How to Open a Broker Account on DEGIRO

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(Disclosure: Some of the links below may be affiliate links. For more information, read my disclosure.)

Opened a broker account on DEGIRO Logo

Having decided to start investing in Exchange Traded Funds (ETFs), I needed a broker account. I decided to open an account on DEGIRO. In this post, I am going to go over the reasons for this choice and over how to open a broker account on DEGIRO.

After reading a lot about funds and low-cost index funds in particular and the inefficiency of most actively managed funds, I decided I will stop giving my money to fund managers. Therefore, I decided to start investing in passive index funds and not active funds. Moreover, I also decided to only focus on no-load funds. Currently, I was investing with PostFinance funds, but the Total Expense Ratio (TER) of these funds is high and PostFinance is charging a 0.5% percent load on each buy of funds.

Since we do not have access to excellent mutual funds such as Vanguard funds here, I decided to invest in Exchange Traded Fund (ETF) versions of the funds. This means I need a broker to invest. I looked at the trading offer of PostFinance but it is insanely expensive. Therefore I decided to find a new broker with significantly lower fees.

The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF in transaction credits and I will also receive 20 CHF.

Choosing a broker

The first thing I had to do was to choose a broker. There are really a lot of options. 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
  2. The price per year for your investing style. Check the price of each order you are going to use and make an estimate per month and per year.
  3. The ease of use. You are going to use it regularly, you want it to be simple.
  4. The security of the broker
  5. The reputation of the broker.

My broker

Personally, I plan to invest once a month, maybe twice a month, but no more. I will follow a buy-and-hold strategy, meaning I will only sell if I need the money (long-term). If there is a strong imbalance in my portfolio, I may sell to rebalance it as well. I have compared a lot of brokers and three candidates have interested me:

Swissquote is my favorite Swiss broker. But looking at the commission fees and the custodian fees, it cannot compare to the other twos.  Interactive Brokers is a very popular broker with very good fees and an excellent reputation. DEGIRO is a younger broker with outstandingly low fees. I have struggled quite a lot to decide between those twos. But finally, I am going with DEGIRO. The fees are really low and overall it seems alright. Moreover, even if there were some problems at the beginning, it seems they are really working on improving their system. The two main reasons for choosing DEGIRO over Interactive Brokers were:

  1. No custodian fee! At Interactive Brokers, you have to pay 10 USD per month if you do not have at least 100’000 USD. Since my portfolio will be very small to start with, I did not want such fees.
  2. One free ETF per month! At DEGIRO, you have a list of free ETFs. Each month, you can trade one of these ETFs, in any direction (buy/sell), free! This was also a very important factor for me to lower the costs.

Opening an account on DEGIRO

Degiro Logo
Degiro Logo

Therefore, I just opened an online DEGIRO account. The process is quite simple. You need to fill out a bunch of personal information. Then, you need to activate your account from your mail. And then again answer a bunch of questions about you and accept the conditions.

There is a very important step here! You can select which kind of account you want. There are two types of account: Standard and Custody. The default option is the standard account. In the standard account, DEGIRO can loan your securities. Personally, I cannot accept this. On the other hand, the Custody account means the securities are held separately and cannot be loaned to third parties.

DEGIRO Account Types

There are a few disadvantages of having a custody account:

  • You cannot trade short. This should not be an issue for passive investors.
  • You do not have access to credit or buying on margin. This should not be an issue unless you really want 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 3% of the dividend you get. This is a bit high as your portfolio grow. 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.

I recommend the custody account. But 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 standard account. When they ask if you accept your securities to be loaned, you can say you want a custody account instead. This is what I did.

Finalize your DEGIRO account

Then, you need to make the first deposit to validate your account number. You can either make it instant with Sofort or make a regular bank deposited. I chose to deposit 100 CHF with instant deposit.

Finally, your account is ready. If you do it, I strongly recommend you to turn-on two-step verification. This can be done with a Google Authenticator.


Creating an account at DEGIRO 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 really straightforward and fast.

If you want to transfer more money, later on, it will take more time for the money to reach your account. I think they are a bit slow for 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.

If you are interested, you can also read about Interactive Brokers, another great broker.

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

About the author

Mr. The Poor Swiss

Mr. The Poor Swiss is the main author behind In 2017, he realized that he was spending more and more every year, 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 2018, he saved more than 40% of his income. He made it a goal to reach Financial Independence. You can send Mr. The Poor Swiss a message here.

13 thoughts on “How to Open a Broker Account on DEGIRO”

  1. 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.

  2. 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?


        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!

  3. 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.


    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!

  4. 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,

    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!

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