DEGIRO regulation

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Adam N.
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Is DEGIRO regulated?

Trying to find out whether DEGIRO is regulated? Not sure which authorities are overseeing DEGIRO and why this matters?

Rest assured, the lack of regulation at DEGIRO is not a reason for worry. Our brokerage experts have determined that DEGIRO is a fully regulated broker, overseen in Germany. We gathered all the information on the regulatory profile of DEGIRO and will explain why this matters.

Why DEGIRO is trustworthy
Adam Nasli
Financial Wizard | Forex • Algo Trading • Market Analysis

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of DEGIRO as of April 2024:

  • DEGIRO operates under a very strict regulator, which is vital for the safety of your money if you have an account with the broker.
  • DEGIRO must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
  • Explore the services of DEGIRO in our comprehensive DEGIRO review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.
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DEGIRO has top-tier regulation

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

DEGIRO has the following regulation (country of clients - regulatory body):

  • All countries - Federal Financial Supervisory Authority (BaFin)

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Your can protect your money by choosing a well-regulated broker.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

Client fund segregation: your ultimate safeguard

As a broker with top-tier regulation, DEGIRO is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from DEGIRO’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that DEGIRO commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

When you open an account with DEGIRO, you are eligible for investor protection for up to €20,000 in securities and, additionally, up to €100,000 of any uninvested cash in your DEGIRO Cash Account.

DEGIRO clients' assets are segregated in separate entities and thus protected in the case of DEGIRO's insolvency. In the unlikely event that the segregated assets cannot be returned to clients, DEGIRO falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of €20,000).

Furthermore, any money deposited in a DEGIRO Cash Account with flatexDEGIRO Bank AG will be guaranteed up to an amount of €100,000 under the German Deposit Guarantee Scheme. This is thanks to DEGIRO's banking background.

DEGIRO investor protection
Country of clients Protection amount Regulator Legal entity
All countries €20,000 for securities (+all cash held on DEGIRO Cash Accounts up to €100,000) Federal Financial Supervisory Authority (BaFin), Germany flatexDEGIRO Bank Dutch Branch

Negative balance protection is not available, but we don't think this should be a concern as DEGIRO is not a CFD/forex broker.

Your uninvested money will be held in a segregated personal bank account with a personal IBAN. This Cash Account will be directly connected to your existing DEGIRO investment account. It is not possible to use this Cash Account for other general banking purposes. You can only use it to hold money so that it is readily available for investments on your DEGIRO account.

Get to know DEGIRO better and browse other top-tier regulated brokers

For detailed insights into trading conditions, costs, and service quality at DEGIRO, check out BrokerChooser's DEGIRO review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.

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Further reading

Author of this article

Adam Nasli

Financial Wizard | Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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