Stock index options at DEGIRO

Considering trading stock index options at DEGIRO? Let's see whether they offer this service, what fees you'll face, and if this broker is the best fit for you to trade options.

With DEGIRO, the picture is mixed: although you can trade stock index options, and at low fees, our overall assessment still suggests there are better broker alternatives for options trading.

DEGIRO is not your best bet for trading stock index options

[Broker name] is not your best bet for trading stock index options

Adam Nasli

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.

Learn about our methodology

Adam Nasli

Trading • Safety • Market Analysis

I've reviewed dozens of options brokers and made hundreds of options trades to size up whether they're the optimal platform for trading stock index options. My overall verdict is that DEGIRO is not your best choice:

• You can trade stock index options at DEGIRO.
• DEGIRO charges low fees for trading stock index options.
• However, its unimpressive options-related services place it below the competition.

• For better alternatives, see the top brokers for options trading.

Before we begin, let's see if DEGIRO is available in your country

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Options trading is increasingly popular, but it's still something of a niche product aimed at more experienced traders, so not all brokers offer it and trading conditions can differ widely.

Options trading is all about buying and selling contracts that give you the right, but not the obligation, to buy or sell an asset at a specific price before a certain date. The asset can be a stock, a stock index, a foreign currency, or even a commodity like oil.

In this article, we concentrate on stock index options - which are available at DEGIRO, on a total of 11 options exchanges. You can trade the stock index options for the following countries (additional ones may be available as well):

• US stock index options
• German stock index options

Imagine stock index options like placing a bet on the overall market's future direction, rather than on a single stock. Think of it like predicting whether the S&P 500 will rise or fall. You buy an option that gives you the right to trade that index at today's level, no matter where it goes later. If you're right and the market moves in your favor, you profit. If not, you only lose the cost of the option. It's a bit like betting on the weather - predicting sunny skies ahead and locking in your beach plans before the crowd rushes in!

You can trade on quite a few options markets at DEGIRO.

Trading stock index options involves either buying or selling contracts based on a market index. When you buy a stock index option, you're paying for the opportunity to make a move on the index at a future date, without locking yourself in immediately. When you sell a stock index option, you're giving someone else that opportunity, and you collect the premium they pay for that right.

Now, let's talk fees. Every options trade comes with its own set of costs. Typically, you're looking at a base, or minimum fee per trade, plus a fee per contract. Some brokers may also cap the amount you have to pay at a certain maximum. For example, you might pay a $5 base fee for each trade, plus a $0.65 per contract fee.

Overall, DEGIRO has low fees for trading stock index options. You can see the conditions in the table below.

So what's all the fuss about fees? They may seem like a tiny fraction of a trade's value, but the differences among brokers can be significant. Among the 100+ brokers we cover, fees range from $0 to $40 for trading 10 US stock index options contracts. Even for casual traders, these differences can add up to hundreds of dollars a year. Just think of what else you could buy with that money!

DEGIRO charges a connectivity fee of €5 per calendar month for using US stock index options markets. This fee will be charged for trading and holding positions on these markets, irrespective of the number and size of transactions.

Unlike some brokers, DEGIRO has a charge for the exercise/assignment/cash settlement of options, although it is only €1 per contract.

DEGIRO options fees are volume-based, i.e. the fee you pay depends on the number of contracts you buy. Exchange costs are not included in the commission (for example, exchange costs are SEK3.50/contract for indices on Sweden's OMX exchange).

*DEGIRO charges a connectivity fee of €5 per calendar month for using US derivative markets (CME, CBOT, CBOE, COMEX, NYMEX). This fee will be charged for trading and holding positions on these markets, irrespective of the number and size of transactions.

Compare DEGIRO with its competitors

To compare fees at various brokers, we calculated a benchmark fee for trading different options products. Note that some brokers don't charge a separate fee for closing an options trade - in these cases, we calculated with just half of the opening fee, as most other brokers charge for both opening and closing transactions.

You can also see an overall options fee score, which shows (on a scale of 0 to 5), how favorable the broker's fees are, with 5 being the maximum score (lowest fees).

Check in the chart below how DEGIRO compares to similar brokers in terms of its options trading fees!

To assess whether DEGIRO is a great place to trade options, we took into account several factors beyond merely what you have to pay in trading fees, as that is only part of the story when it comes to options trading. Here's what we checked:

• the number of options exchanges you can access

• the quality of the broker's trading platform (including charting and other research tools)

• the withdrawal fees you pay when you want to access the profits of your trading activity

• your available options for withdrawal methods

In the chart and table below, you can check how DEGIRO compares to some close competitors along these lines, and why we say that it is not an ideal broker for trading options. Scores are on a scale of 0 (worst) to 5 (best).

Looking for the best of the best? Check out our toplist of the best brokers for trading options.

We've rounded up the cream of the crop to help you find a broker that suits your needs perfectly. Whether you're looking for the best overall options brokers, the best options platforms in the US, or brokers tailored for beginners, we've got you covered.

Still missing something? Our knowledgeable AI assistant Nuri is here to answer all your options-related needs.

If you have any questions, Nuri AI can help you!

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