custody account instead.

Open a DEGIRO account

It is now finally time to describe how to open a DEGIRO account. The process is straightforward.

First, you go to the DEGIRO website. And then, you use the big “Open An Account” green button on the top right. From, there you will have to fill in standard information for an account:

  • Email, username, and password
  • Your address

Then, you need to activate your account from your mail. And then again, answer a bunch of questions about you and accept the conditions.

During this process, you will have to choose the account type: Basic or Custody. You need to pay attention to this because you will not be able to change it afterward. I would like DEGIRO to make it possible to change the account type. But currently, you have to create a new account and transfer your shares (with a fee) if you ever want to change your account type.

Finalize your DEGIRO account

Then, you need to make the first deposit to validate your account number. You can either make it instant with SORFORT or make a regular bank transfer. I chose to deposit 100 CHF with an instant deposit (SOFORT).

Finally, your DEGIRO account is ready. Once you are there, I strongly recommend you turn on two-step verification. You can use a Google Authenticator or any other authentication service. It is essential to improve the security of your online broker account.

Conclusion

Opening a DEGIRO account is very simple. With the instant deposit, you can get your account ready in less than one hour. You can then start trading directly. The procedure is straightforward and fast, and it is easily the most simple broker account I have ever opened.

If you want to transfer more money later on, it will take more time for the funds to reach your account. DEGIRO is a bit slow in processing the money. Once the money reaches them, it can take more than one day for it to appear on your account. But wire transfers are still better than paying for instant deposits.

Best Broker for Swiss Investors
Interactive Brokers

Interactive Brokers is an outstanding broker, with extremely affordable fees! Trade U.S. security for as little as 0.5 USD!

If you are a Swiss investor, there is a better broker: Interactive Brokers. This is the broker I am using myself an I am very satisfied. If you are interested, you can also read about Interactive Brokers, a broker even cheaper than DEGIRO.

What do you think about DEGIRO? Which broker do you use?

Mr. The Poor Swiss is the author behind thepoorswiss.com. In 2017, he realized that he was falling into the trap of lifestyle inflation. He decided to cut on his expenses and increase his income. This blog is relating his story and findings. In 2019, he is saving more than 50% of his income. He made it a goal to reach Financial Independence. You can send Mr. The Poor Swiss a message here.

18 thoughts on “How to Open a DEGIRO account and start trading”

  1. Hi!

    Great blog! I can’t wait to read more.

    I’d say I am currently at a similar financial position you were when you started your blog.

    Would you say these three actors are still the three best on the market in 2021?
    With your current experience would you have started with some other investments three years ago?

    Kindly,
    FB

    1. Hi FB,

      With my current experience, I would have started directly with Interactive Brokers and paid the custody fee, I would not have bothered with DEGIRO.
      But I would have invested in the same portfolio I am using now.
      Overall, I would not change much in my investment strategy.

  2. Dear TPS (The Poor Swiss),
    I am a fan of your blog. I need to say it is amazing and inspiring. Really great work! However I may some questions sometimes.

    You have mentioned about borrowing the shares and mentioned that you do not think the risk is high by lending your shares.
    Questions:
    – Risk of what?
    – If you get a dividend. Is the income yours or the borrower?
    – If you decide to sell the share that is borrowed, can you do it anytime you like?

    Thank you for the answer,

    1. Hi TPP,

      Thanks for your kind words!

      1) The risk is that the lender defaults and DEGIRO defaults too at the same time. That’s unlikely, but not impossible in a very financial situation.
      2) Since this is transparent lending, I believe that the dividends should be yours. But I am not entirely sure about that.
      3) To the best of my knowledge, yes. This is how transparent lending should work. Shares are pooled together by brokers. So selling should not be an issue, unless all the shares are borrowed (unlikely), in which case, I do not know what DEGIRO would do.

      Thanks for stopping by!

  3. Hi Mr. Poor Swiss,
    With regards to DEGIRO.

    Do you know what the different different categories mean? Each ETF and Stock seems to have a category. For ex. VUSA has a Category G against it.

    Thanks in advance.

    Kind regards,
    V

    1. Hi V,

      That is an excellent question.

      This is the risk rating of each share. The lower the rating, the higher margin you can take on this element. So if you have a margin account, you can use more leverage on a B share than on a C share. A to B are for shares and E to G are for ETF I believe.

      If you are not using leverage, do not worry about these ratings. They do not mean anything outside of degiro.

      I hope that helps :)

      Thanks for stopping by!

  4. Hello mate,

    Thanks for the explanation on this subject! Very good. Better than the website DEGIRO itself. or at least I didn’t find it.

    I haven’t understood what do you mean by “You do not have access to debit money” did you mean we can’t have loans from DEGIRO?
    Because if I make a bank transfer to my DEGIRO account I expect to have debit on my account after I receive it.

    Thanks,
    André

    1. Hi André,

      I am glad you like it :)

      Thanks for pointing that out :P I meant credit of course and not debit. I wanted to say that you would not be able to buy with leverage. It is fixed in the article now!

      Good luck with your investments!

  5. Hello,
    Your blog is very helpful and easy to understand, thanks alot.
    After reading this article, I just wonder how is the currency exchange with Degiro ? We are based in CH so CHF is the main currency, but most of the ETFs are in Euro or USD .
    Any cost involved to convert the currency and how to top up the fund or transfer the fund back to CHF or Euro bank accounts ?
    I know that many people prefer IB because of the currency exchange rate is low and money transfer is handy.

    1. Hi Bean,

      Thanks for your kind words :)

      With DEGIRO, for Automatic transfers of currency, you will pay 0.1% of the amount of money converted. In automatic mode, you cannot do any manual transfers.
      If you want to use the manual mode, you will pay € 10.00 + 0.02% of the amount. You need to transfer big amounts if you want to use the manual mode.

      I would not use DEGIRO if it’s only for money exchange. IB is better for that with manual conversions. But for a broker usage, automatic conversion is fine.

      Thanks for stopping by :)

      1. Hi Mr. Poor Swiss,

        very clear and straight-to-the-point article. Like you, I’m looking for a broker account and I’ve heard many positive feedbacks about Degiro.
        Since you have quite some experience with them, I’d like to ask you a rather “structured” question hoping you will be able (and willing) to answer.

        Due to their structure, they require from any subscriber to link an european/swiss/Uk bank account to the Degiro account, but they do not accept any other foreign bank accounts (including those in Jersey or Mann).
        It forces me to open an account in Europe for my investments since I am european but resident in the UAE.

        How do the “automatic” transfer and the “manual” transfer” work, suppose I open a bank account in Euro? The commissions will be applicable only when transferring money from a different currency? Can I decide to transfer money from other bank accounts different than the one linked to the Degiro account?

        Cheers!
        Federico

        1. Hi Federico,

          FOr the first question, I am not sure which commissions you are talking about? Between your account and the Euro account? The fees will depend on which bank account you use in Euro. But if you transfer pound to a Euro account, most banks will make you pay a hefty fees. You could try using Revolut to do the transfers (your account -> Revolut -> Euro account -> Degiro). But it’s starting to be complicated (and only 10K per month). To know the exact fees, you will need to get information for each bank you are considering and compare them.

          For the second question, unfortunately, no. You can only transfer to and from the account configured in your account. And you cannot even change this account yourself, you have to ask the support to do it for you. It’s pretty bad honestly.

          Given your situation, I am wondering whether IB would not be a better fit for you. You will be able to send GBP directly to them and the conversion will be very cheap.

          What do you think?

          Thanks for stopping by!

  6. Hello!
    Could you elaborate on why you preferred DeGiro over the InteractiveBrokers? I am currently in the selection process :)

    1. Hello,

      My choice was driven by the fees. Two main points here. Degiro has no custody fees. With IB, if you have less than 100K USD, you’ll pay 10USD per month. Since my portfolio is small, I really didn’t want to pay this much. Moreover, Degiro has a list of free ETF, so each month you can a free trade if you use only free ETFs. I don’t use only free ETFs, so I have to pay a few trades of course.

      On the other hand, IB is older and more mature, so many people use this argument to choose IB.

      If you have a small portfolio and care a lot about fees, Degiro is a good choice in my opinion.

Leave a Reply

Your comment may not appear instantly since it has to go through moderation. Your email address will not be published. Required fields are marked *