Stability and reliability of DEGIRO

In short, yes, DEGIRO can be trusted, as it is regulated by at least one top-tier financial authority. But is it the best for long-term investment?

If you want to invest for the long term but avoid the hassle of having to switch brokers often, you'll need a broker that will still be around in 10-20 years' time. This is something that's impossible to predict for certain, but a broker's age and its background are among a handful of clues that can tell you about its potential staying power.

DEGIRO was founded in 2,008 and has a banking background. Read on to see what this means for you and how this compares to the rest of the field.

My key findings in a nutshell

My key findings in a nutshell

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 thoroughly tested DEGIRO services with our analyst team by opening a real-money account and these are my most important findings:

• DEGIRO was founded in 2,008; a solid track record that includes surviving the 2008-09 crisis
• DEGIRO has a banking background for added security
• Top-tier regulation is essential; stock-exchange listing is a plus

Data updated on June 17, 2024

The online brokerage market itself is relatively new, so you won't find many players that have been around for decades, unless they started out offline. The last few years in particular have seen a lot of newcomers, especially in the discount broker segment. Still, how long a broker has existed says a lot about its resilience in the face of market troubles and about the strength of its business model.

DEGIRO was founded in 2,008. This hints at a solid foundation that allowed DEGIRO to survive the 2008-09 financial crisis and the frequent market turmoil and increased brokerage competition of recent years. There is a reasonable chance that DEGIRO will last long enough to take care of your long-term investments. Still, it's worth looking at other aspects such as the strength of its regulation or its background (read more on these below).

There are many aspects that can influence your broker choice, including fees, platform quality or the range of products available for trading. But, all other factors being equal, a broker with a longer track record is probably a better choice for long-term investment.

Data updated on June 17, 2024

Yes, DEGIRO has a banking background.

Why is this important? A broker with a banking license (or with a bank as its parent company) means that it has met stricter criteria when it comes to having sufficient capital and handling client deposits. Also, many of the banks that are behind online brokers have operated for decades, a potential sign that their brokerage operations could be around long enough in the future to handle your long-term investments.

Still, having a banking background is not an ultimate guarantee of long-term stability, as banks can also sometimes go bankrupt, or simply make a business decision to cease their brokerage activities.

The majority of online brokers (including most brokers reviewed by BrokerChooser) do not have a banking background, so it probably shouldn't be a make-or-break criterion when selecting a broker. Instead, treat this as an additional layer of security and added proof of long-term broker stability.

Data updated on June 17, 2024

One consideration that should be near the top of your list when sizing up the stability and trustworthiness of a broker is regulation. We at BrokerChooser only feature brokers that are regulated by at least one top-tier financial authority.

DEGIRO is regulated by the following financial authorities: BaFin in Germany.

It is also worth checking whether a broker is listed on a stock exchange. A stock exchange listing requires a broker to disclose its financial information publicly, and in general operate transparently. Having gone through this process is a sign that the broker is taking its mission seriously and is positioning itself to stick around for the long term.

Only a small minority of online brokers are listed on a stock exchange, so you probably shouldn't automatically rule out the ones that aren't. Rather, you should view this as a plus when assessing a broker's long-term trustworthiness.

Data updated on June 17, 2024

Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for buy-and-hold investors.