10 Nov 2016 | 10.09 am
Strong Growth Continues For Online Broker DEGIRO
DEGIRO has been gaining foreign market share and all signs point to further growth
10 Nov 2016 | 10.09 am
Online broker DEGIRO is growing fast. An increase in marketing efforts in the third quarter resulted in growth of new accounts. September ended with more than 128,000 client accounts, an increase of 78% compared with the same period in the previous year. The number of transactions increased to 6.7 million (+63%).
In the third quarter, a record number of 2,303,114 transactions were processed and 16,190 new accounts were opened. DEGIRO, which offers its services in 17 countries, is the largest broker in the Netherlands and a top 10 broker in Europe.
“Our goal of becoming the number one broker in Europe is getting closer. More than 50% of our customers are from outside the Netherlands. Thanks to economies of scale, DEGIRO retail platform is already profitable,” says Gijs Nagel, director of DEGIRO.
DEGIRO offers investing for wholesale fees. “We use technology to optimally deploy our processes, which makes them very efficient. The benefits of this efficient approach is passed on to our clients,” Nagel adds. According to DEGIRO, clients have saved more than €100 million in fees since the launch of the retail platform. “Technology enables us to provide a fair service. At the same time, DEGIRO has established itself as a stable financial institution with solid results.”
Success In Ireland
DEGIRO’s success comes from its ability to process large numbers of transactions for a fraction of the cost of traditional brokers. This model of lower fees has appealed to Irish investors, who have been enthusiastic about joining the firm since its launch last year.
Of all the countries where DEGIRO offers services, the firm is on average 80% cheaper than competitors. In Ireland it is even more competitive, and is over 90% cheaper than the Irish average. Ireland has long been one of the most expensive countries in Europe to trade.
“We are thrilled to see how many clients are coming to DEGIRO, especially in Ireland,” says Paul Laverty, Irish spokesman of DEGIRO. “We also see Irish employer share schemes being brought to DEGIRO. This is a clear sign of trust and we’re happy to service employees of companies offering these schemes.”
Brokers will often charge monthly maintenance fees or impose trade minimums to their clients. This puts buy-and-hold investors at a disadvantage. “Regardless of trade activity, all of our clients get the same low price,” says Laverty. “Whether you trade once per day or once per year, we do not penalise our clients by only giving the best fees to more active clients. Buy-and-hold investors are as welcome to trade with DEGIRO as are day traders.”
DEGIRO was founded in 2008 and initially serviced institutional investors. In 2013, the company also launched a retail platform. Thanks to wholesale fees and a solid structure, the company grew rapidly. DEGIRO is a pan-European broker and offers its services in 17 countries. The platform processes transactions worth €30 billion annually on worldwide exchanges and serves over 128,000 investors.
In the coming years, DEGIRO aims to become the biggest online broker in Europe, measured in number of transactions. DEGIRO operates under the general regulatory scope of AFM (Autoriteit Financiële Markten) and under the regulatory capital supervision of DNB (De Nederlandsche Bank).
Photo: Paul Laverty, DEGIRO