IG Vs Degiro
If you are looking for a broker to trade stocks, ETFs, forex, CFDs, options, futures, and more, you may have come across IG and Degiro. These are two of the most popular brokers in Europe, but they have different features, fees, and services that may suit different types of traders. In this article, we will compare IG and Degiro based on various criteria, such as fees, products, platforms, research, customer service, and security. By the end of this article, you should have a clear idea of which broker is better for you. Let’s get started!
Overview of IG
IG is a renowned and established trading platform that has gained recognition for its comprehensive range of features and user-friendly interface. With IG, investors can access a wide variety of financial markets, including stocks, indices, forex, commodities, and cryptocurrencies. The platform offers an intuitive trading experience with its advanced charting tools, real-time market data, and customizable layouts. Additionally, IG provides a range of order types, including market orders, stop orders, and limit orders, empowering traders to execute their strategies effectively.
Risk management tools such as stop-loss and take-profit orders are also available, allowing users to set predefined levels to automatically close their positions. IG further distinguishes itself by offering educational resources, including webinars and tutorials, enabling traders to enhance their knowledge and skills. With its robust features and commitment to customer satisfaction, IG remains a leading choice for traders seeking a versatile and reliable trading platform.
Pros of IG
- Wide range of financial markets available, including stocks, indices, forex, commodities, and cryptocurrencies.
- User-friendly interface with advanced charting tools and customizable layouts.
- Offers a variety of order types for effective execution of trading strategies.
- Provides risk management tools like stop-loss and take-profit orders.
- Offers educational resources such as webinars and tutorials to enhance traders’ knowledge and skills.
Cons of IG
- Higher trading fees compared to some other platforms.
- Inactivity fees for dormant accounts.
- Limited availability of certain markets in certain regions.
- Customer support response time can sometimes be slow.
- Requires a minimum deposit to open an account.
Overview of Degiro
Degiro is a popular trading platform that stands out for its low-cost structure and extensive range of investment opportunities. With Degiro, investors gain access to a broad selection of global markets, including stocks, ETFs, bonds, options, and futures. The platform prides itself on offering competitive fees, making it an attractive option for cost-conscious traders. Degiro provides a user-friendly interface with intuitive navigation, making it easy to execute trades and monitor portfolio performance. Additionally, the platform offers a wide array of research tools and real-time market data to aid investors in making informed decisions.
Degiro also prioritizes security by implementing robust measures to protect user data and assets. While it focuses on delivering a streamlined and cost-effective trading experience, it’s important to note that Degiro may have certain limitations in terms of advanced trading features and research resources compared to more specialized platforms. Nonetheless, Degiro remains a compelling choice for investors seeking a reliable, affordable, and accessible trading platform.
Pros of Degiro
- Low-cost structure with competitive fees.
- Access to a broad range of global markets, including stocks, ETFs, bonds, options, and futures.
- User-friendly interface with intuitive navigation.
- Provides a wide array of research tools and real-time market data.
- Strong focus on security measures to protect user data and assets.
Cons of Degiro
- Limited advanced trading features compared to specialized platforms.
- Research resources may be relatively basic compared to some competitors.
- Some additional fees for certain services, such as dividend handling or inactivity fees.
- Customer support response time can occasionally be slow.
- Availability of certain markets and financial instruments may vary depending on the region.
Comparing IG and Degiro
Here are some key factors to consider when choosing between IG and Degiro:
IG and Degiro differ in terms of their regulatory oversight. IG is regulated by the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore (MAS). On the other hand, Degiro is regulated by the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB). While both brokers are regulated, the specific jurisdictions and regulatory bodies they fall under may influence traders’ preferences based on their individual comfort levels and trust in the respective regulatory frameworks.
IG offers a diverse range of trading platforms, including MetaTrader 4 (MT4), ProRealTime, L2 Dealer, and WebTrader. Each platform caters to different trading needs and preferences. MetaTrader 4 is a widely recognized and popular platform known for its advanced charting capabilities and automated trading options. ProRealTime offers customizable charts and technical analysis tools. L2 Dealer provides direct market access for experienced traders, allowing them to trade directly on the order books of major exchanges. WebTrader is a user-friendly web-based platform that enables convenient trading from any device with internet access. In contrast, Degiro offers its proprietary trading platform, designed to provide a streamlined and efficient trading experience. While it may not offer as many platform choices as IG, Degiro’s platform focuses on simplicity and functionality, ensuring traders can execute trades and monitor their portfolios with ease.
Pricing and Fees
IG offers a Standard account with competitive spreads starting from 0.6 pips and does not charge commissions on trades. This pricing structure can be attractive to traders seeking cost-effective trading options. On the other hand, Degiro operates with a Standard account that charges brokerage fees starting from €2 per trade. While Degiro’s fees may be higher than IG’s spread-based model, it is important to consider the overall cost structure and the specific needs of individual traders. Traders should assess their trading frequency, volume, and desired asset classes to determine which pricing model aligns best with their trading strategy.
IG functions as an STP (Straight Through Processing) broker, which means it provides direct market access to clients. This setup can potentially result in faster trade execution and increased transparency. In contrast, Degiro operates as an ECN (Electronic Communication Network) broker, connecting traders to a vast network of liquidity providers. This setup can offer traders access to competitive pricing and enhanced market depth. The choice between an STP and an ECN broker depends on traders’ preferences for trade execution, liquidity, and the type of trading strategies they employ.
IG provides leverage options for eligible clients, with leverage ratios reaching up to 1:30. Leverage allows traders to amplify their trading positions, potentially increasing their potential profits (as well as losses). On the other hand, Degiro does not offer leverage to its clients. Consequently, traders using Degiro cannot utilize leverage as a strategy to increase their exposure to the market. Traders should carefully consider their risk tolerance and trading objectives when evaluating the availability and use of leverage.
IG offers an extensive range of over 17,000 tradable instruments, covering forex, indices, shares, commodities, cryptocurrencies, options, ETFs, bonds, and interest rates. This broad selection caters to the diverse investment needs and strategies of traders. In comparison, Degiro provides access to over 50 exchanges worldwide, offering a wide range of stocks, bonds, options, futures, ETFs, and funds. While Degiro may not offer the same breadth of instruments as IG, it covers multiple asset classes and provides global market exposure.
Neither IG nor DEGIRO offers social trading or copy trading features on their platforms. However, IG has an IG community feature where traders can interact with each other, share ideas, and learn from experts. IG also has an IGTV feature where traders can watch live market updates and analyses from IG’s analysts. DEGIRO does not have any similar features on its platform.
DEGIRO has no minimum deposit requirement for opening an account, which makes it more accessible for beginners and small investors. IG has a minimum deposit of £250 or equivalent for bank transfers, or £300 or equivalent for debit/credit cards or PayPal. However, this is not a fixed amount, as it may vary depending on the currency of your account or the payment method you use.
Withdrawal and Deposit Methods
IG offers more options and flexibility for withdrawing and depositing funds compared to Degiro. IG allows withdrawals and deposits using debit cards, wire transfers, or ACH, and funds can be withdrawn to a verified bank account or back to the card as a refund. On the other hand, Degiro only permits bank transfers from a primary registered bank account in the user’s name and does not support third-party services like PayPal or Revolut. Both platforms do not charge fees for withdrawals or deposits.
IG or Degiro: Which Is Best for You?
Determining which broker is best for you ultimately depends on your specific trading preferences and requirements. If you’re someone who values a wide range of trading platforms, extensive asset selection, and access to social trading features, then IG might be the best choice for you. With its diverse platform options, comprehensive range of tradable instruments, and social trading functionality through Myfxbook, IG caters to those seeking variety and community engagement. On the other hand, if you prioritize simplicity, competitive pricing, and a no-minimum-deposit policy, then Degiro may be the better fit. Degiro’s proprietary platform offers a streamlined trading experience, and its low brokerage fees combined with the absence of a minimum deposit requirement make it appealing to cost-conscious and beginner traders. Consider your trading goals, desired asset classes, technological preferences, and cost sensitivity to make an informed decision on which broker is best suited for your unique needs.
In conclusion, the comparison between IG and Degiro highlights the distinct strengths and offerings of each trading platform. IG stands out with its wide range of trading platforms, extensive asset selection, and social trading capabilities, making it a suitable choice for traders seeking variety and community engagement. On the other hand, Degiro excels in simplicity, competitive pricing, and accessibility, appealing to cost-conscious and beginner traders. Ultimately, the choice between IG and Degiro depends on individual trading preferences, such as desired platforms, asset classes, pricing models, and social features. By considering these factors, traders can select the broker that aligns best with their goals and trading style, embarking on a successful journey in the dynamic world of online trading.
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