DEGIRO Company Overview

Founding Date and Background

DEGIRO was founded in 2013 with the mission of making investing accessible and affordable for retail investors. It revolutionized the retail investing landscape by introducing a low-fee structure that allowed individuals from diverse backgrounds to participate in global markets.

Parent Company/Ownership Structure

DEGIRO is a subsidiary of flatexDEGIRO Bank AG, which was formed in 2020 when DEGIRO merged with flatex AG. This merger positioned the company as one of the largest online brokers in Europe, further enhancing its service offerings and market reach.

Headquarters Location

The company is headquartered in Amsterdam, Netherlands, which serves as a strategic location for its operations across Europe.

Global Business Scope

DEGIRO operates in 16 European countries, providing retail investors with access to more than 50 global exchanges. This extensive reach allows clients to diversify their investments across various markets and asset classes.

Main Regulatory Bodies

DEGIRO is regulated by several financial authorities, including:

• The Dutch Authority for the Financial Markets (AFM)
• The Dutch Central Bank (DNB)
• The German Federal Financial Supervisory Authority (BaFin)

These regulatory bodies ensure that DEGIRO adheres to strict financial standards and practices, providing a secure trading environment for its clients.

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Company History and Development

Key Milestones

• 2013: DEGIRO launched its services in the Netherlands, offering retail clients the ability to invest with remarkably low fees.
• 2014: The company expanded its services to nine additional European countries, establishing itself in the market and winning awards for its innovative approach.
• 2020: DEGIRO merged with flatex AG, becoming flatexDEGIRO Bank AG and enhancing its position in the European brokerage market.
• 2023: The company celebrated its 10th anniversary and received over 100 international awards, recognizing its excellence in the financial services sector.

Business Expansion Journey

Since its inception, DEGIRO has focused on expanding its footprint across Europe. The company began by offering services in the Netherlands and gradually extended its reach to countries like Germany, France, Spain, and Italy, among others. This expansion has been fueled by its competitive pricing model and commitment to customer service.

Customer Base Growth

DEGIRO has seen significant growth in its customer base, reaching over 2.6 million clients by 2023. The company has established itself as a leading broker in the Netherlands, with more than 750,000 investors utilizing its platform.

Platform Development History

DEGIRO has continuously improved its trading platform based on client feedback and technological advancements. The introduction of features such as dark mode, enhanced financial data, and mobile trading capabilities has contributed to a user-friendly experience. The platform is developed in-house, allowing for tailored improvements that meet the needs of its users.

Important Awards or Recognitions Received

DEGIRO has received numerous awards for its services, including:

• Best Online Broker (various years)
• Best Low-Cost Broker by Financial Times & Investors Chronicle
• Best Customer Service in Italy

These accolades reflect DEGIRO's commitment to providing high-quality services and maintaining customer satisfaction.

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Trading Services Offered

Forex Trading Options

DEGIRO provides limited forex trading options, focusing primarily on stock and ETF trading. The platform does not currently offer trading in forex pairs, which may be a consideration for traders seeking comprehensive forex services.

Stock Trading Options

DEGIRO allows clients to trade stocks on over 50 global exchanges, including major markets in the U.S., Europe, and Asia. The fee structure is competitive, with commissions starting as low as €1 for U.S. stocks and £1.75 for UK stocks, plus handling fees.

CFD Trading Products

DEGIRO does not offer Contracts for Difference (CFDs) as part of its trading services. This limitation may affect traders interested in leveraged trading products.

Other Financial Instruments

While DEGIRO primarily focuses on stocks and ETFs, it also offers options trading with competitive fees. However, the platform does not currently support trading in cryptocurrencies or commodities.

Special Services or Unique Advantages

DEGIRO's unique advantages include:

• Low fees that revolutionized the industry, making investing accessible to a broader audience.
• A user-friendly platform that is continuously improved based on client feedback.
• Access to a wide range of global markets, allowing for diversification.

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Regulatory and Legal Background

Detailed Regulatory Information

DEGIRO operates under the supervision of the following regulatory bodies:

• Dutch Authority for the Financial Markets (AFM)
• Dutch Central Bank (DNB)
• German Federal Financial Supervisory Authority (BaFin)

These authorities ensure that DEGIRO complies with stringent regulations regarding financial practices and client protection.

Legal Entity Structure by Region

In the Netherlands, DEGIRO operates as flatexDEGIRO Bank AG, a regulated banking entity. The company is also registered with the Financial Conduct Authority (FCA) in the UK, allowing it to serve clients in the British market.

Client Fund Protection Measures

Client funds are protected up to €100,000 under the German deposit guarantee scheme. Additionally, DEGIRO employs a segregated account structure, ensuring that client assets are kept separate from the companys operational funds.

Countries/Regions Served

DEGIRO serves clients in 16 European countries, providing access to a broad range of financial markets. This extensive reach enables investors to diversify their portfolios effectively.

Compliance History

DEGIRO maintains a strong compliance record, adhering to the regulations set forth by its governing bodies. The company has implemented robust internal controls to ensure compliance with financial regulations and protect client interests.

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Competitive Landscape

Main Competitors

DEGIRO faces competition from several key players in the online brokerage market, including:

• Interactive Brokers: Known for its extensive range of trading options and advanced trading tools.
• eToro: A social trading platform that allows users to copy the trades of successful investors.
• Saxo Bank: Offers a wide array of investment products and sophisticated trading tools.
• Robinhood: Popular for its commission-free trading model, primarily in the U.S. market.

Positioning in the Industry

DEGIRO positions itself as a low-cost broker focused on providing retail investors with access to global markets. Its competitive fee structure and user-friendly platform differentiate it from traditional brokers that charge higher commissions.

Market Differentiation Factors

DEGIRO's key differentiators include:

• A transparent fee structure with no hidden costs, making it easier for investors to understand their trading expenses.
• A strong emphasis on innovation and continuous platform improvement based on user feedback.
• Access to a diverse range of global markets, allowing clients to build well-diversified investment portfolios.

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In conclusion, DEGIRO has established itself as a leading online broker in Europe by focusing on low fees, a user-friendly platform, and a commitment to customer service. Its growth trajectory and regulatory compliance further reinforce its position as a reliable choice for retail investors looking to access global markets. For more information about DEGIRO, please visit their official website.