Degiro Broker Review 2024: Low Cost Investing for Dividend Investors – An Introduction
Are you tired of paying high fees to trade dividend stocks? Imagine a broker that combines low fees, simple market access, and helpful tools for dividend investors. Degiro, one of Europe’s most popular brokers, claims to offer all this and more. But does it live up to the hype? And more importantly, is it the right choice for dividend investors like you?
In this review, I’ll break down everything you need to know about Degiro. I’ll look at its fees, the types of accounts it offers, and features like custody fees, market access, and currency conversion fees. You’ll also learn about the pros and cons for dividend investors, including what it’s like to trade individual stocks, exchange-traded funds, and investment funds on big stock exchanges like the New York Stock Exchange.
If you’re a long-term investor focused on building steady cash flow, this review will help you decide if Degiro is worth your time and money. Degiro offers competitive fees, an easy-to-use platform, and access to a wide range of financial instruments. However, there are some drawbacks that might make other brokers a better fit for your needs.
Let’s dive in and find out if Degiro truly delivers what it promises for dividend investors.
What is DEGIRO?
DEGIRO is a well-known online broker in Europe. It lets you invest in a variety of products, like stocks, ETFs (exchange-traded funds), and options. Backed by the Dutch bank ING Group, DEGIRO is seen as a reliable and trusted platform. Its low fees and simple-to-use design make it a popular choice for both beginner investors and experienced traders.
The platform is available in several European countries, such as Switzerland, Germany, and France. It gives investors access to many financial markets worldwide. Whether you’re just starting out or have been trading for years, DEGIRO‘s platform is built to fit your needs. With low fees and access to global markets, DEGIRO is a flexible and affordable option for many European investors.
TL;DR: Is Degiro Right for You?
Pros: Low trading fees, easy to open an account, access to stock markets worldwide and useful tools for technical and fundamental analysis.
Cons: No saving plan features and charges currency conversion fees
Verdict: DEGIRO is great for those who want low-cost investing and access to global financial markets. However, it may not be the best fit for investors focused on dividend reinvestment.
Stay with me as I explore more about what makes DEGIRO unique—and where it could improve!
2. Key Features of Degiro
Degiro is one of the leading platforms for low-cost investing, especially for dividend investors. Let’s break down its key features and tools that make it popular with both casual traders and long-term investors.
Easy-to-Use Trading Platforms
Degiro’s platform is designed to be simple and user-friendly. It has a clean interface that works well for tracking investments and analyzing stocks. You can access it on your computer or through Degiro’s mobile app, which makes it easy to manage your portfolio on the go.
Access to Global Markets
With Degiro, you can trade on major stock exchanges like the New York Stock Exchange and other global markets. Whether you’re interested in individual stocks, exchange-traded funds (ETFs), or investment funds, Degiro gives you access to a wide range of options. This is perfect for investors looking to explore European dividend stocks or popular American markets.
Different Account Options
Degiro offers several account types to suit different needs:
- Basic Account: Great for retail investors.
- Day Trader Account: Ideal for active traders.
- Custody Account: For those who want extra security and prefer not to participate in securities lending (though it comes with fees, specially on dividend and coupon processing fees).
Low Fees That Save You Money
Degiro is known for its low trading fees, which makes stock and ETF trading more affordable. Transaction fees are minimal compared to other brokers. However, keep an eye on:
- Deposit and Withdrawal Fees: No deposit or withdrawal fees with degiro.
- Currency Conversion Fees: For trades in foreign markets (0.25% fee with Auto FX trader).
Why Choose Degiro?
Degiro offers a strong mix of affordable fees, easy-to-use tools, and broad market access. If you’re looking for cheap stock trading without sacrificing functionality, Degiro is a solid choice.
By keeping things simple and low-cost, Degiro has earned its reputation as a favorite among dividend investors and retail traders alike.
3. Fee Structure
When choosing a broker, fees are a big deal, especially for long-term investors focused on dividends. In this Degiro review, I’ll break down the costs of using a Degiro account to see if Degiro lives up to its promise of being a low-cost option for dividend investors.
Low Trading Fees and Transaction Costs
Degiro stands out for its low trading fees, making it a great choice for both retail traders and long-term investors. Whether you’re trading individual stocks, exchange-traded funds (ETFs), or investment funds, Degiro offers some of the most competitive fees compared to other brokers.
For example, trading on major stock exchanges like the New York Stock Exchange comes with very low transaction fees, which is perfect for those looking for cheap stock trading.
Other Costs to Keep in Mind
Degiro doesn’t charge inactivity fees, which is great if you like a hands-off investing style. However, there are some costs to watch out for:
Custody Fees: There is no custody fees but if you choose the custody account, you can expect fees on dividend and coupon processing ( see section 2). On the plus side, your security will not be lent out.
Currency Conversion Fees: If you trade stocks on foreign markets, you’ll pay a small fee to convert your money (0.25% fee).
Comparison with Other Brokers
Degiro keeps costs low compared to many of its competitors, especially for retail investors focused on the stock market. When funding your account, you’ll need to deposit money from a bank account in your name.
In summary, Degiro is a top pick for low-cost investing, especially for retail traders and long-term investors. But keep an eye on extra charges like currency conversion fees and extra fees on custody account. Knowing these costs will help you make the most of your investment account and keep your expenses low.
4. Pros and Cons for Dividend Investors
When choosing a broker, it’s important to look at both the good and the bad. Here’s what Degiro offers for dividend investors this year:
Pros:
Low Trading Fees
Degiro is a great option for long-term investors because of its low costs. Compared to other brokers, Degiro charges very competitive fees. This is especially true for trading on popular stock exchanges.Access to Global Markets
With Degiro, you can trade on many financial markets worldwide. This includes markets that feature strong dividend-paying stocks. You’ll have plenty of choices, whether you’re trading individual stocks, exchange-traded funds (ETFs), or investment funds. This makes it easier to build a diverse portfolio.Easy-to-use Platforms
Degiro’s mobile app and desktop platform are simple to use, even for beginners. For experienced investors, Degiro provides tools for technical and fundamental analysis, as well as detailed financial reports. These features make it easier to research and manage dividend-paying stocks
Cons:
Currency Conversion Fees
One downside is the ccy conversion fees. If you invest in dividend stocks traded in foreign currencies, these fees can add up and reduce your overall earnings.(0.25% fee)No Dividend Reinvestment Plans (DRIPs)
Degiro doesn’t offer DRIP options. This means you’ll need to manually reinvest your dividends, which can be less convenient if you’re aiming for compound growth.Custody Account Fees
If you use a Degiro Custody account, there are extra fees for dividend processing. Make sure to check the fee structure for all account types to see what fits your needs best.
Degiro is an excellent broker for low-cost investing, especially for dividend investors. However, knowing these drawbacks can help you plan smarter and make the most of your investments.
5. Security and Regulation
When choosing a broker, especially for long-term plans like dividend investing, security should be a top priority. This section of my Degiro Broker Review 2024 breaks down how Degiro keeps your investments safe and follows the rules.
How Safe Is Degiro?
Degiro is supervised by the Dutch Central Bank, the AFM (Authority for Financial Markets) and the German Financial authority. (BaFin) These organizations make sure Degiro plays by the rules, making it a reliable choice for both professional investors and retail traders.
To protect your funds, Degiro is also part of the German Investor Compensation Scheme, which protects up to €20,000 if the broker goes bankrupt. This adds an extra layer of security, which is especially important for long-term investors and dividend-focused traders
How Does Degiro Protect Your Money?
Degiro keeps your funds in separate accounts, which means your money is not mixed with the broker’s own funds. This makes your investment account safer in case something goes wrong.
Therefore, its rules and systems are designed to reduce risks. If you’re investing in individual stocks, exchange-traded funds, or investment funds, you can feel confident that your assets are being properly managed.
Securities Lending: What You Need to Know
Degiro does practice securities lending, which means your shares might be loaned to other traders. For cautious investors, this could be a concern. If you don’t want your shares to be lent out, you can choose a custody account, though this comes with additional fees.
Why Security Matters for Dividend Investors
Whether you’re trading on main stock exchanges or exploring financial markets worldwide, Degiro stands out for its transparency. It offers clear financial reports and reliable customer service to help you stay informed.
Even though all investing involves some risk, Degiro’s strong regulations and low fees make it a secure choice for those looking to access global stock markets and grow their portfolio through dividend investing.
6. Customer Support
When picking a broker for dividend investing, customer support is an important factor. In this Degiro broker review for 2024, I’ll break down how Degiro’s customer service works for retail investors and those focused on long-term dividend strategies.
Availability and Support Options
Degiro offers financial reports and detailed guides on its platform, which are helpful for addressing common questions. However, live customer support is limited to email and phone. Unfortunately, there is no chat option, which could be a downside for investors seeking immediate assistance. For queries about investing/trading, responses via email can sometimes take a day or more.
Language Support and Regional Specificity
Degiro offers support in multiple languages, which is great for its diverse users. For European investors, especially those covered by the German Investor Compensation Scheme, Degiro’s support works well with local rules. This makes it easier to get clear answers about your fees or stock investing.
Transparency and Educational Tools
While Degiro doesn’t offer 24/7 support, it does provide a lot of educational resources. You can find guides on trading instruments, major stock exchanges and how to manage your investment account. These resources are especially useful for solving basic issues, like transferring money or understanding trading fees.
Final Thoughts on Customer Support
Degiro’s customer support gets the job done but isn’t ideal for day traders or professional investors who need instant help. For long-term investors focusing on individual stocks or exchange-traded funds, the email support and educational tools are usually enough.
That said, compared to other brokers, Degiro could improve its support by adding faster and more accessible options.
Based on customer feedback, DEGIRO achieves a solid 4.2-star rating on Trustpilot, reflecting a great level of customer satisfaction. While clients appreciate its affordability and educational resources, some suggest improvements in real-time customer support.
7. Mobile Trading App
In today’s fast-moving world, being able to manage your investments anytime, anywhere is a game changer. The DEGIRO mobile app makes this easy, giving you instant access to your investment account and a wide range of financial products right from your phone. Built with convenience in mind, it helps you stay connected to the stock market and make smart choices quickly..
Features That Make Investing Easy
The DEGIRO mobile app is packed with tools for both beginners and experienced investors. Here are some key features:
- Real-time market data and charts: Stay up-to-date with market trends and make better trading decisions.
- Wide range of investments: Trade stocks, ETFs, options, and more directly from your phone.
- Portfolio management: View your investments, track performance, and buy or sell with just a few taps.
- Watchlists and alerts: Follow your favorite stocks and get notifications about price changes and important updates.
- Secure login with two-factor authentication: Keep your account safe with strong security features.
The app’s simple design makes it easy to find what you need, so you can focus on trading instead of navigating a complicated interface.
Compatibility and User Experience
The DEGIRO app works on both iPhones and Android phones, so anyone can use it. You can download it from the App Store or Google Play and start trading right away. Even if your internet connection isn’t the best, the app still runs smoothly, so you can manage your money no matter where you are.
Overall, If you want to stay connected to your investments while on the move, this app is a great choice. Its easy-to-use design, helpful features, and secure login make it ideal for managing your investments from your phone. Whether you’re a beginner or a pro, DEGIRO’s mobile app has the tools you need to succeed in the financial markets.
8. Who Should Use Degiro?
Degiro is a platform that fits a wide range of investors, but it’s especially appealing for those who prioritize low-cost investing. Let’s look at who might benefit most from using Degiro in 2024.
For Beginners
If you’re just starting out with investing, Degiro offers an easy and affordable way to build your portfolio. With its low trading fees and no minimum deposit requirement, opening a basic account is simple.
You’ll have access to many stock exchanges, including the London Stock Exchange, where you can trade individual stocks or exchange-traded funds (ETFs). However, keep in mind that investing always involves some level of risk. It’s important to learn how dividends and capital gains work before jumping in.
For Experienced Dividend Investors
If you’re a more experienced investor focused on dividends, Degiro offers a lot to like. The platform has competitive fees and gives you access to global financial markets. You can trade dividend-focused investment funds and ETFs while keeping transaction costs lower than with many other brokers.
However, be aware of currency conversion fees if you’re dealing with investments in foreign currencies. For investors who rely on analysis, Degiro provides tools for both technical and fundamental analysis, along with access to financial reports. These features make it easier to make informed decisions..
Things to keep in mind
Degiro has a lot of advantages, but it’s not perfect. Some account types, like the Degiro custody account, comes with extra fees.
Even with these downsides, Degiro’s low fees and broad market access make it a great choice for long-term investors and active traders alike.
9. Verdict: Is Degiro the Best Choice for Dividend Investors in 2024?
Degiro has become a popular choice for low-cost investing, especially for dividend investors. But is it the best option in 2024? Let’s break it down.
One of Degiro’s biggest advantages is its low fees. The platform has low trading fees, no inactivity fees, and a clear fee structure. This makes it appealing to both retail traders and long-term investors who want to keep costs down. Degiro also provides access to many financial markets, including major stock exchanges like the Euronext stock exchange. This allows you to trade individual stocks, exchange-traded funds (ETFs), and investment funds. However, if you’re buying foreign stocks, keep in mind that Degiro charges currency conversion fees, which can add up.
For dividend investors, Degiro’s custody fees depend on the account type. A default account may involve securities lending, which some investors might find risky. The degiro platform lacks built-in tools for technical and fundamental analysis, which could be a drawback for users needing advanced data to track cash flow or analyze financial instruments.
Degiro’s customer support is decent but has room for improvement. It’s available through email and phone, which might not be ideal if you prefer quicker, real-time help like through a chat.
If you’re looking for low fees and easy access to global markets, Degiro is a solid option. But if you need features like DRIPs (Dividend Reinvestment Plans) or advanced analysis tools, another broker might be a better fit.
In summary, Degiro is a great choice for retail investors focused on low-cost trading. Just remember, investing always involves risk, so choose the platform that best fits your needs.
Conclusion
I’d love to hear from you! Have you used Degiro for stock trading or dividend investing? If so, share your experience in the comments below. Your thoughts could help other investors decide if Degiro is the right choice for them.
Thinking about trying Degiro? It’s one of the most affordable brokers out there. You can trade stocks with low fees, enjoy an easy-to-use platform, and access stock markets worldwide, including the EU Stock Exchanges and other major exchanges.
However, keep in mind that Degiro charges fees like transaction costs and currency conversion fees. These depend on the account type you choose. For example, a basic account has different fees compared to a custody account, which doesn’t allow securities lending.
Want to learn more? Check out these helpful posts:
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- “How to Choose a Stock Broker ? Essential Tips to Invest Wisely“ to see which criteria you should check to choose a broker.
- “Interactive Brokers Review 2024: Is It the Best Online Broker for You?“ to look at my IBKR broker review.
- Is Saxo Bank the Right Broker for Long-Term Investors? To look at my Saxobank broker review.
- Trading 212 Broker Review 2024: Key Insights and Considerations To look at my Trading 212 broker review.
- My Comprehensive eToro Broker Review: Features, Pros & Cons Explained To look at my eToro broker review
Remember, all investing comes with risk. While Degiro offers low costs and tools like financial reports for individual stocks and exchange-traded funds, you should still analyze your investments carefully. Make sure the platform fits your long-term goals before transferring money or paying fees.
Ready to get started? Click the following link to open a Degiro account and explore the features it offers for dividend investors!