DEGIRO vs. Interactive Brokers: The Ultimate Showdown

Investing is an excellent way to grow your wealth over time, but choosing the right broker to handle your trades can be a daunting task. Two popular options for UK investors are DEGIRO and Interactive Brokers, but which one is the best choice for you?

In this article, we'll compare the two brokers and look at the features that matter most to UK investors, including ISAs and trading fees.

DEGIRO Overview

DEGIRO is a Dutch-based brokerage firm that was founded in 2013. It has quickly become popular among European investors due to its low fees and user-friendly platform. DEGIRO is regulated by the Dutch Financial Markets Authority (AFM) and is a member of the Dutch Investors' Compensation Scheme.

Interactive Brokers Overview

Interactive Brokers is a US-based brokerage firm that was founded in 1978. It has a global presence and is well known for its advanced trading platform and low fees. Interactive Brokers is regulated by multiple authorities, including the US Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA).

Trading Fees

Trading fees are an important consideration for investors as they can significantly impact your returns over time. Let's take a look at the trading fees for DEGIRO and Interactive Brokers.

DEGIRO charges a fee of €2.00 + 0.03% per trade for UK stocks, with a minimum fee of £1.75. For US stocks, the fee is $0.50 + 0.004 USD per share, with a minimum fee of $0.50. DEGIRO also charges fees for certain other services, such as custody fees for non-traded funds.

Interactive Brokers charges a fee of $0.005 per share for US stocks, with a minimum fee of $1.00. For UK stocks, the fee is 0.05% of the trade value, with a minimum fee of £6.00. Interactive Brokers also charges fees for other services, such as custody fees for certain assets.

While DEGIRO has lower fees for UK stocks, Interactive Brokers has lower fees for US stocks. It's important to consider the type of investments you'll be making before choosing a broker.

Platform and Tools

The platform and tools offered by a broker can make a big difference in your investing experience. Let's compare the platform and tools offered by DEGIRO and Interactive Brokers.

DEGIRO has a user-friendly platform that's easy to navigate. It offers basic charting tools and news updates. However, it doesn't offer many advanced features, such as market analysis tools or trading algorithms.

Interactive Brokers, on the other hand, has an advanced trading platform that's geared towards experienced traders. It offers a wide range of advanced tools, such as market scanners, charting tools, and trading algorithms. While the platform may be overwhelming for beginners, it's an excellent choice for experienced traders.

Customer Support

Customer support is an important consideration when choosing a broker. You want to be able to quickly and easily get in touch with someone if you have questions or concerns DEGIRO offers customer support via email and phone, and they also have an extensive FAQ section on their website. However, their customer support is only available during specific hours, which may be inconvenient for some investors.

Interactive Brokers offers customer support via phone, email, and live chat. Their customer support is available 24/7, which is a big advantage for investors who need assistance outside of regular business hours.

Bonus Tip For UK Residents Bonus: ISAs

Individual Savings Accounts (ISAs) are tax-free savings accounts available to UK residents. There are several types of ISAs, including cash ISAs, stocks and shares ISAs, innovative finance ISAs, and lifetime ISAs. Investors can deposit up to £20,000 per year in an ISA and the returns are tax-free.

Both DEGIRO and Interactive Brokers offer stocks and shares ISAs to their UK customers. However, it's worth noting that DEGIRO's ISA is only available to UK residents who have a Dutch bank account. If you don't have a Dutch bank account, you won't be able to open an ISA with DEGIRO. With Interactive Brokers, you can open an ISA easily in the UK.

Conclusion

In conclusion, both DEGIRO and Interactive Brokers are excellent choices for UK investors, depending on your specific needs and preferences. DEGIRO is a good choice for investors who want a user-friendly platform and lower fees for UK stocks. However, their ISA is only available to UK residents with a Dutch bank account.

Interactive Brokers, on the other hand, is an excellent choice for experienced traders who want an advanced platform and a wide range of trading tools. They also offer excellent customer support and lower fees for US stocks.

Ultimately, the best choice for you will depend on your specific investment goals and preferences. It's important to carefully consider your options and choose a broker that meets your needs and helps you achieve your financial goals.