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  • What Is an ETF? A European Investor’s Guide for 2026

    What is an ETF? An ETF (exchange-traded fund) is a basket of investments that trades on the stock exchange like a single stock. You buy one share and own a slice of dozens, hundreds, or thousands of companies. If you invest from Europe, though, there is more to know than most beginner guides cover: UCITS rules, accumulating versus distributing structures, synthetic replication, and how to decode those long, confusing fund names.

    Key Takeaways

    • An ETF is a fund that tracks an index (like the S&P 500 or MSCI World) and trades on a stock exchange. You buy and sell it through your broker, the same way you would a stock.
    • European investors must buy UCITS ETFs: funds that comply with EU investor protection rules. You cannot buy US-domiciled ETFs (like SPY or VOO) due to the PRIIPs regulation.
    • The choice between accumulating and distributing ETFs matters for taxes. Accumulating ETFs reinvest dividends automatically; distributing ETFs pay them out as cash. In most European countries, accumulating is more tax-efficient.
    • ETFs cost a fraction of what active funds charge. A typical UCITS index ETF charges 0.07%–0.25% per year. The average actively managed European fund charges 1.5%–2.0%. Over 30 years, that difference compounds into tens of thousands of euros.
    • You can start buying ETFs from a European brokerage account with as little as €1 (fractional shares) or around €50–100 for a full share of most broad index ETFs.

    How an ETF Works

    Think of an ETF as a container. Inside the container sit the actual investments: stocks, bonds, commodities, or a mix. The container itself is listed on a stock exchange with its own ticker symbol and price. You can buy or sell it anytime the exchange is open.

    Most ETFs are index funds. They do not try to pick winners. Instead, they copy a specific index, a predefined list of companies weighted by market capitalisation. The MSCI World index, for example, contains around 1,300 companies from 23 developed countries. An ETF tracking the MSCI World holds shares in all of those companies in the same proportions. When the index changes its composition, the ETF adjusts automatically.

    This is different from an actively managed fund, where a fund manager decides what to buy and sell. The manager charges higher fees for this service. The track record is poor: the S&P SPIVA Europe scorecard shows that over 15 years, more than 70% of active European equity funds fail to beat their benchmark index. ETFs remove the fund manager and the fees that come with them.

    The creation and redemption mechanism

    Large institutional players called Authorised Participants (APs) can create new ETF shares by delivering baskets of the underlying stocks to the fund provider, or redeem ETF shares in exchange for those stocks. This arbitrage mechanism keeps the ETF’s market price aligned with the value of its holdings (the net asset value, or NAV). When the ETF price drifts above NAV, APs create new shares and push the price down. When it drops below, they redeem shares and push it up. The practical effect: you pay close to fair value for an ETF at any given moment.

    Why European Investors Must Buy UCITS ETFs

    If you are based in the EU or EEA, you need to know one acronym: UCITS. It stands for Undertakings for Collective Investment in Transferable Securities, which is as opaque as it sounds. In practice, UCITS is the EU’s regulatory framework for investment funds sold to retail investors. It sets rules on diversification, transparency, and investor protection.

    A UCITS ETF must:

    • Publish a Key Information Document (KID) in the local language of each country where it is sold
    • Limit single-stock exposure to no more than 10% of the fund, and all positions above 5% combined cannot exceed 40%
    • Hold fund assets separately from the provider’s own assets (so if iShares or Vanguard went bankrupt, your money in the ETF would be ring-fenced)
    • Report regularly on holdings, costs, and performance

    The EU’s PRIIPs regulation requires that any “packaged” investment product sold to retail investors comes with a KID. US-domiciled ETFs (like SPY, VOO, or QQQ) do not produce KIDs. European brokers are legally required to block you from buying them.

    Every major US index has a UCITS equivalent. The S&P 500 has the iShares Core S&P 500 UCITS ETF (CSPX) and the Vanguard S&P 500 UCITS ETF (VUAA). The NASDAQ-100 has the iShares NASDAQ 100 UCITS ETF (CNDX). For global exposure, there is the Vanguard FTSE All-World UCITS ETF (VWCE). These funds are domiciled in Ireland or Luxembourg, comply with all EU rules, and trade on European exchanges like Xetra, Euronext, and Borsa Italiana.

    Our guide on how to buy US stocks in Europe covers this distinction further, including why individual US stocks are not affected by PRIIPs.

    Accumulating vs Distributing ETFs

    This is the most European-specific decision you will make as an ETF investor. Most global guides skip it because it barely matters in the US.

    When companies inside an ETF pay dividends, the fund collects them. What happens next depends on the ETF structure:

    • Distributing ETFs (sometimes marked “Dist” or “D”) pay those dividends out to you as cash, typically quarterly or semi-annually. You see the money arrive in your brokerage account.
    • Accumulating ETFs (marked “Acc” or “C”) reinvest the dividends back into the fund automatically. No cash hits your account. Instead, the ETF’s share price grows slightly faster because the dividends are compounding inside the fund.

    The reason this matters is taxation.

    In most European countries, dividends paid out to you are taxed as income in the year you receive them. If you hold a distributing ETF that pays €500 in dividends and your country taxes dividends at 26% (Italy), 30% (Belgium, France via the PFU), or 26.375% (Germany including Solidaritätszuschlag), you owe that tax immediately. Even if you plan to reinvest the dividends yourself, you pay tax first, then reinvest what is left.

    An accumulating ETF avoids this drag in most countries. The dividends never reach you. They stay inside the fund. You only face tax when you eventually sell your shares, and that is typically taxed as a capital gain, which may carry a lower rate or qualify for exemptions depending on your country and how long you held.

    There are exceptions. Germany applies a Vorabpauschale (advance lump sum) to accumulating funds, creating a small annual tax even without distributions. Belgium as of January 2026 taxes capital gains on financial assets at 10% above a €10,000 annual exemption. But the general principle holds: accumulating ETFs offer tax deferral, which means more of your money compounds for longer.

    Our view: If you are investing for the long term (10+ years) and do not need dividend income now, choose accumulating. If you want regular cash flow, perhaps in retirement, distributing makes sense. Check your country’s specific tax treatment before deciding.

    Physical vs Synthetic Replication

    An ETF can hold the investments it tracks in two ways.

    Physical replication (also called “direct” replication): The ETF buys and holds the actual stocks or bonds in the index. A physically replicated S&P 500 ETF owns shares of Apple, Microsoft, Amazon, and every other company in the index. Most large ETFs use this method. A variant called optimised sampling holds a representative subset of the index (useful when the full index has thousands of tiny positions).

    Synthetic replication: The ETF does not hold the underlying stocks directly. Instead, it enters into a swap agreement with a counterparty bank. The bank promises to deliver the index return, and the ETF holds a basket of collateral. This introduces counterparty risk: if the swap counterparty defaults, the ETF relies on its collateral. UCITS rules limit uncollaterlised swap exposure to 10% of NAV.

    When does synthetic make sense? For hard-to-access markets, for certain commodity exposures, or when it can reduce tracking error and withholding tax drag. Some synthetic ETFs on US indices achieve better after-tax returns than physical ones because the swap structure avoids the 15% US dividend withholding tax that even Irish-domiciled physical ETFs pay at the fund level.

    For most European beginners: physical replication is the default choice. It is simpler, more transparent, and the counterparty risk question does not apply. Look at synthetic only if you understand why it might deliver a better net return for your specific situation.

    How to Read an ETF Name

    ETF names look like alphabet soup. They follow a pattern, though. Take a real example:

    iShares Core MSCI World UCITS ETF USD (Acc)

    • iShares — the provider (BlackRock’s ETF brand)
    • Core — the product line (iShares uses “Core” for its cheapest, broadest funds)
    • MSCI World — the index the ETF tracks
    • UCITS — confirms compliance with EU regulation
    • ETF — it is an exchange-traded fund
    • USD — the fund currency (the currency in which the fund’s NAV is calculated, not necessarily the currency you buy it in)
    • (Acc) — accumulating structure (dividends reinvested)

    What is an ETF: IBKR mobile app showing VWCE ETF quote on Xetra with ticker, price, and bid-ask spread

    VWCE on IBKR’s mobile app. The header reads “VWCE IBIS2” — that tells you the ticker (VWCE) and the exchange (IBIS2, which is Xetra). Below: price, bid-ask spread, and key stats.

    The same ETF might trade on multiple exchanges under different tickers: IWDA on Euronext Amsterdam (in USD), SWDA on London Stock Exchange (in USD), EUNL on Xetra (in EUR). These are all the same fund. You are choosing which exchange and currency to trade in. The underlying holdings are identical.

    Every UCITS ETF also has an ISIN (International Securities Identification Number) that uniquely identifies it regardless of exchange or ticker. For the fund above, the ISIN is IE00B4L5Y983. When you are comparing ETFs, the ISIN removes all ambiguity.

    What an ETF Costs

    ETF costs come in layers. Knowing them prevents surprises.

    TER (Total Expense Ratio)

    The TER is the annual fee the fund charges, expressed as a percentage of your investment. It is deducted automatically from the fund’s value. You never see a bill. A broad MSCI World UCITS ETF typically charges 0.10%–0.20% per year. An S&P 500 UCITS ETF can be as low as 0.03%–0.07%. Compare this to the average European actively managed equity fund at 1.5%–2.0%.

    To put this in euros: on a €10,000 investment, a 0.12% TER costs you €12 per year. A 1.5% active fund fee costs €150. Over 30 years with compounding, that gap grows to tens of thousands of euros on a six-figure portfolio.

    Tracking difference

    The TER does not tell the full cost story. Tracking difference measures the actual gap between the ETF’s return and the index’s return over a given period. An ETF with a 0.20% TER might have a tracking difference of only 0.10% (because it earns revenue from securities lending) or 0.30% (because of transaction costs and withholding taxes). Tracking difference is the more honest cost measure, and you can find it on fund factsheets or on justETF or trackingdifferences.com.

    Trading costs

    These are broker fees, not fund fees. Every time you buy or sell an ETF, you pay a commission to your broker (anywhere from €0 to €3 depending on the broker and platform) plus a bid-ask spread (the small gap between the buy and sell price). For large, liquid ETFs like VWCE or CSPX, the spread is small, often 0.01%–0.05%. For niche or small ETFs, the spread can be wider.

    We compared broker costs in detail in our best brokers for European investors guide.

    Types of ETFs

    Not every ETF is a broad stock market index fund. The main categories break down as follows.

    Equity index ETFs (the core)

    The most popular for European investors track MSCI World (developed markets), FTSE All-World (developed + emerging), S&P 500 (US large cap), and MSCI Emerging Markets. If you are building a simple long-term portfolio, one or two of these form the backbone.

    Bond ETFs

    Bond ETFs hold government bonds, corporate bonds, or a mix. They add stability and income to a portfolio. European investors often look for euro-hedged versions to avoid currency risk, or euro-denominated government bond ETFs.

    Thematic and sector ETFs

    Sector and thematic ETFs target specific areas (technology, healthcare, clean energy) or investment themes (artificial intelligence, cybersecurity, ageing population). They concentrate your bets, and costs tend to be higher: 0.30%–0.65% TER is common. Useful as satellite positions, not as your core.

    Dividend ETFs

    Dividend ETFs track indices of high-dividend-paying companies. Popular in Europe for income-focused investors, but watch for the tax implications discussed in the accumulating vs distributing section above.

    Multi-asset ETFs

    Some ETFs combine stocks and bonds in a single fund, like the Vanguard LifeStrategy UCITS ETFs (available in 20/40/60/80% equity versions). These are one-fund portfolios that rebalance automatically.

    ETF vs Mutual Fund vs Stock: When to Use Each

    For most European investors building long-term wealth, ETFs are the default tool. Individual stocks are for people who want to actively research specific companies (we write stock reviews for those who do). Active mutual funds have lost ground to ETFs for years, and the data explains why.

    How to Buy Your First ETF in Europe

    Four steps, nothing complicated.

    1. Open a brokerage account

    You need a broker that gives you access to European exchanges (Xetra, Euronext, Borsa Italiana, etc.) where UCITS ETFs trade. The main options for European investors are Interactive Brokers, Degiro, Trade Republic, and Scalable Capital. We compared them all in our best brokers guide.

    2. Decide on your ETF

    For a first ETF, keep it simple. A single global equity index ETF gives you exposure to the entire developed world. The two most popular choices among European investors:

    • iShares Core MSCI World UCITS ETF (Acc) — ISIN: IE00B4L5Y983, TER: 0.20%, tracks ~1,300 companies in 23 developed countries
    • Vanguard FTSE All-World UCITS ETF (Acc) — ISIN: IE00BK5BQT80, TER: 0.19%, tracks ~4,200 companies in developed + emerging markets

    Both are accumulating, physically replicated, and domiciled in Ireland. Either one works as a core holding for a long-term portfolio.

    IBKR mobile app Fund Profile tab for VWCE showing Morningstar Silver rating and 4-star rating

    The Fund Profile tab for VWCE inside IBKR. Morningstar rates it Silver with 4 stars. You can check ratings like these before buying to compare funds.

    3. Place your order

    Search for the ETF by ISIN or ticker in your broker’s platform. Select the exchange you want to trade on (Xetra is the most liquid for many UCITS ETFs traded in EUR). Place a limit order at or near the current price. The trade settles in T+2 (two business days).

    Example: buying VWCE on Interactive Brokers. In the IBKR Client Portal or mobile app, type “VWCE” or the ISIN (IE00BK5BQT80) in the search bar. IBKR will show you multiple listings — pick the one on Xetra (IBIS2) if you want to trade in EUR. Click Trade, select Buy, enter the number of shares (or use the order value field for a euro amount). Set the order type to Limit, enter a price at or slightly above the current ask, and submit. IBKR charges 0.05% of the trade value on Xetra, with a minimum of €1.25 and a maximum of €29 — so a €5,000 ETF purchase costs you €2.50 in commission. The shares appear in your portfolio within seconds, and settlement completes in two business days. For a detailed walkthrough, see our IBKR review.

    IBKR mobile app showing VWCE ETF quote with live price chart on Xetra

    VWCE on IBKR, showing the live quote and price chart. The spread of 0.18 (0.128%) tells you this is a liquid ETF with tight trading costs.

    4. Automate if possible

    Several European brokers offer savings plans (Sparpläne in German) that automatically buy a fixed euro amount of your chosen ETF every month. Trade Republic and Scalable Capital offer these for free on many ETFs. Degiro offers a selection of commission-free ETFs. Automation removes emotion and builds the habit of consistent investing.

    Common Mistakes European ETF Investors Make

    Overcomplicating the portfolio

    You do not need 10 ETFs. A single global equity ETF covers over 1,300 companies across all sectors and geographies. Adding a second ETF for bonds or emerging markets is reasonable. Beyond that, every extra fund adds rebalancing work with diminishing diversification benefit. Many European investors hold one or two ETFs for their entire portfolio.

    Chasing past performance

    The thematic ETF that returned 40% last year might lose 30% next year. Broad indices are boring by design, and boring compounds well.

    Ignoring the tax implications of distributing ETFs

    Choosing a distributing ETF in a country with high dividend taxation means you lose a chunk of every dividend payment to tax, even if you reinvest. Check whether accumulating makes more sense in your tax jurisdiction before buying.

    Buying the wrong share class

    The same ETF can have an accumulating and a distributing version, an EUR-hedged and an unhedged version, and trade on multiple exchanges. Always verify the ISIN before you buy. The name alone is not enough. Two different ISINs can have very similar names but different structures.

    Trading too often

    ETFs trade like stocks, which makes it tempting to buy and sell based on market movements. Resist. Transaction costs, bid-ask spreads, and the tax events triggered by selling all eat into your returns. The optimal strategy for most people is to buy regularly and not sell for decades.

    Frequently Asked Questions

    Is an ETF safer than a stock?

    An ETF is more diversified than a single stock, which reduces the risk of one company destroying your portfolio. But ETFs still carry market risk. If the entire stock market drops 30%, your MSCI World ETF drops roughly 30% too. Diversification protects against company-specific risk, not market risk.

    Can I lose all my money in an ETF?

    For a broad index ETF to go to zero, every company in the index would have to go bankrupt simultaneously. This has never happened. Individual stocks can go to zero. Broad ETFs cannot, practically speaking. That said, they can and do lose significant value during market downturns: a 40%–50% drawdown is within the historical range for equity indices.

    What is the minimum amount to invest in an ETF?

    The price of one share. For the Vanguard FTSE All-World UCITS ETF, that is roughly €110–130. Some brokers like Trade Republic and Interactive Brokers offer fractional shares, allowing you to invest as little as €1. Monthly savings plans on many European brokers start from €1–25.

    Should I buy an ETF in EUR or USD?

    The trading currency does not affect your returns. Whether you buy IWDA in USD on Euronext Amsterdam or EUNL in EUR on Xetra, the underlying holdings are identical. Your real currency exposure is to the currencies of the companies in the index (mostly USD for an MSCI World ETF). The only difference is whether your broker needs to convert your EUR to USD before the trade, which may incur an FX fee. Buying in EUR on Xetra avoids that step.

    How are ETFs taxed in Europe?

    There is no single EU-wide tax treatment. Each country has its own rules for capital gains, dividends, and sometimes special provisions for ETFs (like Germany’s Vorabpauschale or France’s PEA wrapper). The general principle: you owe tax in your country of residence when you sell (capital gains) and possibly when you receive distributions. Consult your local tax authority or a tax advisor for specifics.

    What happens to my ETF if the provider (iShares, Vanguard) goes bankrupt?

    UCITS rules require that fund assets are held by an independent custodian (a large bank like State Street or BNP Paribas), separate from the fund provider. If iShares or Vanguard went under, the ETF’s holdings would still exist at the custodian. The fund would be liquidated or transferred to a new provider, and you would receive the value of your shares. Your investment is not lost.

    Disclaimer: This article is for informational purposes only and does not constitute investment, tax, or legal advice. ETFs carry market risk, including the potential loss of principal. Tax treatment depends on your individual circumstances and country of residence. Always consult a qualified advisor before making investment decisions.

    Some links in this article are affiliate links. If you open an account through these links, The Bourse Report may receive a commission, at no extra cost to you. See our full affiliate disclosure.

  • Degiro Review 2026: Low Fees, but Is It Enough?

    Degiro Review 2026: Low Fees, but Is It Enough?

    By Makkleod · Last updated:

    Degiro logo - Degiro review Europe 2026
    Degiro — one of Europe’s original low-cost brokers

    This Degiro review Europe 2026 Europe covers everything you need to know before opening an account in 2026. Degiro made cheap investing possible on the continent. For years, it was the broker European investors recommended to each other in Reddit threads, personal finance blogs, and office conversations. Open an account in ten minutes, buy an ETF for almost nothing, done.

    That was true in 2018. In 2026, the landscape looks different. Trade Republic and Scalable Capital charge €1 or less per trade and pay interest on your cash. IBKR gives you 150+ exchanges and the lowest FX rates in Europe. Degiro still works, and it still costs less than a traditional bank. But I went through the numbers carefully, and the verdict surprised me: for anyone opening a new account today, Degiro is no longer the obvious choice it once was. Rating: 7.5/10

    Key Takeaways

    • ETF Core Selection: €1 per trade on Tradegate, first monthly trade free per ETF
    • EU stock fees vary by country: €2 (France), €3 (NL, Ireland), €4.90 (Germany) per trade
    • US stock fees: €2 per trade (€1 commission + €1 handling), plus 0.25% FX conversion
    • No custody fees, no inactivity fees, no withdrawal fees
    • Regulated by BaFin (Germany), supervised by AFM/DNB (Netherlands)
    • €100,000 cash deposit guarantee (German scheme), €20,000 investor compensation
    • 3.5 million customers across 15 European countries
    • Best suited for buy-and-hold ETF investors with portfolios under €50,000 who prioritise simplicity

    Key Facts at a Glance

    Feature Details
    Founded 2008 (Amsterdam)
    Parent company flatexDEGIRO SE (publicly traded, FTK on Xetra)
    Primary regulator BaFin (Germany)
    Additional oversight AFM and DNB (Netherlands)
    Investor protection (cash) €100,000 (German Deposit Guarantee)
    Investor compensation Up to €20,000 (90% of loss)
    Available in 15 European countries
    Total customers ~3.5 million (Q4 2025)
    Minimum deposit €0.01 (effectively none)
    EU stock fee €2–€4.90 (varies by home exchange)
    US stock fee €2 (€1 + €1 handling)
    ETF Core Selection €1 per trade (first monthly trade free on Tradegate)
    FX conversion 0.25%
    Custody fee None
    Inactivity fee None
    Options Yes (€0.75 per contract)
    Futures Yes (€0.75 per contract)
    Interest on cash No

    Who Is Degiro Best For?

    European ETF investors on a budget. If you buy one or two ETFs per month through the Core Selection, your total trading cost is €1 per trade on Tradegate. The first trade each month in a given ETF is free. For a simple buy-and-hold strategy using UCITS ETFs, Degiro remains competitive.

    Investors who want a clean, minimal platform. Degiro’s interface does one thing and does it without clutter. You log in, you place an order, you leave. If IBKR’s four platforms and dozens of settings feel like overkill, Degiro is the opposite end of that spectrum.

    People who already have a Degiro account and are happy with it. Switching brokers involves transferring holdings, tax paperwork, and time. If your Degiro account is doing what you need, there is no urgent reason to move. The fee gap with newer competitors is real but not catastrophic for small portfolios.

    Who Should Look Elsewhere?

    Active traders. At €3–€4.90 per EU stock trade (depending on your country), 35 trades a year costs €105–€172 at Degiro versus €35 at Trade Republic. The gap widens with every trade.

    Global investors who buy US stocks regularly. Degiro charges 0.25% on every currency conversion. On €10,000 converted to dollars, that is €25. IBKR charges 0.03% for the same conversion: €3. Over a year of monthly conversions, the difference adds up to hundreds of euros.

    Anyone who values responsive customer support. Degiro’s support is email-only in most countries. Response times can stretch to days or weeks based on user reports. If you need a question answered before placing a trade, this matters.

    Investors who want to earn interest on idle cash. Degiro pays nothing on uninvested cash. Trade Republic pays 2.75% from the first euro. On a €5,000 cash buffer, that is €137 per year you leave on the table at Degiro.

    Fees & Pricing

    Degiro charges two things on every trade: a commission and a €1 handling fee. The commission depends on which exchange you trade on and whether it counts as your home market.

    Stock Trading Fees

    Your “home exchange” is the main exchange of the country where you opened your account. Degiro waives the annual connectivity fee for your home exchange and charges a lower commission on it. Here is what you pay per trade:

    Exchange Commission Handling Total per trade
    Euronext Paris (home for FR accounts) €1 €1 €2
    Euronext Amsterdam (home for NL accounts) €2 €1 €3
    Euronext Dublin (home for IE accounts) €2 €1 €3
    Xetra (home for DE accounts) €3.90 €1 €4.90
    US exchanges (NYSE, NASDAQ) €1 €1 €2

    For non-home European exchanges, add a €2.50 annual connectivity fee per exchange. This is capped at €2.50 per exchange per calendar year, so it only matters in your first trade of the year on that exchange.

    ETF Fees

    Degiro’s ETF Core Selection is its strongest feature. It includes over 1,000 ETFs on the Tradegate exchange. For these ETFs, you pay €0 commission + €1 handling = €1 per trade. The first trade per ETF per calendar month is free (no handling fee either) if you buy on Tradegate.

    ETFs outside the Core Selection cost €2 commission + €1 handling = €3 per trade on most exchanges.

    In October 2025, Degiro redesigned the Core Selection around Tradegate. The connectivity fee for Tradegate is waived, which makes this the cheapest way to buy ETFs on the platform.

    Degiro ETF search and selection screen showing available ETFs for European investors
    Degiro’s ETF search — browsing available ETFs on the platform

    Currency Conversion

    Every time you buy a non-EUR asset (US stocks, UK stocks), Degiro converts your euros at a 0.25% markup. The platform does this automatically on every trade. You cannot convert currency manually or hold foreign cash balances the way you can at IBKR.

    On a €5,000 US stock purchase, that is €12.50 in conversion fees, on top of the €2 trading fee. For context, IBKR charges €1.50 for the same conversion.

    Total Annual Cost Examples

    Using the three investor profiles from our best brokers comparison, here is what Degiro costs per year. We use €3 per EU trade (the NL/IE rate) as a representative mid-range figure:

    Profile Degiro IBKR Trade Republic
    Clara (€10K, 2 trades/yr, EU ETFs) ~€12 ~€18 −€53 (earns interest)
    Marc (€25K, 35 trades/yr, EU stocks) ~€107 ~€44 −€48 (earns interest)
    Sophie (€150K, 50 trades/yr, US+EU) ~€299 ~€77 ~€170

    Note: Clara’s Degiro cost uses Core Selection ETFs at €1 per trade. Marc’s and Sophie’s use the €3 mid-range for EU stocks. Sophie’s includes 0.25% FX conversion on €60,000 in annual currency conversions. For the full methodology, see our best online brokers comparison.

    Degiro is competitive for Clara’s simple ETF strategy. For Marc and Sophie, it is the most expensive option of the three.

    What is Free

    No custody fee, no inactivity fee, no deposit or withdrawal fees, no account maintenance fee. Real-time quotes on your home exchange are free. The Core Selection ETFs have no connectivity fee on Tradegate.

    Platform & User Experience

    Degiro login screen showing the clean, minimal interface for European investors
    Degiro’s login screen — clean and minimal, reflecting the platform’s no-frills approach

    Degiro offers a web platform and a mobile app (iOS and Android). There is no desktop application.

    You can find a stock, place an order, and check your portfolio without reading a manual. I tested the web platform and the navigation is fast: search, order, confirm, done. Compared to IBKR’s four platforms and dozens of configuration options, Degiro strips everything back to the essentials.

    That simplicity has trade-offs. There are no price alerts. The charting tools are basic. Portfolio reporting shows your total profit and loss but does not break down performance by individual position in a useful way. Research tools are minimal: you get basic fundamentals but nothing like IBKR’s analyst reports, screeners, or news feeds.

    Available order types: market, limit, stop loss, stop limit. Trailing stop orders work on German exchanges (Xetra and Frankfurt) only. If you trade on Euronext, you cannot set a trailing stop.

    The mobile app mirrors the web experience. It supports 11 languages. App store reviews praise the basics, but investors who want alerts, advanced charts, or detailed position analytics run into the platform’s limits fast.

    Available Markets & Products

    Degiro gives you access to 50+ exchanges in about 30 countries. That is broader than Trade Republic (1 exchange) or Scalable Capital (2 exchanges), but far narrower than IBKR (150+ exchanges).

    Asset class Available? Notes
    Stocks Yes 50+ exchanges, 30 countries
    ETFs Yes 5,000+, including 1,000+ Core Selection
    Bonds Yes 600+ government and corporate bonds
    Options Yes €0.75 per contract (limited exchanges)
    Futures Yes €0.75 per contract (US and European)
    Crypto Yes Launched October 2025. 0.5% per trade (0.29% in NL)
    Investment funds Yes 64 fund providers
    Forex No
    CFDs No
    Fractional shares No

    The product range is decent for a European retail broker. You can buy stocks and ETFs on most major exchanges, trade options and futures if you upgrade to an Active or Trader account, and access bonds. The October 2025 crypto launch added Bitcoin, Ethereum, and other cryptocurrencies.

    Two notable gaps: no fractional shares (IBKR offers them, but Trade Republic and Scalable Capital do not either) and no forex trading. If you want to hold USD or GBP cash balances and convert at your own timing, IBKR is the only European-accessible broker that does this well.

    Safety & Regulation

    Degiro is a brand of flatexDEGIRO SE, a publicly traded company on the Frankfurt Stock Exchange (ticker: FTK). In 2025, the group reported €560 million in revenue and €160 million in net income. It is a real company with real financial statements anyone can read.

    Regulators: BaFin (German Federal Financial Supervisory Authority) is the primary regulator. The AFM (Netherlands Authority for Financial Markets) and DNB (Dutch Central Bank) provide additional oversight because Degiro’s original entity is Dutch.

    Cash protection: €100,000 per client under the German Deposit Guarantee Scheme. This covers uninvested cash.

    Investor compensation: Up to €20,000 (90% of losses) under the Dutch Investor Compensation Scheme if Degiro fails to return your assets.

    Asset segregation: Your stocks and ETFs are held in a separate legal entity (a Special Purpose Vehicle). You remain the beneficial owner. If Degiro goes bankrupt, your holdings are not part of the insolvency estate.

    The BaFin History

    In 2023, BaFin fined flatexDEGIRO €560,000 for fee disclosure failures under the German Securities Trading Act. BaFin also appointed a special representative to oversee the company’s remediation. That mandate ended in September 2024 after an independent audit confirmed the issues had been resolved.

    Should this concern you? The fine was for disclosure practices, not for mishandling client money or securities. BaFin’s intervention shows the regulatory system working: a problem was identified, the regulator acted, the company fixed it, and oversight returned to normal. Many long-established European brokers have received BaFin fines. The question is how the company responded, and in this case, the response satisfied the regulator within about 18 months.

    Degiro Review Europe: How It Compares

    Here is Degiro side by side with the brokers European investors compare it to most often. This table uses the same format and data points as our IBKR review for consistency:

    Feature Degiro IBKR Trade Republic Scalable Capital
    EU stock fee €2–€4.90 €3 / 0.05% €1.00 €0.99 (or €0 on PRIME+)
    US stock fee €2.00 ~$1.00 €1.00 €0.99
    FX conversion 0.25% 0.03% Variable (~0.2%) N/A (EUR only)
    ETF savings plans Core Selection (€1) Limited Free Free
    Options / Futures Yes (limited) Yes (full) No No
    Global exchanges 50+ (30 countries) 150+ (33 countries) 1 (LS Exchange) 2 (gettex + Xetra)
    Interest on cash No ~1.4% EUR (above €10K) Up to 2.75% Up to 2.6% (PRIME+)
    Minimum deposit €0.01 €0 €1 €1
    Regulation BaFin + AFM/DNB CBI (Ireland) BaFin + ECB BaFin
    Investor protection €100,000 €20,000 €100,000 €100,000
    Best for Budget ETF investors Global investors, options Beginners, savers ETF savings plans

    For a detailed head-to-head, see our IBKR vs Degiro comparison. For a broader overview, read our guide to the best online brokers for European investors.

    How to Open a Degiro Account

    [AFFILIATE:DEGIRO]

    Step 1: Go to degiro.com and select your country of residence. Degiro operates separate entities per country (degiro.fr, degiro.de, degiro.nl, etc.). Your country determines your home exchange and fee schedule.

    Step 2: Complete the registration form. Name, email, phone number, tax identification number. Degiro asks about your investment experience and financial situation to classify your account type (Basic, Active, or Trader).

    Step 3: Verify your identity. Upload a government-issued ID (passport or national ID card). Most European residents can verify through an automated process. Approval takes minutes to a few hours.

    Step 4: Fund your account. Bank transfer (SEPA) or iDEAL (Netherlands). Degiro provides a dedicated IBAN. Deposits are free. SEPA transfers arrive within 1 business day.

    Step 5: Start trading. Search for the stock or ETF you want, choose your order type (limit orders are recommended over market orders for better price control), and confirm. For Core Selection ETFs, make sure you select Tradegate as the exchange to get the €1 fee.

    Account Types

    Degiro offers four account profiles: Basic, Active, Trader, and Day Trader. Basic accounts are for buy-and-hold investors (no margin, no short-selling). Active and Trader accounts unlock derivatives and margin trading. You can upgrade for free at any time through your account settings.

    Frequently Asked Questions

    Is Degiro safe for European investors?

    Yes. Degiro is regulated by BaFin (Germany) with additional supervision from the AFM and DNB in the Netherlands. Your cash is protected up to €100,000 under the German Deposit Guarantee Scheme. Your stocks and ETFs are held in a segregated Special Purpose Vehicle, meaning they remain legally yours even if Degiro goes bankrupt. The parent company, flatexDEGIRO SE, is publicly traded on the Frankfurt Stock Exchange and reported €560 million in revenue in 2025.

    What are Degiro’s fees for stocks and ETFs?

    EU stock fees depend on your home exchange: €2 per trade for French accounts (Euronext Paris), €3 for Dutch and Irish accounts, and €4.90 for German accounts (Xetra). US stocks cost €2 per trade everywhere. ETFs in the Core Selection cost €1 per trade on Tradegate, with the first monthly trade in each ETF free. ETFs outside the Core Selection cost €3 per trade. There are no custody, inactivity, or withdrawal fees.

    How does Degiro’s ETF Core Selection work?

    The Core Selection includes over 1,000 ETFs available on the Tradegate exchange. You pay €0 commission + €1 handling fee = €1 per trade. The first purchase of each ETF per calendar month is completely free (no handling fee either). There is no connectivity fee for Tradegate. To get these prices, you must select Tradegate as the exchange when placing your order. If you buy the same ETF on a different exchange, you pay the standard €3 fee.

    How does Degiro compare to Interactive Brokers?

    For small portfolios invested in European ETFs, Degiro is simpler and roughly comparable in cost. For larger portfolios, international investing, or options trading, IBKR is cheaper and more capable. The biggest difference is currency conversion: Degiro charges 0.25% versus IBKR’s 0.03%. On €10,000 converted, that is €25 at Degiro versus €3 at IBKR. IBKR also offers 150+ exchanges (vs Degiro’s 50+), full options and futures trading, and interest on idle cash. Read our full IBKR vs Degiro comparison.

    Does Degiro pay interest on cash?

    No. Degiro does not pay interest on uninvested cash balances. For comparison, Trade Republic pays 2.75% on all cash with no minimum threshold, and IBKR pays approximately 1.4% on EUR balances above €10,000. If you keep significant cash at your broker, this is a real cost of using Degiro.

    Methodology

    This Degiro review is based on official fee schedules from degiro.ie, degiro.nl, degiro.de, and degiro.fr, verified in March 2026. Fee data was cross-referenced with BrokerChooser and EU Personal Finance. Regulatory information was confirmed with BaFin’s public register. Financial data for flatexDEGIRO SE comes from the company’s Q4 2025 earnings release. Competitor data was sourced from official broker websites. The author does not have a funded Degiro account; this review is based on fee schedules, regulatory filings, platform documentation, and conversations with Degiro users. Our broker ratings consider fees (30%), product range (20%), platform quality (20%), safety and regulation (15%), and customer service (15%). For our full approach, see our editorial policy.

    Disclaimer: The information in this article is for educational and informational purposes only and does not constitute financial advice. All investment decisions carry risk, and you should conduct your own research and consult a qualified financial adviser before making any investment decisions. Broker fees, features, and regulations change. Always verify current information on the broker’s official website. See our full disclaimer.

    Disclosure: This article contains affiliate links. We may earn a commission if you open an account through our links, at no additional cost to you. This does not influence our ratings or recommendations. See our full affiliate disclosure.