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Degiro

  • 13-03-2020 12:20am
    #1
    Registered Users Posts: 92 ✭✭ Rainmann


    Quick questions guys.


    How safe is putting a significant amount of money into Degiro? Is your money safe in there? Over the coming months, I expect to deposit a lot more to start buying up some shares I have my eye on. Thanks!


Comments

  • Registered Users Posts: 170 ✭✭ lion_bar


    Does Degiro accept Euro deposits?

    It says on screen it only takes GBP but find that odd for a Dutch co.?


  • Registered Users Posts: 1,454 ✭✭✭ TripleAce


    Did Degiro change banking information the past couple of years? I made a deposit a few days ago and it bounced back into my bank account :(


  • Registered Users Posts: 12,274 ✭✭✭✭ y0ssar1an22


    TripleAce wrote: »
    Did Degiro change banking information the past couple of years? I made a deposit a few days ago and it bounced back into my bank account :(

    It has yes. When you go to deposit on the website it gives you the new details


  • Registered Users Posts: 1,454 ✭✭✭ TripleAce


    It has yes. When you go to deposit on the website it gives you the new details

    Thank you, much appreciated.


  • Registered Users Posts: 1,273 ✭✭✭ august12


    lion_bar wrote: »
    Does Degiro accept Euro deposits?

    It says on screen it only takes GBP but find that odd for a Dutch co.?
    Yes it does. Maybe depends which country you registered with.


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  • Registered Users Posts: 1,273 ✭✭✭ august12


    Rainmann wrote: »
    Quick questions guys.


    How safe is putting a significant amount of money into Degiro? Is your money safe in there? Over the coming months, I expect to deposit a lot more to start buying up some shares I have my eye on. Thanks!
    Can't really answer your question but I'm registered since 2016 and never had an issue.


  • Registered Users Posts: 13 John_100


    Does anyone know why Degiro stopped posting on boards.ie and why their thread is locked?
    Thx


  • Registered Users Posts: 13 John_100


    Rainmann wrote: »
    Quick questions guys.


    How safe is putting a significant amount of money into Degiro? Is your money safe in there? Over the coming months, I expect to deposit a lot more to start buying up some shares I have my eye on. Thanks!

    As safe as you can get. Do not put in anymore than €20k per account (exact figure on their website) as the Dutch Guarantee Scheme only covers this amount per account.

    Their new platform is much better, but still a bit behind other available platforms.

    However, in the present climate I would be opening an account with them asap.

    I have an account opened a few years now, never really used it, but will be lodging money in the coming weeks.

    Their options and futures commissions are very reasonable. The Irish Exchange incurs stamp duty for AIB or BOI shares, but I assume the London Exchange does not.

    Options on the Europe 50 looks ok, but have to have closer look at specs.

    Overall, you won't get much better at the moment, as far as I can see, as even their data fees are very cheap per traded market.


  • Registered Users Posts: 689 ✭✭✭ jams100


    John_100 wrote: »

    Overall, you won't get much better at the moment, as far as I can see, as even their data fees are very cheap per traded market.

    Has anyone tried revolut? I know they only sell American stocks but still seems like theres few fees/commission. New to trading myself so just looking around at the moment


  • Registered Users Posts: 13 John_100


    jams100 wrote: »
    Has anyone tried revolut? I know they only sell American stocks but still seems like theres few fees/commission. New to trading myself so just looking around at the moment

    Forget about Revolut for trading, as it is one of the worst I have ever seen.

    I recently started using Revolut, brilliant for paying Amazon or Ebay. Set up trading account to have a look at it, but it is useless.

    Revolut itself might be a cheap way to trade FX if you pay the 7.99 monthly fee, or the higher fee might be needed depending on how frequent the FX trading is.

    You will not get much better than Degiro at the moment. I have an IB account for trading my pension, but with pension account you are classified as a professional - wow, imagine that :) - but the professional date fees are enormous, so I don't use IB live data feeds.

    As I am currently trading Crude Mini Futures and MES (micro ES Futures) I have a way to get free US Futures live data feed and charts, and just place the trades with IB TWS or TWS App.

    Believe me when I say you will not get much better than Degiro at the moment. I have been with IG Index, City Index and other Spread Betting Companies, and they lock you out of trading when volatility spikes, like recently.

    If you are going to risk money trading, then you should at least make sure you have Direct Access to the markets so you can get out when you have to!!


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  • Registered Users Posts: 198 ✭✭ Earnshaw


    How good is degiro in this scenario: invest €1000 in companies. For 10 years.

    I'm wondering about the length of time mostly - will degiro still be in existence in 10 years!

    Apps can often just fizzle out in short timescales.


  • Registered Users Posts: 3,507 ✭✭✭ dotsman


    Earnshaw wrote: »
    How good is degiro in this scenario: invest €1000 in companies. For 10 years.
    That's degiro's bread and butter.
    Earnshaw wrote: »
    I'm wondering about the length of time mostly - will degiro still be in existence in 10 years!

    Apps can often just fizzle out in short timescales.

    Degiro is not an "app". They are a legitimate stockbrokers. Founded and based in the Netherlands, they are regulated there. That makes them as safe as any stockbroker.


  • Registered Users Posts: 1,008 ✭✭✭ 1123heavy


    I was given my ticket number of 9380 3 days ago when I signed up to degiro, they said due to a surge in applicants I have to wait. I am still at that number in the queue and have not moved 1 place in 3 days, does this sound right?

    Am I better just trying another broker/platform?


  • Registered Users Posts: 15,817 ✭✭✭✭ Mantis Toboggan


    1123heavy wrote: »
    I was given my ticket number of 9380 3 days ago when I signed up to degiro, they said due to a surge in applicants I have to wait. I am still at that number in the queue and have not moved 1 place in 3 days, does this sound right?

    Am I better just trying another broker/platform?

    Think due to Covid they've made big cutbacks on staff and aren't even looking at new customers until the middle of next week.


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  • Registered Users Posts: 1,008 ✭✭✭ 1123heavy


    Think due to Covid they've made big cutbacks on staff and aren't even looking at new customers until the middle of next week.

    That's odd, I'd have thought all this could be done remotely


  • Registered Users Posts: 689 ✭✭✭ jams100


    1123heavy wrote: »
    I was given my ticket number of 9380 3 days ago when I signed up to degiro, they said due to a surge in applicants I have to wait. I am still at that number in the queue and have not moved 1 place in 3 days, does this sound right?

    Am I better just trying another broker/platform?

    I signed up 4 or 5 weeks ago they didn't have a waiting list when I registered but I got an email a few days later to say there would be a wait due to lack of staff etc, etc.

    I registered on the 17th March and was verified on the 1st April. So 15 days
    Maybe the waiting list is longer now?


  • Registered Users Posts: 71 ✭✭✭ NickSantigo


    How safe is your money on Degiro?
    I know 20K is guaranteed by the Dutch Central Bank however I was wondering is that cash only or cash & Stocks/etfs?


  • Registered Users Posts: 871 voluntary


    Degiro offers two types of accounts. Custodian and non-custodian. The majority of retail small investors go for non-custodian account as the fees are lower, but that also means that you let Degiro operate with your investment (less safe) and they will use it to make their own profits (lend shares etc). Custodian account means you own the securities, they just hold it for your. Non custodian may mean trouble if they make some really bad trade.


  • Registered Users Posts: 71 ✭✭✭ NickSantigo


    voluntary wrote: »
    Degiro offers two types of accounts. Custodian and non-custodian. The majority of retail small investors go for non-custodian account as the fees are lower, but that also means that you let Degiro operate with your investment (less safe) and they will use it to make their own profits (lend shares etc). Custodian account means you own the securities, they just hold it for your. Non custodian may mean trouble if they make some really bad trade.

    Thank you for the reply. I have a Custodian account so that is good to know. So am I right in saying all cash separate to stocks is safe up to 20k then?


  • Registered Users Posts: 92 ✭✭ Rainmann


    I have over 20k in my account so that was the initial reasoning for my question.

    Found the below on the Degiro site. I suppose this gives some peace of mind.

    All assets within the Money Market Funds are held separately from the fund issuer and therefore do not run any risk in the event of bankruptcy of DEGIRO or the issuer. For more information about Money Market Funds you can click here.


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  • Registered Users Posts: 198 ✭✭ Earnshaw


    Rainmann wrote: »
    I have over 20k in my account so that was the initial reasoning for my question.

    Found the below on the Degiro site. I suppose this gives some peace of mind.

    All assets within the Money Market Funds are held separately from the fund issuer and therefore do not run any risk in the event of bankruptcy of DEGIRO or the issuer. For more information about Money Market Funds you can click here.

    How do you get your 20k out of the money market funds if degiro goes to the wall?


  • Moderators, Business & Finance Moderators Posts: 7,837 Mod ✭✭✭✭ Jim2007


    Earnshaw wrote: »
    How do you get your 20k out of the money market funds if degiro goes to the wall?


    You apply to have the fund certificates returned to you...


  • Banned (with Prison Access) Posts: 79 ✭✭✭ ChuckieEgg


    So to be clear,
    If you have a basic account when you buy shares in a company you don't really own any shares in that company? So if degiro goes wallop then it's bye bye to your so called shares too?


  • Registered Users Posts: 92 ✭✭ Rainmann


    At DEGIRO you can rest assured that your investments are held securely. DEGIRO uses a separate legal entity (SPV) to hold your assets. This means they are held separate from the assets of DEGIRO. The sole task of this entity is to administer and safeguard your investments. By law, it cannot perform any commercial activities. In the event that something would happen to DEGIRO, your investments will not be treated as recoverable assets to DEGIRO's creditors and will remain in the safekeeping of the separate entity.

    Degiro don't hold the assest so if the go out of business, we should be ok..


  • Moderators, Business & Finance Moderators Posts: 7,837 Mod ✭✭✭✭ Jim2007


    Rainmann wrote: »
    At DEGIRO you can rest assured that your investments are held securely. DEGIRO uses a separate legal entity (SPV) to hold your assets. This means they are held separate from the assets of DEGIRO. The sole task of this entity is to administer and safeguard your investments. By law, it cannot perform any commercial activities. In the event that something would happen to DEGIRO, your investments will not be treated as recoverable assets to DEGIRO's creditors and will remain in the safekeeping of the separate entity.

    Degiro don't hold the assest so if the go out of business, we should be ok..

    From previous discussion it seems not as clear cut as you suggest. First of all it does not matter who holds the certificates, even If they get lost they can be reissued.

    The obligation on a liquidator is that he must release assets that are clearly identifiable as being belonging to you, all others become the common pool for all creditors.

    Apparently some types of low fee accounts include a mechanism by which securities are pooled for the purposes of securities lending. In such a case securities are not clearly identifiable as the property of a particular client and such claims will rank with the other creditors.


  • Registered Users Posts: 92 ✭✭ Rainmann


    Jim2007 wrote: »
    From previous discussion it seems not as clear cut as you suggest. First of all it does not matter who holds the certificates, even If they get lost they can be reissued.

    The obligation on a liquidator is that he must release assets that are clearly identifiable as being belonging to you, all others become the common pool for all creditors.

    Apparently some types of low fee accounts include a mechanism by which securities are pooled for the purposes of securities lending. In such a case securities are not clearly identifiable as the property of a particular client and such claims will rank with the other creditors.

    Thanks, understood. I did a little more research and while most people seem to think you should be ok with Basic account even if Degiro went bankrupt, there is still an added risk. There is no way to change your Basic account to a Custody account, however, it is possible to set up a second account using the same details and a seperate username. It also appears to be possible to transfer shares between accounts for a small fee. For me this looks to be the best way forward to have the best of both worlds but to limit risk too.


  • Registered Users Posts: 97 ✭✭ kennedmc


    Jim2007 wrote: »
    From previous discussion it seems not as clear cut as you suggest. First of all it does not matter who holds the certificates, even If they get lost they can be reissued.

    The obligation on a liquidator is that he must release assets that are clearly identifiable as being belonging to you, all others become the common pool for all creditors.

    Thanks folks. Struggling to get my head anound this! E.g. I have a DeGiro custody account with 50K portfolio and 25K cash in it

    If DEgiro go into liquidation:
    a) I get 20K back as that is max covered by Dutch regulator
    b I get 20K cash back but my portfolio is safe as I have a custody account (and I own the shares)
    My understanding is that is 'b' - am I correct?


  • Registered Users Posts: 92 ✭✭ Rainmann


    kennedmc wrote: »
    Thanks folks. Struggling to get my head anound this! E.g. I have a DeGiro custody account with 50K portfolio and 25K cash in it

    If DEgiro go into liquidation:
    a) I get 20K back as that is max covered by Dutch regulator
    b I get 20K cash back but my portfolio is safe as I have a custody account (and I own the shares)
    My understanding is that is 'b' - am I correct?

    The way I understand it now is that 20K is safe in your account if it's held in 'cash'. If you have your shares in the custody account you are even if Degiro go bust as your shares will not be lend out to short sellers, they will be held elsewhere. However, with the basic accounts some or all of your shares could be lend out to short sells. Because of this, if Degiro goes bust a liquidator might make an argument that these shares be used for all creditors thus putting you at risk. I found a couple of different threads online and each stated that if Degiro went bust in each case you'd likely be fine but if you want to be on safe side use the custody. I know have one of each and am currently migrating some of my shares over.


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