Many of you out there doing a little research on Degiro, the new European stockbroking platform which has entered the UK market and blown away the pricing of every other execution only only stockbroker, will probably have come across the article entitled '9 Things I Hate About Degiro' on the AmsterdamTrader blog. While chatting with Gijs Nagel, a Degiro founder and director, I brought up how he felt about the points raised, whether they were valid criticisms or just a blogger going intentionally negative in order to generate clicks. Gijs, while you wouldn't really expect otherwise, felt that the reality was more the latter.
We thought it would be a nice idea to allow the company to respond to the criticisms made and Degiro's response is as follows. I have included only the headline where I feel that the rest of the explanation isn't really necessary to clarify the main point though anyone interested in the entire explanation given for the criticism can find the article in question easily:
- IMPOSSIBLE TO CHANGE PASSWORD
Not true now and not true then, has always been possible. Ridiculous thing to say.
- DEGIRO GIVES NO TRADE CONFIRMATIONS
This was a valid point but we are working on it and the issue will be resolved within the very near future.
- DIVIDEND MESS
I've added the whole explanation of the criticism here as it is less self explanatory here than the previous points:
AmsterdamTrader: Some stocks give the opportunity to select cash or stock dividend. Clients of DeGiro will have no possibility to make decision. They get the cash. It gets even worse when receiving US dividends. The dividend witholding tax for Dutch clients used to be 15% – but is raised to 30% as DeGiro switched from ABN AMRO to Morgan Stanley. They don’t know anything about taxes. Clients are on their own. Nothing is communicated about the matter.
Degiro's response: Solved, we currently offer w8-ben
- WEBSITE IS A MESS
AmsterdamTrader: The website interface is horrible and hard to navigate. Finding stocks quickly is difficult. (the explanation of the point goes on but I feel that this first sentence is the important one).
Degiro's response: Solved. We have lists per country that enable you to find the biggest shares per country easy.
- NO FIXED RULES
AmsterdamTrader: At DeGiro you can’t rely on a set of rules. For example expiring in the money options can be exercised, according to a reaction from their director. Depending on “circumstances and market expectations”. And they take half of the profit (seriously!). Same story with rights offerings. Clients who forget to subscribe to a rights offering and don’t sell their claim can’t rely on DeGiro. Sometimes DeGiro takes action, subscribes to the claim, sells the shares and takes half of the profit. It depends. Case by case.
Degiro's Response: Solved, new rules in place, if you do not exercise your options we will do it for you when it is more that 2% in the money. We take a 20% cut for the risk we take.
- INEXPERIENCED BACK OFFICE
Degiro's response: We have been doing this for 7 years now, so I would say that this statement is inaccurate. We have received very favourable customer service feedback in all of the countries we operate in.
- LIMITED TRADING POSSIBILITIES
AmsterdamTrader: Most painful are the lack of combinations and spreads in the option market. Time spreads, straddles and strangles : all have to be executed in single legs. (this is not the entire text of the explanation but what I considered key).
Degiro's Response: Solved, weekly options added months ago, multiple legs in options will be introduced 1 July.
- NO APP
Degiro's Response: Our app has been available since the beginning of this year.
- NO COMMUNICATION, NO TWITTER
AmsterdamTrader: It’s 2014 and there’s no active twitter account for DeGiro. (this is again not the entire text of the point but what I think is relevant)
Degiro's Response: We choose to spend our energy on improving our service instead.
The blog article in question has actually recently been updated also, with an admittance that many of the points of criticism raised have subsequently been resolved. We'll be adding Degiro very shortly to the iNVEZZ review platform and it would be really appreciated if anyone who has already opened a share dealing account with the company could share there opinion there. There will always be pluses and minuses for any service provider and product and those will not be the same for each individual. The more people share their own experience of the brokers and other service providers on the iNVEZZ review platform, the more balanced the overall picture will become. You can find the platform here :