How to Open a DEGIRO account and start trading
| Updated: |(Disclosure: Some of the links below may be affiliate links)
You will need a broker account to start investing in the stock market. DEGIRO is a good broker for European investors.
In this article, we see 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 very affordable broker for European investors. It is well-priced and offers a great choice of investment products.
And remember: Investing involves the risk of loss. Always do your research before you invest and know why you invest and what you invest in.
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 will trade. You also need to know which stock exchanges you will invest in. Some stock exchanges are more expensive than others. Not all brokers offer the same price for each exchange.
The main points for comparing brokers should be:
- The availability of your products. You want access to all the ETFs you need for your portfolio.
- The price per year for your investing style. Check the fee for each order you will use and estimate per month and year. You want to spend as little money as possible on your broker.
- The ease of use. You will use it regularly, so you want it to be simple. But since you will not use it daily, this is not a deal-breaker.
- The security of the broker. You do not want issues because you are using an unsafe broker.
- 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.
Ultimately, 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 look at the DEGIRO list of Free ETFs.
This article will show you 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 Legacy Account Types
Currently, there is only one interesting account type left, the Basic account. DEGIRO stopped offering Custody accounts in late 2021 without communicating the rationale for that change.
Before, there were two main types of accounts: Basic and Custody. The default option was the Basic account. In the Basic account, DEGIRO can loan your securities to other users, which 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 to third parties. There were also a few disadvantages, such as dividend fees, but people liked this account to avoid securities lending.
It is a bit sad that DEGIRO stopped offering the Custody account. It was a good option for people who did not wish to see their shares lent to others.
On the other hand, I do not think the risk is high in lending your shares. When investors borrow shares, they provide collateral. So, this collateral will protect you. But there is an additional risk.
You just need to be aware that DEGIRO may lend your shares. If this is not acceptable to you, you should use another broker.
If you want leverage, you can also access three other account types: Active, Trader, and Day Trader. However, for simple passive investors, the Basic account is more interesting.
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 the 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 many questions about you and accept the conditions.
Finalize your DEGIRO account
Then, you need to make the first deposit to validate your account number. You can 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. You can get your account ready in less than one hour with an instant deposit. You can then start trading directly. The procedure is straightforward, fast, and easily the most simple broker account I have ever opened.
If you want to transfer more money later, the funds will take longer to reach your account. DEGIRO is sometimes a bit slow in processing the money. Once the money reaches them, it can take more than one day to appear in your account. But wire transfers are still better than paying for instant deposits.
What do you think about DEGIRO? Which broker do you use?
Download this e-book and optimize your finances and save money by using the best financial services available in Switzerland!
Download The FREE e-bookRecommended reading
- More articles about Best Brokers
- More articles about Investing
- The best broker for Swiss investors in 2024
- How to Buy an ETF on Interactive Brokers the Easy Way
- eToro Review for Swiss investors in 2024
Hello how I put money from basic account to trader account? Thank you
As far as I know, you can’t change account type at DEGIRO.
Hello,
Thanks a lot for this great blog, very usefull.
I have a question with Degiro, when i opened the account they asked me a questionnaire about “Request a reduced withholding tax rate on U.S. investments”
https://www.degiro.ch/helpdesk/fr/fiscalite/conventions-fiscales/comment-puis-je-demander-lapplication-du-taux-de-precompte-reduit-la
As a Swiss people, we should be able to ask to this ? I think yes but i’m not sure.
Thanks by advance !
Hi Steve,
Yes, as Swiss people you can (and should) get this reduction. At DEGIRO, this will only be useful if you trade US shares.
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
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.
I am super temped to know what your portfolio consists of. I am sorry if I missed in the blog materials. They are quite a lot! Thank you!
My portfolio is really not that interesting: Our Portfolio
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,
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!
Thank you for the answer. Have a great day!
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
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!
Ah great, not huge fan of borrowing more to build wealth!
Thanks for the clarification :)
You’re welcome!
Let me know if you have any other questions!
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
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!
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.
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 :)
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
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!
Hello!
Could you elaborate on why you preferred DeGiro over the InteractiveBrokers? I am currently in the selection process :)
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.
Hahahha !!! Very good explanation , and very good experience.
Wish you all the best.