Thoughts on Degiro

BlueEagle

A long time lurker here. I've been using Degiro for several years and found them to be very good, especially with their long list of free ETFs. 

However they rarely get a mention on here and I wondered why that is? 

The main downside I can see is the €20k limit on protection but for those with smaller pots that's not an issue.

Alexland

BlueEagle said:

However they rarely get a mention on here and I wondered why that is?

Probably because forum members tend to invest using tax efficient ISAs and SIPPs which Degiro don't seem to offer. These wrappers tend to cost the platforms more to operate as there are the extra transfer, reporting, etc requirements.

For small amounts maybe a general account operated carefully might not create any tax liability but it's not making good use of annual contribution allowances for future growth, there's record keeping hassle and the dividends factor into adjusted net income which for some of us would be an issue. Although they have the FCA registration and regulation the lack of FSCS protection is a downside. Overall too many compromises to be worthwhile for many of us.

BlueEagle

Fair point about ISAs, I forgot I have a slightly unusual situation of already contributing to another S&S ISA so can't use two simultaneously. 

Is that really an issue for smaller amounts though? With CGT and dividend allowances, you'd need maybe >£50k before that became an issue (dividend more so because the CGT can be managed). I realise this is sounding a little like an advert, but could it not be a standard starting point for anyone with <20k? with them moving onto one of the others when degiro becomes 'full'. Sure there are plenty on here with far more but we also see plenty of posts from those who have never invested and will be starting gradually.

Albermarle

I think the problem is that outside an ISA/SIPP , you have to keep records of capital sales gains/losses and dividend income even if it is unlikely you will actually pay any tax on them .
It is much simpler for a novice ( or even an experienced investor ) to invest within a tax wrapper.