Degiro vs Flatex 2024 [Secure Your Financial Future]

Over the years, investing has gone through a significant transformation, with numerous trading platforms rising to the occasion. Among these many online brokers, two have stood out as the leading contenders - Degiro vs Flatex.

As an experienced investor, it's imperative for me to analyze and weigh the pros and cons of these popular trading venues to determine which platform offers the best tools, pricing, and user experience to suit my ever-growing financial needs.

Choosing between Degiro and Flatex is no easy task as both platforms feature their unique perks and advantages. We all know that selecting the right broker can be a game changer in our journey towards financial success, whether we're trading stocks, bonds, ETFs, or dipping our toes into the rapidly flourishing world of cryptocurrency.

In this blog post, I will be providing an in-depth comparison of Degiro vs Flatex to assist you in making an informed decision about the platform you'd prefer for achieving your financial goals. So, sit back, relax and let me share my personal insights into the world of online trading platforms through this engaging and reader-friendly discussion.

Understanding Degiro: What Does It Offers?

Degiro is a leading online European brokerage that was founded in the Netherlands in 2013. With an aim to provide low-cost, efficient services to individual and institutional investors, Degiro has quickly gained popularity among traders.

The platform offers access to a wide range of assets, including stocks, bonds, ETFs, options, futures, and a limited number of cryptocurrencies.

Among its key features, Degiro provides:

• High-quality trading tools
• Competitive pricing
• Strong security measures
• A user-friendly interface

Degiro's extensive market accessibility and affordability make it an attractive option for investors seeking to maximize returns and minimize costs while also enjoying great liquidity in their investments. However, its limited selection of cryptocurrencies may be worth noting for those interested in trading more digital assets.

Flatex: What Is It All About?

Flatex is a well-established German online broker that has been providing services to investors since 2006. Catering to both retail and institutional clients, Flatex offers a diverse range of investment opportunities, including international stocks, bonds, ETFs, mutual funds, options, and futures.

Despite its many offerings, Flatex currently does not support trading in cryptocurrencies.

Noteworthy traits of Flatex include:

• An extensive range of investment products
• Comprehensive trading tools and research
• Leverage options for certain account types
• An intuitively designed trading platform

Flatex brings together a broad spectrum of tradable assets and sophisticated resources, presenting investors with exceptional opportunities for growth. However, the platform's lack of support for cryptocurrency trading could be a limitation for those seeking exposure to the digital asset market.

Flatex's Acquisition of Degiro

In 2019, Flatex announced its intention to acquire Degiro. The takeover was finalized in July 2020, signaling a new era of growth for both companies. The primary goal behind the acquisition was to create a leading European online broker with an even broader range of products, services, and technological innovations.

This synergy allows the combined entity to offer an even more competitive platform by capitalizing on Flatex's expansive investment options, while still benefiting from Degiro's cost-effective pricing structure.

The acquisition also aims to strengthen the group's presence in the European market and cater to a broader range of investor needs.

Despite being competitors, the coming together of Degiro and Flatex offers a powerful platform that balances diverse trading opportunities with low-cost, user-friendly solutions for investors across Europe.

What Makes Degiro and Flatex Competitive?

Degiro and Flatex are both prominent European online brokers, providing a wide range of investment opportunities and robust trading platforms. Their competitive edge emanates from a combination of factors, including:

Diverse Investment Options

As mentioned earlier, both Degiro and Flatex offer access to an assortment of assets like stocks, bonds, ETFs, options, and futures. By catering to various investment preferences and risk portfolios, they manage to attract different types of investors.

Affordable Pricing

One major factor driving their competitiveness is their attractive pricing schemes. With both platforms providing relatively low fees and diverse commission structures, investors can maximize their investment returns while minimizing trading costs.

User-friendly Platforms

Degiro and Flatex boast intuitive trading platforms designed to cater to investors of all experience levels. Their platforms offer an easy-to-navigate interface, advanced research tools, and educational resources that help users make informed decisions.

Security and Reputation

In the world of online trading, a platform's reputation and security play a crucial role in attracting customers. Both Degiro and Flatex have strong security measures in place and have garnered a positive reputation within the European financial market.

Degiro vs Flatex: Which Is Better For You?

When considering Degiro and Flatex for your investment needs, it is crucial to analyze factors like fees, investment options, user experience, and customer support, etc; in order to make an informed decision that aligns with your personal preferences and requirements.

Account Opening And Overall Platform Functionalities

• Degiro: As hinted at, Degiro has a smoother account opening process. They streamline the entire process to ensure that new users can efficiently set up their accounts. With a user-friendly interface, submitting verification documents and completing the registration takes minimal effort. Moreover, after passing the necessary checks, your account will typically be approved within two business days.
• Flatex: While Flatex's account opening process is still convenient, it may not be as seamless as Degiro's. Registering for a Flatex account necessitates filling out an online form followed by verification steps involving ID confirmation through video chat. Additionally, new users must wait for postal approval which takes longer than Degiro's approval process.

Types of Accounts

• Degiro: Degiro offers five different types of accounts to meet diverse trading styles and objectives:

1. Basic
2. Custody
3. Active
4. Trader
5. Day Trader

Each type has varying levels of functionality and access to financial instruments like leverages and short selling options.

• Flatex: Unlike Degiro, Flatex provides clients with only one type of account – the 'Cash' account – encompassing all its trading functionalities in a single offering. However, this account comes with built-in leverage features for qualifying clients based on their trading experience.

Overall Account Functionalities

While both platforms offer many similar features to their clients regardless of their specific account types or selections, it's worth mentioning some notable differences between Degiro and Flatex in terms of overall account functionalities:

Feature	Degiro	Flatex
Leverage Availability	Depends on account type	Yes (built-in)
Custody Services	Yes (Custody Account)	No
Short Selling Options	Depends on account type	Yes
Options and Futures Trading	Available for certain accounts	Yes

Degiro and Flatex bring unique propositions to the table. For investors seeking flexibility in their account types with varying degrees of risk exposure, Degiro is an enticing option.

However, if you'd prefer a more streamlined, centralized experience with built-in leverage features, Flatex could be the broker for you. Make sure to weigh the pros and cons carefully in terms of your individual trading preferences and objectives before making your final decision.

Trading Tools

When it comes to trading tools, both Degiro and Flatex offer a comprehensive suite of resources and functionality that cater to traders of all levels. However, there are some key differences in their offerings when it comes to platform functionalities and available research.

Platforms

• Degiro: Its trading platform WebTrader is designed with user-friendliness in mind. The web-based interface is easy to navigate, allowing users to quickly access information on trades, charts, and other important data. Although the platform doesn't offer sophisticated tools like scripting or algorithmic trading, it does boast an advanced mobile app that offers similar features as the web version for on-the-go trading.
• Flatex: The Flatex Trader 2.0 platform caters to more experienced traders with its robust features and customizable workspace. Offering various advanced charting tools, real-time data streams, and technical indicators; Flatex Trader 2.0 also supports a wide range of order types like limit orders, stop orders, and trailing stops. Besides its in-house platform, Flatex integrates with MetaTrader 4 (MT4) – a popular and feature-rich trading software embraced by advanced traders globally.

Research Tools

• Degiro: While Degiro offers basic research tools – news feeds, insider trades data, analyst ratings – its services might not be comprehensive enough for seasoned traders seeking more in-depth analysis. Furthermore, important research components such as fundamental data or financial statements might be missing for certain exchanges.
• Flatex: In terms of research facilities, Flatex stands out by providing extensive research resources via various premium partners such as Morningstar™️ratios, MarketReports+™️analyses, Traders' Cockpit - Stock Radar™️screenings, etc., alongside an assortment of market event calendars/tools that forecast dividend payments or other corporate actions. Flatex's commitment to research tools adds significant value for clients seeking well-rounded support in their investment journey.

Market Access and Reach

Market accessibility is of paramount importance for investors wanting exposure to various financial assets worldwide. Let's examine the reach of Degiro and Flatex in terms of their market access:

Degiro

Degiro offers a wide array of markets, allowing investors to trade on over 50 exchanges, spread across 30 countries. Here's an overview of the opportunities available to traders on Degiro:

• Stocks: Access to major stock exchanges, such as the NYSE, NASDAQ, London Stock Exchange, Euronext Paris, and many others
• ETFs: An impressive selection of exchange-traded funds from providers like iShares, Vanguard, and more
• Bonds: Both corporate and government bonds are available for trading
• Options & Futures: Various options and futures are accessible via popular exchanges like EUREX and CME
• Cryptocurrency: A limited offering of cryptocurrencies can be traded on Degiro in the form of ETNs

Flatex

Flatex provides broad access to markets in Europe as well as international markets including key venues in North America, Asia-Pacific regions, International Securities Markets (ISM), Eurobond Market (EUWAX), etc.

Here is what Flatex offers its clients:

• Stocks: Comprehensive coverage of European stocks with additional access to major US markets (NYSE & NASDAQ)
• ETFs: A substantial array of ETFs from top issuers like iShares and others. Furthermore, certain ETFs can be traded commission-free through specific promotional offers
• Bonds: Offers trade in both government and corporate bonds with a noteworthy focus on German bonds (Pfandbriefe) aside from other countries' bonds in Eurozone or North America.
• Options & Futures: Trading is possible on various European derivatives exchanges such as EUREX.
• Cryptocurrency: Unfortunately, Flatex does not currently support cryptocurrency trading.

Regulatory Compliance

Regulatory compliance is a crucial factor for any financial services provider as it ensures the safety and protection of clients' assets. Let's delve into the regulatory landscape that governs Degiro and Flatex:

Degiro

Degiro is regulated by multiple authoritative entities, providing a framework of checks and balances in ensuring clients' best interests are served. Here's a list of key regulatory bodies overseeing Degiro:

• Netherlands Authority for the Financial Markets (AFM): As Degiro originated in the Netherlands, the AFM plays an instrumental role in regulating its activities.
• Dutch Central Bank (DNB): Being a licensed investment firm, Degiro also falls under the purview of the Dutch Central Bank.
• EU Directive MiFID II Regulation: Since Degiro operates across Europe, it must adhere to the Markets in Financial Instruments Directive II (MiFID II), which aims to increase transparency in financial markets while protecting investors' interests.

Additionally, client funds with Degiro are held separately from its own capital under segregated accounts, which reduces financial risk exposure. In an unlikely event where Degiro becomes insolvent, customer assets remain protected.

Flatex

Similar to Degiro, Flatex adheres to strict regulations set forth by prominent European financial authorities:

• German Federal Financial Supervisory Authority (BaFin): As a German-based online broker, Flatex is primarily regulated by BaFin.
• EU Directive MiFID II Regulation: Just like Degiro, Flatex is required to comply with MiFID II regulations since it operates within Europe.

Furthermore, to ensure client asset protection and security:

1. Flatex segregates customers' assets from its own capital
2. Investors are protected up to €100,000 per client via statutory compensation
3. Additional compensation may be covered up to €20,000 under the Entschädigungseinrichtung der Wertpapierhandelsunternehmen (EdW)

Liquidity

Liquidity is an essential aspect of trading as it influences the ease and speed of trade execution. The liquidity offered by Degiro and Flatex can be examined based on available asset classes, market access, and trading volume.

Liquidity at Degiro

Degiro provides a diverse range of tradable assets, with its extensive market access ensuring substantial liquidity for traders. Key factors that contribute to Degiro's liquidity include:

• Global reach: Access to over 50 exchanges across 30 countries allows traders to invest in a wide array of opportunities that cater to different risk profiles.
• Asset variety: By providing a vast selection of stocks, bonds, ETFs, options, futures, and limited cryptocurrencies (through ETNs), investors can allocate their funds across different instruments which further diversifies and enhances liquidity.
• Customer base: Degiro's growing popularity among European investors leads to increased trading volume on their platform, resulting in improved liquidity due to higher levels of market participation.

However, it should be noted that Degiro does not offer forex or commodities trading, which may hinder the overall scope of its liquidity offering.

Liquidity at Flatex

Flatex's commitment to catering to investors globally is evident in its extensive range of products and markets offered:

• European focus: With broad access to various European financial markets alongside major US exchanges (NYSE & NASDAQ) among others (Asia-Pacific/ISM/EUWAX etc.), Flatex ensures good overall liquidity for its clients.
• Asset variety: Similar to Degiro in terms of asset diversity (stocks/bonds/ETFs), Flatex additionally offers a significant exposure towards German fixed income securities (Pfandbriefe). However, the lack of cryptocurrency support restricts the complete scope of potential liquidity.
• Trading volume: Given Flatex's reputation as a reputable online broker within the European market, a solid customer base and correspondingly high trading volume contribute positively to overall liquidity.

Fees

Comparing Degiro and Flatex: Fees

When choosing an online broker, understanding the different fees structure is crucial to ensure a cost-effective trading experience. Here's a comparison of the fees and charges associated with trading on Degiro and Flatex.

Trading fees

• Stocks: For US stocks, Degiro charges $2.1 while Flatex levies a fee of $6.3. When trading UK stocks, Degiro's charges are slightly lower at $3.4. However, no data is available for Flatex in this category. In terms of German stocks, both charge similar fees – $5.2 for Degiro and $6.3 for Flatex.
• Forex Fees: No data is available for Degiro regarding forex fees, while Flatex charges benchmark fees vary depending on the currency pair: EURUSD has a fee of $24.5; EURGBP stands at $23.3; and AUDUSD demands a fee of 26.5.
• Fund Fees: Mutual fund fees are quite competitive between the two platforms - Degiro charging $4.2 and Flatex requiring a fee of $6.3.
• Bond Fees: No information exists for US Treasury Bond charges on Degiro, while Flatex comes with fixed pricing at $6.3.
• Options & Futures Fees: For US stock index options, Degiro imposes a cost of \$7.5; German stock index options command a higher charge at \$9.6.

Category	Degiro Fee	Flatex Fee
US Stock	$2.1	$6.3
UK Stock	$3.4	-
German Stock	$5.2	$6.3
EURUSD benchmark fee	-	$24.5
EURGBP benchmark fee	-	$23.3
AUDUSD benchmark fee	-	$26.5
Mutual Fund	$4.2	$6.3
US Treasury Bond	-	$6.3
US Stock Index Options	$7.5	-
German Stock Index Options	$9.6	-

Non-trading fees

For both platforms:

• Account Fee: None
• Custody Fee: None
• Inactivity Fee: None
• Withdrawal Fee: Free

Comparing the provided data reveals that in most categories, usage fees for trading with Degiro tend to be more competitive, especially when considering US Stock trading costs favoring budget-conscious traders seeking optimal returns on their investments.

However, members should bear in mind all the associated fees that come into play alongside individual trading preferences before making a decision on which platform best suits their requirements.

Security

Ensuring the security and safety of clients' funds and personal information is crucial for any online broker. Consequently, both Degiro and Flatex maintain strict security standards to protect their customers.

Security Measures at Degiro

Degiro employs a variety of measures to ensure the safety and security of their clients:

• Two-Factor Authentication (2FA): This added layer of account protection is provided by Degiro, requiring an SMS verified code (one-time password) or Google Authenticator when accessing their services.
• SSL encryption: Web sessions are secured using strong SSL encryption, ensuring that sensitive data transmitted between users and the platform remains safe.
• Segregated Client Funds: As part of its regulatory requirements, Degiro holds clients' money in segregated accounts separate from its own capital. This measure effectively secures clients' funds in the event that Degiro faces financial difficulties.
• Stringent Verification: To combat fraud or other malicious activities, Degiro enforces rigorous identity verification procedures during account opening.

Security Measures at Flatex

Flatex also maintains robust security standards to protect customers:

• Login Safeguard: Flatex uses a secure login interface known as iTAN, which offers account holders an added level of protection through individual transaction numbers generated uniquely for each operation.
• SSL encryption: Similar to Degiro, Flatex utilizes SSL encryption to secure data transmission between users and the platform.
• Controlled Access Systems: Flatex's infrastructure is designed with controlled access systems that prevent unauthorized entry into their data centers.
• Strict Regulatory Compliance: Being regulated by well-respected financial authorities like BaFin ensures that client assets are managed in adherence to stringent regulatory guidelines.

Both online brokers prioritize customer safety by implementing comprehensive security measures. With either option, investors can trust they are trading on platforms committed to providing a secure environment that minimizes threats and maintains compliance with regulatory standards.

Crux Of The Comparison

After thoroughly analyzing Degiro and Flatex on various parameters such as account opening, trading tools, market access, fees, liquidity, regulatory compliance, and security measures, it is evident that both platforms excel in their respective ways.

Based on factors like competitive pricing—crucial to traders seeking cost-effective brokerage services—simplified account opening process as well as a wider market reach providing access to diverse investment opportunities like limited cryptocurrencies; Degiro appears to have a slight edge over Flatex.

As we have highlighted these advantages, one can confidently infer that Degiro makes for a more appealing platform for investors striving towards maximizing returns whilst enjoying great diversity in investment options and benefiting from a user-friendly interface.

While making your decision about the right broker for you, always keep in mind your individual financial goals and preferences – after all, finding the right fit now will lead you toward a successful journey in the world of investing.

FAQs Regarding Degiro Vs Flatex

Conclusion

Degiro and Flatex both offer a wide range of services, market access, and trading tools to cater to various client needs. However, choosing the right online broker ultimately depends on individual preferences and investment objectives.

Nevertheless, based on our comparison, Degiro comes out slightly ahead, owing to factors such as its more competitive pricing structure, streamlined account opening process, larger market reach with access to limited cryptocurrencies, and an easy-to-use trading platform.

While Flatex boasts powerful research tools and integration with MetaTrader 4 for advanced traders, these benefits might not be significant enough to outweigh Degiro's advantages when it comes to cost efficiency and investment opportunities.

Though both platforms are reputable choices in the European brokerage landscape, for investors seeking a comprehensive yet cost-effective platform with user-friendly features and diversified trading options across various asset classes – Degiro may very well be the better choice.