Degiro Vs Flatex 2022: Finding The Best Broker

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By: Michael Restiano
Updated On: May 26, 2022
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Comparison of degiro vs flatex in 2022 below. The two German brokers, Flatex and Degiro, are often mentioned together, as they work with similar conditions that make their price level the lowest in comparison to common stock brokers.

Comparing both platforms, you will notice that Degiro has significantly lower fees in most cases. When using Flex, you'll end up paying far more for certain simple transactions when compared with Degiro. 

Comparing both brokers is not easy, as there is no such thing as a standard broker. If you want to make an apples-to-apples comparison, you need to add transaction costs (spreads and fees) with the difference in interest rates.

For example, if Flatex provides 1% p.a. - which might sound pretty good for stock trading - you'll end up with less money than if you use Degiro. When you factor in the difference in spreads, Degiro is cheaper even for this small interest rate gap.

What Is Degiro?

Degiro is a Dutch broker established in 2008; it has grown to be one of the biggest brokers available for private investors. Degiro is considered safe as it is regulated by top-tier financial regulators, the Netherlands Authority for the Financial Markets (AFM), and the Financial Services Authority (FSMA).

degiro

Degiro allows Trading in shares and other securities such as exchange-traded funds (ETFs), bonds, options, and derivatives. However, Degiro does not provide direct market access and all the features you might expect from a regular stockbroker like advanced charting or research tools.

Degiro is available for self-directed traders in most European countries, excluding the UK, France, Ireland, and Nordic countries.

How Does Degiro Work?

Degiro's fee structure enforces a basic principle: less money means lower commissions. To make it clear, the Commission Fee is their only fee, and it covers the costs of Trading.

If you want to buy shares or ETFs, you can do so with market orders and limit orders; market and limit orders are free. With these types of orders, you know exactly what commission you pay: 0.01% + €0.02 per deal (€2.00 minimum).

When you use limit orders, Degiro provides price improvement guarantees. This means if the order gets executed at a better price than the one you set, they will compensate their clients by adding extra money to your account.

how does degiro work

To pay a transaction fee is straightforward: first, you should convert currency into euro and then enter the desired amount in euros. If you want to sell stocks, there are two options:

1) Sell all the shares in one order. In this case, simply enter the total amount of money you need after selling your shares.

2) Enter the price for each share that should be sold. In this case, you should add a decimal point before entering the price - for example, if you want to sell at €10.50, enter 10,5 in the price field. If your order is executed, Degiro will charge commission on each transaction separately (e.g., Buy 100 shares at €10.50 / Sell 50 shares at €11).

How To Open A Degiro Account?

  1. Go to degiro.com and click on the "Create Account" button; proceed to the registration page.
  2. Enter personal details, including your residential address
  3. Choose a trading password of at least six characters
  4. You will be sent an e-mail with a link where you need to confirm your account. That's it! You have successfully created your Degiro account.
  5. After that, they let you trade in demo mode. Two credit/debit card details are needed when opening an account: one for the verification process and one to deposit funds and fund your trading account.
  6. There is no minimum funding requirement, and Degiro doesn't charge any funding fees. Credit cards (MasterCard or Visa), iDeal, SOFORT Banking, and GiroPay have supported payment methods.
  7. Now you're ready to trade! Most orders can be placed within 60 seconds through Degiro's web-based platform.

How To Deposit Funds At Degiro?

  1. Log in to your Degiro account and select "Deposit and Withdraw" from the menu.
  2. Select which currency you want to deposit, e.g., Euros, Bitcoin, or UK Sterling Pound, etc.,
  3. You can now enter the amount of money you wish to transfer as well as add a reference if required, e.g., your bank account or IBAN number.
  4. Please note that you can't deposit other cryptocurrencies such as Litecoin, Ethereum, and Ripple at Degiro.
  5. Once you have entered all of the required information, click on "Deposit" to submit your order.
  • Credit/debit cards are not supported by Degiro for funding your account at this moment.
  • Banking transfer is the most common method of depositing money into an online trading account.

How To Make A Withdrawal Or Sell At Degiro?

  1. Log in to your Degiro account and select "Deposit and Withdraw" from the menu.
  2. Select which currency you want to deposit, e.g., Euros, Bitcoin, or UK Sterling Pound, etc.,
  3. You can now enter the amount of money you wish to transfer as well as add a reference if required, e.g., your bank account or IBAN number.
  4. Click on "Withdraw" and select a withdrawal method from the list. The methods available will depend on what currency you are withdrawing.
  5. Enter your bank details and transfer the money using your preferred method of payment.
  6. You should receive a confirmation message in a matter of seconds confirming the transaction is complete.

What Are The Security Measures Of Degiro?

Before you can trade at Degiro, you need to verify your identity. To do this, you will need to provide additional details such as your full name, current address, and date of birth when signing up.

You also need to upload an electronic copy of one form of identification (e.g., passport or bank statement), a proof of address (e.g., bank statement), and a selfie of you in front of your computer screen showing the required information in order to prove it's your account.

You can choose to activate two-factor authentication when logging into your account, which means you'll need an extra code to gain access. You can use Google Authenticator or any other app to generate this code. Also, you can set up a four-digit pin code to protect your account with enhanced security.

What Are The Security Measures Of deigro

Degiro uses SSL encryption to provide secure access and communication between your computer and Degiro. Your personal information is protected by an electronic firewall that prevents unauthorized use of your data. All passwords are hashed using BCRYPT, meaning two things; firstly, they cannot be easily reversed, meaning you are protected against brute force attacks.

Secondly, this means your password can't be stolen or corrupted by malware like some other forms of hashing algorithms, such as MD5 (a widely known compromised algorithm). Degiro is regulated in the Netherlands and is supervised by AFM and DNB.

All Degiro employees must pass a background check and go through stringent security measures to be able to access systems and data.

Degiro uses state-of-the-art technologies such as encryption, software firewalls, and cloud computing while ensuring all transactions are carefully monitored on a 24/7 basis. Any suspicious activity is immediately reported to authorities and investigated accordingly.

Degiro has been independently verified as being compliant with ISO 27001, an internationally recognized information security management standard approved by the International Organization for Standardization (ISO).

How To Buy Shares At Degiro?

To enter an order, you can go to Trading> New Order. First, select the instrument and quantity. Next, decide which type of order you want to place by checking the appropriate box. The last step is to define your price limits for the trade as well as how long it will remain active (day, good till canceled or GTC, or good till the end of the month).

How Long Does It Take To Buy Shares At Degiro?

It takes one business day for the order to be executed after the market open. If you're buying during market hours, your order might be filled immediately if there are enough orders on the order book.

What Are The Deposits And Withdrawal Methods At Degiro?

You can use popular payment services such as iDeal, Bancontact/Mister Cash, SEPA transfer, Sofort Banking, Amazon Pay, and Bitcoin. Once your bank transfer is approved, it will typically take one business day to withdraw money from your account.

How Is The Customer Support Service Of Degiro?

Degiro has a fast and reliable customer support service. Phone customer support is available 24 hours a day, seven days a week. You can also e-mail or contact them through live chat options.

Documentation is easy to follow, so you won't have any trouble setting up your account if you need assistance. Services are available in English, French, German, Dutch, Polish, and Turkish.

What Does The Degiro Platform Look Like?

Degiro has a basic platform that only includes the most necessary tools to complete trades. There are no in-depth analysis or charting tools, but it does have all the basic functionality you need, including real-time quotes and alerts.

The color scheme is blue and white with clean lines for an easy-to-read interface. Degiro has a very simple and straightforward design, so you can easily navigate the platform and place trades. The screen is divided into four separate windows.

The first window is for market data, where users have access to the current prices of all the listed securities and includes a list of companies trading on this platform, a sortable quote board, and a news ticker.

The second window is for charts that show various types of charts such as bar, line, candle, mountain range, and various other types of technical indicators. You can drag and drop these charts into separate windows if you'd like, making them easy to customize.

The third window is for order management, where users can place limit or market orders depending on whether they want their trades executed immediately or not. The fourth window is the trade ticket, where users can view all the details of their orders.

Who Should Use Degiro?

Degiro is a great choice for investors who want to trade on an international stock market and only need the most basic tools. Due to its low transaction fees, fixed-cost portfolio trading can also be a good fit for those who like the idea of commission-free investing.

Customers who are looking for advanced charting or the ability to trade options, commodities, and other complex instruments will find it is missing these features.

Customers who like automated trading functionality with alerts and notifications may also be disappointed with what Degiro has to offer in this area.

For investors who want a no-frills platform that focuses on low prices and international access, Degiro is a good choice. Potential users should also consider that this brokerage has fewer clients than some competitors, which means support may be more difficult to reach.

The platform is very simple and easy to understand, so it's a good choice for beginning investors. If you want an online broker experience with simple tools and cheap trades, Degiro is a great option since there are no hidden fees or minimum account balance requirements.

What Is Flatex?

Flatex is a German online broker established in 1999. It has grown over time to be Germany's biggest stockbroker. Flatex is considered safe as it's regulated by BaFin - Germany's top-tier financial regulator. 

Flatex offers Trading in shares and other securities such as ETFs, bonds, options, and derivatives. The trading platform is advanced and enables trade with market orders, limit orders, or stop-loss orders.

flatex

As for research tools, you can use fundamental data that is available on the website of many companies on Flatex's screener. Also, if wanted, you can use your own fundamental data from an Excel file to build a price chart. Flatex is available for self-directed traders in Germany, Austria, and Switzerland.

How Does Flatex Work?

Flatex offers mostly market orders and limit orders, but there is a third kind of order: stop loss and trailing stop. Stop and trailing stop orders enable you to automatically exit your position when the market goes against you. You can also decide how much should be executed at one time - it could be 10%, 25%, or 50%.

Flatex fee structure is simple, commission for market and limit orders is €9.90 per trade (€0.99 with a premium account), and the minimum number of shares to be traded is 1.

It's worth mentioning that where Degiro has price improvement guarantees when using limit orders, Flatex only has price protection when using a stop loss/trailing stop order.

When you sell shares on Flatex, you have two options:

1) Sell all the shares in one order. In this case, simply enter the total amount of money you need after selling your shares.

2) Enter the price for each share that should be sold. If your order is executed, they will charge a commission on each transaction separately (e.g., Buy 100 shares at €10.50 / Sell 50 shares at €11).

How To Open A Flatex Account?

  1. Open your trading account at Flatex. Please follow the simple steps mentioned on the flatex.com website or watch the video here to open your account quickly and easily.
  2. Send us a copy of your passport/ID card and proof of address (current bank statement, the electric bill, etc.) at info@flatex.be.
  3. Verify your identity with one of the methods listed on the flatex.com website.
  4. You are now ready to trade! Place an order through our Online platform or call our team for assistance by phone at +32 56 800 999 (Mon-Fri 8:00-18:30).

How To Deposit Funds At Flatex?

  1. Log in to your Flatex account and select "Deposit" from the menu.
  2. You can choose to deposit by bank transfer or credit card (credit cards are currently not available at Flatex).
  3. Select the type of payment method you would like to use and tick "I agree" if you accept Flatex's terms of service.
  4. Enter the amount you wish to deposit, including any additional information.
  5. Click "Confirm" to complete the transaction, and you should receive a confirmation message in a matter of seconds confirming the transfer is complete.
  6. There are no minimum funding requirements at Flatex, but there are some fees when making deposit/withdrawal transactions.

How To Make A Withdrawal Or Sell At Flatex?

  1. Log in to your Flatex account and select "Withdraw" from the menu.
  2. You can choose to withdraw by bank transfer or credit card (credit cards are currently not available at Flatex).
  3. Select the type of withdrawal method you would like to use and tick "I agree" if you accept Flatex's terms of service.
  4. Enter the amount you wish to deposit, including any additional information.
  5. Enter your bank details and transfer the money using your preferred method of payment.
  6. You should receive a confirmation message informing you that the transaction has been successfully completed.
  7. Flatex charges fees for withdrawing or selling cryptocurrencies such as Litecoin, Ethereum, and Ripple at this moment.

How Safe And Secure Is Flatex?

Flatex is authorized and regulated by BaFin, the German financial regulatory authority. All customer data is fully protected with industry-standard SSL encryption. Funds are kept in segregated accounts that can only be accessed by the client who owns them.

Sophisticated firewalls protect your data against intrusion, and daily backups mean customer data is never lost. Transaction monitoring systems ensure all orders are executed according to strict risk management policies, which means you can trade without worrying about your money.

How Safe And Secure Is flatex

Flatex also employs all of the reliable authentication methods to provide you with security when Trading, depositing, or withdrawing money.

Flatex is regulated in Germany and supervised by BaFin (the German financial regulatory authority). All employees are required to pass a background check before they can work for Flatex.

Flatex realizes how important it is to protect its customers' privacy and ensure the security of their personal information. That's why they use state-of-the-art technologies such as encryption, software firewalls, and cloud computing while ensuring all transactions are carefully monitored on a 24/7 basis.

Any suspicious activity is immediately reported to authorities and investigated accordingly. As an extra measure, Flatex employs a dedicated customer service team to assist you with any questions or concerns you might have.

Flatex also offers additional security measures for their customers who are active on social media sites, such as Twitter and Facebook.

How To Buy Shares At Flatex?

Flatex offers a step-by-step process of buying stocks.

  1. The first step is to select the type of order you want to place, your preferred trading style, and the range of time you want the order to remain open.
  2. Typically, a market order can be used to buy or sell shares at the prevailing price. However, if you want to buy or sell a large number of shares and you don't mind the price, you can place a limited order.
  3. Once you select your order type and trading style, you need to decide how long you want the order to remain active. Your choices include: good till canceled (GTC), good for the day (GFD), and good for the end of the month (GOE).
  4. If you select a limit order and you want to set a price, you can do it at this stage. If not, the online broker will automatically calculate the best bid and ask prices based on your order type and trading style.
  5. The next step is to enter the number of shares you wish to buy. Enter the number of shares you want to purchase in the "Quantity" box and select whether you wish to pay for them with cash or leverage. Leverage allows investors to borrow money from their online broker so they can place larger trades than they have enough funds for.

How Long Does It Take To Buy Shares At Flatex?

Flatex prioritizes limit orders over market orders to minimize transaction costs. This means that it can take up to 3 days for your order to be executed, depending on the availability of bids and offers in the marketplace at the time.

What Are The Deposits And Withdrawal Methods At Flatex?

Flatex allows customers to deposit using bank transfers, credit/debit cards, Sofort Banking or Paypal. Withdrawals can be made to your bank account (Belgium, Germany), credit card (Germany only), or to the Paypal account associated with your brokerage.

How Is The Customer Support Service Of Flatex?

Flatex offers a wide range of options for client support. You can easily access customer service with live chat, telephone, and e-mail. Flatex also has a user forum where you can interact directly with other traders or ask questions to the Flatex team.

Documentation is available on the website and in PDF documents and is easy to follow. Flatex offers a variety of languages, including English, Spanish, French, Italian, and Dutch. There is also a multi-language service telephone number available in certain countries.

What Does The Flatex Trading Platform Look Like?

Flatex offers a well-designed trading platform called "Webtrader" that is available in English and Italian versions. The Webtrader interface allows customers to place market, limit and stop orders and set alerts and notifications.

This platform also includes advanced charting capabilities, customizable watch lists, trade history, and a selection of technical analysis tools to help investors make informed decisions.

Flatex offers an easy-to-use interface with a clean design, so you can quickly locate functions and place trades. The colors are white and green, making the platform appear less cluttered than Degiro. The screen is divided into four sections: market data, watch list, trade ticket, and account information.

flatex platform

The market data section is the largest section on the page. It includes all the necessary tools to place trades and review the current prices of listed securities and quotes.

In Watch List, you can add stocks, indices, and ETFs directly from the Webtrader platform or by accessing your personal watch list. You can also adjust any symbols you aren't interested in and remove them from your watch list.

The watch list allows you to monitor the price movement of your chosen securities and compare the current performance to previous time periods.

The trade ticket is where users place orders on the Webtrader. You can also use this same window to access all your open trades, cancel or modify pending orders, or view your order history. Account Information

Account information is located in the last section. It shows all your open and closed trades, a summary of your account, and a detailed breakdown of all the fees you have paid so far during this time period.

Who Should Use Flatex?

Flatex is a good choice for investors who want more advanced charting capabilities and additional investing tools in their portfolios. The platform is easy to use, so it's also a good fit for beginning investors who want their first online brokerage experience to be intuitive and user-friendly.

Customers who are looking for great customer service should consider that Flatex has fewer contact options than some competitors, though the service representatives are very knowledgeable and quick to respond.

Flatex is a great choice for investors who need to manage their portfolios from multiple locations because it offers apps for both iOS and Android.

Investors who already have European stock market experience will find the experience familiar, making this brokerage a good choice if you want a seamless transition between trading stocks in your home country and investing internationally.

It is also a great option for customers looking to trade on an international stock market and who need access to advanced trading tools.

Both platforms offer low prices, but Flatex offers more active trading tools, including conditional orders and stop-loss features. Advanced traders will appreciate the comprehensive portfolio management functionality and advanced charting capabilities of this broker.

As long as you aren't a beginning investor, Flatex offers a more robust online trading experience for your personal investing needs.

What Types Of Orders Do Degiro And Flatex Offer?

Flatex offers 10 different order types: market, limit, stop-loss, stop-limit, immediate or cancel (filled immediately at the best available price), fill or kill (good for large orders as it is executed at the best available price, or it is canceled), bracket (buy and sell orders with a predefined difference in price), near month, good till day X (valid for one trading day), and good till date which is valid until you manually cancel.

Market Order:

The simplest order type. When you place a market order, you buy or sell at the current market price. For example, if the market price is $10, you will pay $10 for each share.

Limit Order:

This order type allows you to specify the maximum price at which you're willing to buy a security and/or the minimum price that you're willing to sell a security.

For example, if Apple's current price is $100 per share, you can place a limit order to sell your shares at $90 per share. When placing an order, you indicate how long it will remain active by selecting one of four options: 

  1. Good Till Cancelled - The order is valid until you cancel the request or the security's trading hours have ended.
  2. Immediate Or Cancel - The order is filled partially or in full as soon as possible, and the unfilled portion is canceled.
  3. Fill Or Kill - The order will only be executed if it can be filled immediately in its entirety. If it can't, the entire order is canceled outright.
  4. Keep In View - This option allows you to keep your order active while you're waiting on a better price (known as "standing aside"). If the price moves in your favor, you can convert it into a limit order for better control.

Stop-Limit Order:

A stop-limit order combines the features of a stop order and a limit order. When you place this type of trade, your stop-limit order becomes active only when the stock's price meets both the stop and the limit prices that you defined for it.

For example, you place a sell stop-limit order to sell your Apple shares at $100. The order will be executed only if the price of Apple falls to $100 or below.

Stop-Loss Order:

If you already own a security, you can use a stop-loss order to limit your losses when the price of a stock starts to drop. For example, if you buy AAPL for $100 per share and place a sell stop-loss order at $90, the order will be executed only if the price falls below $90.

This order type allows you to define a maximum loss limit for the security. The selling price of the shares is set at the strike or breakeven level, which should be below the current market price.

If the maximum loss limit is reached, your shares will automatically be sold at market prices. The risk associated with this strategy is that you may not be able to sell your shares at the strike price if it's too close to the current market prices.

Degiro does not offer more complex orders such as trailing stop, one cancels other (OCO), fill and kill (FAK), or hidden order.

Now that we have learned about both the brokers let us understand what brokers are and how they work.

What Are Online Brokers?

Online brokers, also known as discount brokers or trading platforms, allow you to buy and sell financial products such as equities and bonds without visiting a branch. In addition, online brokers provide clients with a platform to access a broad range of markets from anywhere at any time.

What Is The Role Of An Online Broker?

In contrast to traditional brokerage firms, online brokers do not offer financial advice. As such, they only aim to provide their clients with the best available prices for trades that can be carried out directly on a trading platform or via an app.

How Does An Online Broker Work?

Online brokers charge clients directly for each trade. As a result, they do not require you to hold an account with them. Instead, investors are provided with their own trading accounts and can use the broker's platform or app for placing trades (which is far cheaper than working through a human broker).

While online brokers offer affordable prices and many advanced features, there are several factors to consider before working with a particular broker.

What Should You Look For When Comparing Brokers?

Before choosing a broker, it is important to understand whether or not they suit your trading needs. For instance, if you want to invest in forex and cryptocurrencies – you will need a web-based platform instead of a mobile app. In addition, you should consider the following factors:

Deposit And Withdrawal Fees:

You will need to pay a fee for depositing funds into your account and withdrawing them. Since online brokers do not provide financial advice, they charge lower commissions than traditional brokers (which is why it makes sense to work with an online broker).

Minimum Deposit:

Most online brokers require a certain minimum initial investment. This means that you need to deposit a certain amount of money before their platform becomes available for use.

Account Opening:

Before choosing a particular broker, it is important to see how much information they require and what conditions must be met in order to open an account.

Customer Service:

The availability of customer support representatives can be a significant factor for some investors. In addition, different brokers have different working hours – you should ensure that your chosen broker provides assistance during the times you are going to use their products.

Tools And Assets:

Different brokers offer a range of tools that will help you choose financial products, choose the right time to trade them, and monitor your investments. While some brokers only offer their clients access to one market (e.g., international equities), others provide you with access to multiple markets (in addition to advanced trading tools).

Education And Research:

Consider the educational resources that are available to you. These include webinars, articles, and videos on investing strategies. You might also want to look for an auto-trading feature (which is convenient for beginners).

Types Of Orders:

You should also consider how much flexibility you have when placing orders. Oftentimes, online brokers provide several kinds of order types (for instance, market, limit, stop-loss, etc.). Furthermore, some brokers offer their clients different kinds of orders based on the amount they are willing to invest.

Fees For Advanced Features:

Before firm a broker, it is important to see what kind of fees will be applied for using advanced trading tools. For instance, if you want to use margin trading – this could cost additional fees, so make sure to check whether or not the broker you want to work with offers this kind of service.

Security:

Your chosen broker should provide a safe environment for you and your assets. You should look into how secure their website and trading platform are before choosing which broker to work with. Privacy: Online brokers usually follow strict regulations when it comes to user privacy.

As a result, it is important to make sure that you are provided with all the information about your account and assets in order to be able to work with your broker seamlessly.

Regulatory Oversight:

Some investors prefer working with brokers who are supervised by specific regulatory authorities (e.g., CySEC or FCA). This is particularly important if you want to work with a regulated broker.

Price:

Finally, when choosing a broker – compare their prices and see whether or not they suit your needs in terms of features and fees. Following these factors will help you choose the right online broker for your investment needs.

Conclusion:

By considering the above-mentioned factors, investors should be able to find an online broker that suits their needs. By doing so, it will be possible to trade freely and monitor your investments without any difficulties.

In a nutshell, Degiro and Flatex are online brokers which provide their clients with access to an extensive range of markets, tools, and assets as well as other services. While Flatex provides its clients with a friendly environment and user-friendly interface – Degiro brings lots of significant benefits such as low prices and advanced trading tools.