Guides

DEGIRO Broker For Beginners: Complete Guide 2022

Super Guia by DEGIRO, one of the best brokers of 2022

Looking begin in the investment world and you would like to know DEGIRO step by step? In this article, I share a Super Guide to DEGIRO 2022 so that you know all that this broker can offer you for invest in the stock market.

What is a Broker

Before getting to the heart of the matter, if you are wondering what a broker is, I will tell you in a nutshell. A few years ago, a broker referred to the figure of the stockbroker, that is to say the person who advised you when and how to buy your shares. And he was in charge of managing your transactions in exchange for a commission.

In that case, DEGIRO is an online brokerAn entity that only acts as an intermediary between you and the operations you perform in stock exchange 

What is DEGIRO?

For those who do not know it yet, DEGIRO is a broker to invest in the stock market and other financial products. 

This broker was born in 2008 in the Netherlands as an option reserved for professional investors. In 2013 they started offering their service to private investors in the Netherlands, and in 2014 their European expansion took place, reaching France.

An online broker that allows you to invest in stocks on the Internet, with your computer or with the DEGIRO mobile application. 

Currently, this platform has more than 2.000.000 investors from 18 countries. 

The main objective of DEGIRO is to allow all types of investors to invest their money in stock exchanges and financial products, while minimizing the cost for the investors themselves.

DEGIRO, a great broker

DEGIRO is considered one of the best brokers. And I'm not saying it, the experts say it. This broker has won 82 international awards. It's' one of the brokers with the greatest advantages in investment. Benefits that we will see in this guide for beginners. Today, DEGIRO is one of the best brokers to invest in France. 

Is this broker for you?

If you are new to the investment world and you need a simple broker to start investing, I highly recommend it.

But who is this broker for? East – DEGIRO suitable for everyone ?

The main advantage of DEGIRO is that it has very low commissions, which makes it an ideal broker if you want to buy and sell stocks, or just buy.  

This broker is for you:

  • If you want to build a stock portfolio.
  • If you want to follow investment strategies.
  • If you want to trade.
  • If you want to invest in ETFs.

If, on the other hand, you want to invest in mutual funds, I advise against it, since its offer is limited. In this case, you can combine DEGIRO with another broker.

Conditions for opening an account

To open an account with DEGIRO, you must meet a series of basic requirements.

  • Be of legal age and reside in France (or in 17 other European countries).
  • Verify your identity and provide your bank account.
  • Accept their policies and terms of use.
  • Take a short investor quiz where they'll recommend the most suitable account for you.

Accounts offered by DEGIRO

DEGIRO offers up to 5 different accounts, each with its particularities. Let's see each of them!

Basic account

The basic account is the most basic option on the platform. If you are a beginner, I recommend that you start here to familiarize yourself with the broker. The main features of this account:

  • DEGIRO may lend up to 30% of your shares to third parties.
  • It receives no commission on the collection of dividends.
  • Allows you to trade stocks, funds, bonds and ETFs.
  • It does not allow options, futures, short stocks or leverage.

Deposit account

The custody account is a step closer to the basic account. We highlight the following:

  • Shares are not lent to third parties.
  • Allows you to trade stocks, funds, bonds and ETFs.
  • The commission is paid for the collection of dividends (1 € + 3%, up to a maximum of 10%).
  • It does not allow options, futures, short stocks or leverage.

Active account

The Active account gives us greater possibilities:

  • It allows you options, futures, short stocks and leverage.
  • You can trade stocks, bonds, funds and ETFs.
  • You can use up to 50% of your available margin.

Merchant account

The Trader account allows us the same as the Active profile, with the only feature that you can use up to 100% of your available margin. There are no limits.

Day Trader account

The Day Trader profile allows you a higher level of leverage and margin than the Trader account.

These are the 5 accounts or profiles that DEGIRO allows you. As I mentioned at the beginning, I recommend you to use the Basic account. The main difference between the DEGIRO Basic Account and the Custodian Account is that the Custodian does not lend the shares, i.e. they are in your custody. You must keep in mind that once you have chosen the Basic account, you cannot upgrade to the Custody version, and vice versa.

How to open a DEGIRO account step by step

If you were interested in this broker, you would surely like to know how to open an account step by step.

To open an account on DEGIRO, all you need to do is enter the platform and fill in some basic personal information and an email address. The platform is quite simple to use and the registration process is very intuitive. At any time, the platform will tell you how to register. Opening your account will take approximately 10 minutes. And best of all, it's all online.

An important aspect to keep in mind is that you can only open an account if you live in Europe.

  1. The first step will be to register. here is the internet. .
  2. Next, enter your basic personal information.
  3. Verify your email by clicking on the email they send you.
  4. The next step to verify your identity and activate your DEGIRO account will be to make a bank transfer of 1 euro cent.
  5. Finally, you accept the contract and voila! You can now start using your DEGIRO account (there may be a delay (up to 48h) between deposit and account access).

What is the minimum amount to open an account?

Le minimum deposit to open an account with DEGIRO is 1 euro cent. This budget will have to be done manually by bank transfer or with an account already registered.

The main DEGIRO panel

Then we will see the DEGIRO panel and the main menu of this platform so that you better understand how it works.

When you log in, you'll find a sidebar with five basic menus.

  1. Markets. It shows you the evolution of the price of the main stock exchanges in the world.
  2. Favorites. The Favorites option allows you to mark products as favorites and they will appear in this block so you can check them whenever you want.
  3. Portfolio. This block displays the status of all positions you have opened. Includes profit and loss to date.
  4. Activity. In the activity tab, you will be able to see all the buy and sell orders you have made, income, dividends and money withdrawals. It allows you to have control of all your operations.
  5. Products. In this menu, you can search for the financial product that interests you.

Also, in the top bar of the platform, you will find data about your investments such as:

  • Portfolio: total value of your investments.
  • Full account: total value of your portfolio.
  • EUR MMF: money you have available to invest that is currently in money market funds.
  • Day +/-: change in your portfolio today.
  • Free margin. Indicates the risk of the portfolio. It will depend on the investments you make. To ensure that this margin is always positive, you should avoid complex products such as short positions and derivatives.

The most important thing is that DEGIRO allows you to easily monitor your trades and allows you to keep track, which allows us to set the limit of the price at which you want to buy and sell. This is known as a stop loss.

What products can you invest in at DEGIRO?

DEGIRO offers us many investment products, allowing us to invest in virtually all stock markets in the world.

The products offered by this broker:

  • Shares. Shares are the strong product of this platform. It allows us to invest in companies in virtually any country in the world.
  • Investment Funds. Although it is not their forte, they are gradually adding more and more investment funds to the platform.
  • ETF. DEGIRO also offers an extensive catalog of ETFs. ETFs, also called trackers, are very similar to index mutual funds.
  • Obligations. This platform gives us access to bonds from European markets such as Germany, Holland, France, among others.
  • Options. Thanks to this broker, you can invest in options on the European and American markets.
  • To come up. Access to European and American futures markets.

How to buy DEGIRO shares

Buying DEGIRO shares is very simple. All you have to do is write the name of the company or product you are interested in in the platform's search engine and select in which bag you want to buy.

When buying a stock, we can do it through several types of actions: either by setting a limit order, that is, the maximum price at which we want to buy. Or through a market order. In the latter case, we will buy immediately, regardless of the stock price.

We can also choose a Stop Limit Order or a Stoploss. These last two options are very useful for avoiding risk in short-term trading.

Advantages of DEGIRO

DEGIRO has many advantages as I mentioned at the beginning, among them:

Free Account

Opening a DEGIRO account is free and does not charge you any maintenance or inactivity fees.

Very cheap broker

DEGIRO is one of the cheapest online brokers in the market. It allows you to invest in different financial products from all over the world.

Very low commissions

This broker allows you to operate in the financial markets by paying very low commissions. In fact, there are certain products for which DEGIRO does not charge a commission. Here you can see in detail the rates of all its commissions:

A very simple and intuitive platform

If you are new to this world, you will need a simple investment platform. DEGIRO is for you. One of the great advantages of this broker is its platform, which is very intuitive. It will be very easy for you to do operations. With the click of a button, you can buy and sell shares of any company in France or another country.

Wide variety of investment products

DEGIRO offers a wide variety of investment products. It allows you to access the stock exchanges of all countries in the world, it offers you to buy bonds, investment funds, ETFs (trackers), etc.

Fees to DEGIRO

As I mentioned before, DEGIRO is one of the online brokers with the lowest commissions in the market.

Expenses will very much depend on the type of account you choose to operate and the products you invest in. In general, you can save up to 80% commission compared to other brokers.

This broker will only charge you commissions for the services you use. That is to say, you will not find any unexpected fees for opening your account, inactivity, deposits, maintenance or custody.

A safe broker

Security is not an issue you should worry about since DEGIRO is a totally reliable broker. DEGIRO ensures the security of all your investments. Your investments (including money invested in money market funds) are kept separate from the platform.

My experience with DEGIRO 

In general, my experience with this broker has been pretty good. I've been using it for a long time and it generally works great.

The best thing for me, about this broker is the very low commissions it has. But this also has consequences for the variety of products.

I miss more US options and futures, and I can also operate in the pre-market.

Another significant downside is that many times due to traffic your platform can be affected. This happens very rarely.

In conclusion, it is a broker that I recommend 100% for beginners, without a doubt, to everyone, easy to use and very low commissions.

If you want to invest in more complex products, I would recommend another one like Interactive Broker, but it has much higher commissions.

24×7 Helpdesk

If you have any questions or incidents with this broker, the platform is ready to resolve them electronically 24 hours a day, 24 days a week. Therefore, if you have a problem with a trade, you will not have to being overwhelmed. Simply, it will be solved with one click.

So far this Super DEGIRO guide. I hope this helps you to enter this exciting world of investments or to be very successful. What do you think? Do you recommend another broker? We read!

DISCLAIMER: Investing involves risk of loss

Similar items

Leave your comment

Your email address will not be published. Required fields are marked with *

Button back to top