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Cash 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. 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 monetary flows run via SPV (the custodian entities). DEGIRO immediately exchanges money that you transfer to the Central Account of Stichting DEGIRO (SPV Long-Only) for Units in one of the Cash Funds. The Cash 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. Please read the ‘prospectus’ and ‘key investor information document’ for more information on investments and related risks in the Cash Funds, this information can be found on the website of the fund manager.

All assets in the Cash Funds are held completely segregated by a legal entity that is independent from the manager of that fund and run no risk in the event of the bankruptcy of DEGIRO or of the manager. Your money is therefore just as safe at DEGIRO as your investments.

When opening an account on our UK platform, your account will denominated in GBP and linked to a GBP bank account. At DEGIRO foreign currency transactions can be handled in two ways; using the AutoFX trader or holding foreign funds manually.

With AutoFX (default), we take the hassle out of currency conversion, you place the order and we will automatically convert the required amount. You will only have a single cash fund position in GBP. Purchases will be charged in GBP and proceeds from sales of foreign products will then convert back into GBP.

With Manual currency holding, you have the possibility to manually purchase foreign currencies. If you frequently trade in foreign currencies the Manual function could be the most cost-effective option. When the manual function is turned on for a particular currency, a cash position will be held in the foreign currency.

Yes. You can hold a balance in any currency that you choose Manual currency handling.

If you choose to deal with Manual currency holding there are a few points to consider:

  • With Manual holding turned on for a currency, purchases will no longer be charged in your base currency. As, such it is possible to run a negative balance in another currency. You can review your Cash Fund Overview by clicking on the cash funds value on your portfolio.
  • Because most of the fees that DEGIRO charges are levied in the base currency of your account (GBP for the UK platform). As such it is necessary to keep a sum of money in GBP on your account to cover these fees. Otherwise it may be possible for an order to be rejected in the case that the commission fee cannot be levied.
  • If you switch from Manual to AutoFX then any foreign currency will be converted back to the base currency of your account.
  • When making a withdrawal, funds must be converted back into your base currency.

When using AutoFX, the exchange rate you receive will be the spot rate + 0.10%.

Further details can be found on our Fee Schedules for Basic/Active/Trader and Custody profiles.

Yes. To manually convert a lump sum of funds to a foreign currency, you can go to the Orders tab and then select Currency Transaction. To do this, you must choose to Manually hold this currency prior to making the conversion. The cost for this service can be found on our Fee Schedules for Basic/Active/Trader and Custody profiles.

DEGIRO offers clients the possibility to manually execute currency transactions bigger than €10,000 during the period from Sunday 22.00 (UK time) till Friday 22.00 (UK time), which can be done via the WebTrader. For orders smaller than €10,000 we use different time periods. These can be done daily between 7am (UK time) and 9 PM (UK time) from Monday through Friday.

Your Portfolio Result panel will show two values:

  • Cash Funds: your positive balance in Cash Funds;
  • Available to Trade: the amount that you can use for additional investments.

For Basic and Custody profiles, this value is the same as no additional Debit Money (margin) is offered.

For Active, Trader, and Day Trader profiles, this value can be different as additional margin may be available.

When a negative amount is shown in the value Cash Fund, this means that you are in debit and you are liable for interest payments in accordance to your current debt allocation.

At DEGIRO you can obtain debit money at extremely low rates through the use of allocation. The costs for the allocated amounts can be found on our Fee Schedules for Basic/Active/Trader and Custody profiles.

Non allocated debit funds are available at an annual rate of 4%. Interest costs are charged monthly.

DEGIRO offers a very attractive rate over negative cash balances if the amounts are allocated. By allocating you are allowing us to timely budget these funds externally, resulting in this lower rate.

It is possible to allocate online in the Web Trader.

Step 1: Click on blue button “Adjust” at the navigation bar in the Web Trader.

Step 2: Go to the tab Settings

Step 3: Select "Allocation"

Step 4: Choose the option '' Add new allocation '' select the currency, enter amount and press the green button.

You will see the following message:

The allocation will start at the first day of the following month. During the month you are able to change your allocation. The last allocated amount will become your '' current allocation” after 23.59.59 hours on the last day of the month.

If you wish to terminate your allocation, you must allocate zero at corresponding currency by pressing the trash button. Your allocation will then be changed to a new allocation of 0. Changing the allocated amount can be done in the same way.

Be aware that allocation only provides a low interest rate for the corresponding amount and is not an approval for a negative balance of this amount. Our margin model calculates the maximum allowed negative balance based on the positions in portfolio.

The interest rate on balance in GBP consists of ‘Reference GBP Rate’ and ‘Reference GBP Spread’. The minimum interest rate is 0.

FundShare GBP Cash Funds
Reference GBP Rate LIBOR
Reference GBP Spread minus 0.50%

Please be aware that the current reference rate used by the Cash Funds can change depending on the Fund Manager. Further information on DEGIRO’s cash funds can be found here.