A New (Ridiculously Cheap!) Broker In Town

While surfin’ the internet I came across some tool in order to compare brokers. I filled in a couple of things and my number one was DEGIRO. Never heard of them before. Apparently, a couple of former BinckBank employees established this broker platform in 2008 for corporate investors. Because they were convinced costs could easily be lowered.

In september 2013 they launched a website for individual investors. They seem to be the cheapest broker out there. Their fees are up to 80% cheaper compared to my current broker. They don’t charge any fees other than transaction fees which are ridiculously cheap. Also, there’s no minimum.

It seems rather easy to open an account here. Within five minutes you can start trading.

Sounds rather tempting, doesn’t it? It seems they started this price war between online brokers.

What do you guys think?

Love,

Mrs EconoWiser

Addendum:

I have just openend an account with them. That was easy! I also phoned them. The scariest thing here is that they will lend your stocks to third parties. Is this also the case with BinckBank? Also, they don’t have a bank license…

When investing in dollars it is important to note that they don’t hold dollar accounts yet. So all dollar purchases are immediately converted into euros. They won’t help you with the W-8BEN form.

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16 thoughts on “A New (Ridiculously Cheap!) Broker In Town

  1. a Mustachian

    That does sound very good. Thanks for the tip! I wonder what they mean by this though:

    “Opzetten handelsmogelijkheden €2,50 (max 0.25% port) per jaar”

    Apparently it doesn’t apply to Euronext Amsterdam, so I guess I don’t have to worry about it with my Think and Vanguard ETFs?

    Reply
      1. a Mustachian

        On further reflection, I think I’ll abstain from investing through De Giro. Their general terms and conditions are beyond unreasonable. They think I’ll agree to them lending out my securities for their benefit but fully at my risk? I think not!

      1. Xabier

        Yeehah!
        I’ve contacted Degiro and it’s possible to open an account with them from Spain.
        I wait only 2-3 months to have their webpage translated into English!
        Cheers

  2. Bas

    I think you should you should use DeGiro only for trades instead of investments. With short term trades, transaction costs should be low to make a quick profit. I wouldn’t transfer your buy and hold portfolio to them, just trade and make sure you don’t have to much money with them.

    Reply
  3. michael

    The broker is extremely unfriendly in accepting money via banks, it takes so long to find the right bank so their back office that is extremely unprofessional to find the right information for the IBAN in order to confirm the opening of the account, i have already used 2 banks and i am still waiting…i have not seen a broker that you are sending money and is unable to accept them…bad…VERY BAD

    Reply
  4. Sam

    Hi

    Any new developments? I believe DeGiro now has W-8BEN. And a dollar account? I am not sure. The security lending is still the case

    Mrs Econowiser, which broker to you use for your buy-and-hold ETFs?

    Reply

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