At DEGIRO you can rest assured that your investments are held securely. DEGIRO uses a separate custodian entity to hold your assets, this means they are completely segregated from the assets of DEGIRO. The sole task of the custodian entity is to administer and safeguard your investments. By law it cannot perform any commercial activities. In the unlikely event that something is to happen to DEGIRO, your investments will not be treated as recoverable assets to DEGIRO's creditors, but will remain in the safeguarding of the custodian entity.
DEGIRO is not a bank but an investment firm. A bank may use the money that clients keep with it for its own business purposes, loans to third parties and other investments. If this goes wrong, your money is lost. You therefore run a risk with the bank. As this is a real risk, the deposit guarantee system is available. Because DEGIRO is not a bank, DEGIRO may not use the money that it holds for its clients for its own investments. All money flows run via a separate entity.
DEGIRO immediately exchanges (on an continuous basis) the money that you transfer to one of the Money Market Funds. The Money Market Funds are investment funds that aim, with as little risk as possible, to achieve a yield that is slightly below the regular market rate in the currency concerned. For more information concerning the investments in the Money Market Funds you can click here.
You do not keep money at DEGIRO. Money that DEGIRO receives from you is immediately invested in a Money Market Funds. The value of the Money Market Funds may fluctuate, just as with any other investment. If you do not want to invest or invest less in the Money Market Funds, you can invest the value of your investments in the Money Market Funds into other Financial Instruments of your choice. Or you can give DEGIRO the instruction to book money back to your bank account.
All assets within the Money Market Funds are held separately by an independent legal entity and therefor does not run any risk in the event of bankruptcy of DEGIRO.
The Dutch Investor Protection Scheme (Beleggerscompensatiestelsel) is applicable, as DEGIRO is a licensed investment firm authorised by the Netherlands Authority for the Financial Markets (AFM) for the provision of investment services.
This scheme protects individual clients up to €20,000. Information about the Dutch Investor Protection Scheme can be found in English on the De Nederlandsche Bank (Dutch Central Bank) website here.
DEGIRO is a Netherlands based licensed investment firm and as such is under the financial supervision of The Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB).
To see our license, please check the register of the AFM here.
DEGIRO performs it licensed investment services abroad from The Netherlands, under the so-called ‘MiFID passport’ or ‘MiFID-cross-border service’ regime. DEGIRO is also included on the Financial Conduct Authority (FCA) register in the UK which can be found here.