At DEGIRO you can rest assured that your investments are held securely. DEGIRO uses a separate custodian entity to hold your assets, meaning that they are 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.
|On Balance Sheet||Held separately|
|Shares & Bonds|
|Money Market Funds|
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. Since this carries forth a risk, the deposit guarantee system is available for banks.
Because DEGIRO is not a bank, it is not allowed to hold the money of clients on its own balance sheet or use it for its own investments. You thus do not keep money at DEGIRO. Money that DEGIRO receives from you is immediately invested (based on a standing order) in a Money Market Fund.
Money Market Funds are investment funds that aim, with as little risk as possible, to achieve a return that is equal to the regular market rate in the currency concerned. The value of these funds may fluctuate, just as with any other investment. If you do not want to invest or invest less in Money Market Funds, you can invest the value 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 from the fund issuer and therefore do not run any risk in the event of bankruptcy of DEGIRO or the issuer. For more information about Money Market Funds you can click here.
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. Information about the Dutch Investor Protection Scheme can be found in English on the De Nederlandsche Bank (Dutch Central Bank) website here.
DEGIRO operates under behavioural supervision of The Netherlands Authority for Financial Markets (AFM) and the prudential supervision of the Dutch Central Bank (DNB). DEGIRO is also registered at the Financial Conduct Authority (FCA) in the UK under number 595455.