Degiro Fees and Charges

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  • BenutzernameMoneyland User Questions
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  • Registriert seit1/27/17
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Hi there,

Can you please tell me exactly how high Degiro's fees and charges are? I couldn't find this information on moneyland.ch. Thank you.

 
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  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
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  • Registriert seit8/4/15
  • Beiträge4016

Hi there,

Degiro is not included in the online broker comaprison on moneyland.ch because it is not a Swiss securities broker. Only brokers which hold a FINMA license are included in the comparison. The reason for this is that there are hundreds of online brokers outside of Switzerland, many of which offer their services across borders. Many international brokers do not provide the same level of investor-protection provided by regulated Swiss brokers.

Here is an overview of Degiro fees:

Custodial fees: None, according to Degiro. However, Degiro does charge a "service fee" of 0.2 percent for the safekeeping of investment fund shares.

Account fees: None, according to Degiro.

Stock exchange fees: These often are not accounted for in price comparisons. Degiro charges a special fee of EUR 2.50 per per year for each stock exchange which you trade on. Swiss brokers do not use this type of flat-fee model.

Spreads: Like most brokers, Degiro profits when you buy securities in a foreign currency. The currency exchange rates used by Degiro are not published openly.

Transfer fees: A fee of EUR 10 per position (per stock title, for example) is charged when you transfer securities to Degiro from an existing custody account. Swiss brokers do not charge you a fee when you transfer securities to their custody accounts.

Brokerage fees: The fee schedules used by Degiro are somewhat confusing. Different schedules apply to Basic, Active and Trader users (available as a PDF - the terms "Standard account" and "Standard profile" are sometimes used), and to Custody users (separate PDF). There are currently no significant differences in fees across different account types offered to Swiss users. However, this may change in the future once Degiro has obtained market share, so checking the conditions attached to each account type is recommended.

These brokerage fees currently apply:

Purchase or sale of Swiss stocks: CHF 5 + 0.04 percent.
Purchase or sale of ETF shares: EUR 2 + 0.02 percent.
Purchase or sale of investment fund shares: EUR 7.5 + 0.2 percent.
Purchase or sale of U.S. stocks: USD 0.5 + USD 0.004 per share.
Purchase or slae of German stocks: EUR 4 + 0.04 percent.

There are differences in fees charged for real-time rates for stock exchanges outside of Switzerland. These are charged separately for Custody users and can be expensive. For example, access to real-time rates for the German XETRA cost EUR 18.20 per month. Access to real-time rates from NASDAQ costs EUR 5 per month.

There are also differences in the way dividends are processed: Dividends are processed free of charge for Standard users (as is customary with Swiss brokers); Custody users, on the other hand, pay EUR 1 + 3 percent of dividends (maximum 10 percent) for processing.

Important: Securities held by Standard users can be lent to third parties! Due to the risks involved in securities lending, this Standard account is not recommended.

It is important to note that Degiro is not a Swiss broker and it is not regulated by Swiss authorities. Using foreign brokers is only recommended for experienced investors who understand the risks and can navigate hidden fees.

Best regards from Moneyguru

More on this topic:
Swiss online broker comparison

 
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  • BenutzernameMoneyland User Questions
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  • Registriert seit1/27/17
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Does Degiro charge inactivity fees? If so, how often do you have to trade to avoid them?