Degiro

DEGIRO B.V.
Private Limited Company
Industry Financial Services
Founded 2008
Headquarters Amsterdam, Netherlands
Services Shares trading, Options, Futures, ETFs
Website www.degirogroup.com, www.degiro.co.uk

DEGIRO is a Dutch brokerage company, based in Amsterdam. It was founded in 2008 by a group of five former employees of Binck Bank to service the professional market.[1] In 2013, DEGIRO started offering its discount brokerage services to retail investors, giving them online access to over 60 security exchanges worldwide at wholesale prices.[2] Investors can buy and sell such securities as common and preferred stocks, fixed income (bonds), options, mutual funds, warrants and ETFs via an electronic trading platform or by phone.

History

DEGIRO was established in 2008 to service professional clients.[3] On 23 September 2013,[4] DEGIRO launched its services for retail clients in the Netherlands. In 2014 and 2015 DEGIRO then expanded to offer its platform across other European countries.

On 22 September 2014, Euronext announced its new partnership with DEGIRO [5] regarding the distribution of retail services of Euronext. Upon publishing the third quarter results for 2014, the partnership was seen as a plan for Euronext to compete more effectively on the Dutch retail segment.[6] They are still partners as of 1 April 2016.

The company launched its English-language platform in the United Kingdom on 11 June 2015.[7] The countries they now offer services to are Netherlands, Italy, France, Austria, Switzerland, Germany, Czech republic, Spain, Portugal, Poland, Greece, Hungary, Denmark, Sweden, United Kingdom, Norway, Finland and Ireland.

Regulatory

DEGIRO is supervised by the Netherlands Authority for the Financial Markets (AFM)[8] and under prudential supervision of the De Nederlandsche Bank (DNB).It is also registered with the Financial Conduct Authority(FCA)[9]

Trading platforms

Degiro supplies its clients with a browser-based HTML trading platform developed in-house, for desktop and mobile devices. It features free real-time streaming prices on certain European stocks, as well as five levels order book. The platform supports combined orders (spread portfolio compilation), and the company has announced plans for fractional investing (investing in fractions of products).

Awards

The company has received various awards in different countries. In the Netherlands, DEGIRO earned the first place in a 2015 survey for the cheapest broker in Financieel Dagblad.[10] In 2014, VEB[11] considered DEGIRO to be the cheapest broker for investments in shares, bonds, options and turbos and in the same year, Beleggers Belangen[12] elected the company as the #1 Dutch broker in regard to costs, trade opportunities, convenience and service. Consumentenbond, a Dutch non-profit organization which promotes consumer protection considered DEGIRO to be the cheapest Dutch broker. Finally, DEGIRO also won the Golden Bull Award in 2015, where Dutch brokers are judged in different categories, such as trading opportunities, commission fees, terms and conditions and investment tools.

Internationally, DEGIRO has been awarded by Privata Affärer[13] in Sweden and by Finanztreff[14] in Germany, due to the low trading prices for retail clients.

Critics

While the broker received various awards, there also have been critical reactions. The process of internalization of customer's orders against DeGiro's own hedge fund HiQ Market Neutral fund was subject of investigative press.[15] Clients were denied execution of passive orders, because the internalizer jumped in front of them.

References

  1. ↑ "About DEGIRO".
  2. ↑ Clinch, Matt (15 June 2015). "Is this the end of 'rip-off' stockbroker fees?". CNBC.
  3. ↑ "New kid on the investing block offers chance to buy shares from just £1.75!". This is Money. 11 June 2015.
  4. ↑ "DeGiro stunt met brokertarieven" (in Dutch). IEX. 23 September 2013.
  5. ↑ "Euronext to Partner with Degiro on Dutch Retail Investor Services". 22 September 2014.
  6. ↑ "Euronext Publishes Third Quarter 2014 Results". Reuters. 6 November 2014.
  7. ↑ "Cheapest-ever broker lets you trade shares for less than £2". Telegraph. 11 June 2015.
  8. ↑ "AFM Registration".
  9. ↑ "Brokerchooser Degiro Review". Brokerchooser. Retrieved 10 April 2017.
  10. ↑ "Onlinebrokers staken hun prijzenslag(Dutch)". 13 March 2015.
  11. ↑ "Brokeronderzoek2014; de onderzoeksresultaten (Dutch)". 21 March 2014.
  12. ↑ "Brokeronderzoek: we have a winner". 4 December 2014.
  13. ↑ "Här är sju Årets Bank-pristagare till (Swedish)". 22 December 2014.
  14. ↑ "DEGIRO ist der eindeutige Sieger des finanztreff.de Brokertests (German)".
  15. ↑ Amsterdamtrader.com, How DeGiro Screws Clients, 20 October 2015
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