YOUR INVESTMENTS ARE SAFE WITH DEGIRO
You can invest safely with DEGIRO. Your investments are 100% segregated and held within a separate custodian entity. This means all of your assets are safely segregated from DEGIRO BV, the company behind DEGIRO. This custodian’s only tasks are the administration and safekeeping of your investments. As required by law, it performs no other activities. In the unlikely event something happens to DEGIRO, client assets will be returned to the clients rather than being treated as recoverable assets. The money is ring-fenced, safely held in the capital of the custodian and not mixed with DEGIRO assets.
The level of asset protection and the status of investments is something many existing investors remain unaware of with their existing broker.
In contrast to a traditional banking environment, at DEGIRO you do not have to worry about our creditworthiness.
At DEGIRO all of your investments (including derivatives) are held safely in a separate custodian entity. However, we go one step further to make sure that your money is even more secure. We place your funds into a 'FundShare Cash Fund' for you free of charge. This service is provided entirely automatically and you will not notice any difference to your account in any other respect. In this way your money is entirely separated from DEGIRO and any third parties. Only if you invest in Derivatives with DEGIRO, or make use of the 'Debit Money' or 'Debit Securities', may we transfer your money to a 'Margin Cash Fund'. The investments in a 'Margin Cash Fund' can be used as surety for the positions that 'Beleggersgiro' contracts for clients with third parties. For further explanation, please see the ‘Investment Services’ document in the Investment Services Information.
Interest is received on money held within the 'Cash Fund'. For the GBP Cash Fund, this equates to the LIBOR GBP Overnight Index with a maximum deduction of 0.50% on an annual basis. LIBOR stands for ‘London Interbank Offered Rate' and in the past 10 years it has fluctuated between 5.60% and 0.47%. In the worst-case scenario, you will receive zero interest as a result of this deduction.
Investor Compensation Scheme
Under Dutch law there is an investor compensation scheme, for firms like DEGIRO the amount guaranteed is €20,000. However, in our eyes this scheme is unnecessary for clients of DEGIRO due to the presence of the custodian and cash fund.
Who supervises DEGIRO?
DEGIRO operates under the regulatory capital supervision of the Dutch Central Bank (DNB) and under the general regulatory scope of The Netherlands Authority for Financial Markets (AFM). DEGIRO is also registered at the Financial Conduct Authority (FCA) with number 595455.