Swissquote Vs Degiro 

Category: Broker Guides | Author: Trading Brokers | Date: July 25, 2023

In the ever-evolving world of online trading, finding the right platform to suit individual needs is paramount to success. Among the myriad of options available, Swissquote and Degiro have emerged as leading contenders, each offering unique features and benefits. In this comprehensive article, we delve into the world of online trading, comparing the strengths and weaknesses of these prominent platforms. Join us as we analyze the user experience, trading fees, security measures, and other essential aspects to equip traders with the knowledge necessary to make an informed choice. Discover the platform that aligns perfectly with your investment goals and maximizes your trading potential.

Overview of Swissquote

Swissquote

Swissquote

Swissquote, a prominent Swiss online banking and trading company, caters to a diverse clientele by offering an extensive array of financial products and services. Their platform provides access to a vast range of assets, including stocks, cryptocurrencies, Forex, and CFDs, granting individuals and institutional investors the means to participate in various markets and platforms.

With a commitment to competitive fees, efficient tools, and secure transactions under the umbrella of a reputable Swiss bank, Swissquote aims to deliver a seamless user experience. Some notable features include the eTrading platform, enabling multi-asset trading, Invest Easy, offering return-oriented investment and saving solutions, and Advanced Trader, providing advanced tools and indicators for Forex and CFD trading.

Swissquote’s leadership in the Swiss online banking domain is affirmed by its longstanding presence on the SIX Swiss Exchange since 2000, complemented by international offices in strategic locations, including Luxembourg, Malta, London, Dubai, Singapore, and Hong Kong.

Pros of Swissquote

  • Diverse range of products and services, including stocks, cryptos, Forex, CFDs, and investment solutions.
  • User-friendly trading platforms with advanced tools like MetaTrader and eTrading.
  • Regulated by reputable authorities, ensuring a secure and trustworthy environment.
  • Transparent fee structure with competitive pricing.
  • Social trading option available for Forex and CFDs.

Cons of Swissquote

  • Some products may have minimum balance requirements.
  • Market maker for certain products, potentially resulting in conflicts of interest.
  • Limited leverage options compared to some competitors.
  • Withdrawal and deposit fees may apply depending on the method and currency used.
Swissquote Logo

Swissquote is a leading online broker with multiple regulations, a large range of trading instruments, competitive spreads and zero commissions. They offer powerful and user-friendly trading platforms, flexible account types, advanced trading tools and educational materials.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Overview of Degiro

Degiro

Degiro

Degiro, a prominent European online broker, specializes in providing cost-effective trading and investment services to both individual and professional clients. With a broad global reach, Degiro facilitates access to over 50 exchanges across 30 countries, offering a diverse array of financial products, including stocks, ETFs, options, futures, and bonds.

Among its key features, Degiro presents the Core Selection, a list of selected ETFs tradable commission-free once a month (subject to fair use policy). The platform has received acclaim for its user-friendly interface, granting users access to comprehensive company profiles, financials, analysts’ views, news, and more.

Operating as a regulated broker, Degiro adheres to stringent data protection standards and ensures the safekeeping of customers’ assets. Notably, the broker boasts a transparent fee structure, presenting all transaction costs clearly to its clientele. With a customer base of over 2.5 million and offices across 18 countries, Degiro continues to emerge as one of the fastest-growing online brokers in Europe and is affiliated with the German bank flatexDEGIRO AG.

Pros of Degiro

  • Low-cost trading with competitive fees, making it cost-effective for frequent traders.
  • Access to a wide range of financial products, including stocks, ETFs, options, futures, and bonds.
  • Transparent fee structure with no custody fees and minimal commission charges for trades.
  • User-friendly and comprehensive trading platform with valuable analytical tools and financial information.
  • Regulated by reputable authorities, ensuring compliance with financial regulations.

Cons of Degiro

  • Limited customer support options, potentially leading to delayed responses.
  • No leverage options, restricting traders who prefer to use borrowed funds for trading.
  • Limited research and educational resources compared to some other platforms.
  • Withdrawals and deposits are limited to bank transfers only, without additional payment options.
  • Not suitable for traders seeking social trading features, as the platform does not provide this functionality.
Degiro Logo

Degiro is a multi-award winning, multi regulated online broker with very competitive fees and large range of products to trade on 50 exchanges, spanning across 30 different countries. They have a comprehensive range of trading tools and educational materials to assist you with making informed decisions according to your own financial goals.

Trading in financial instruments involves substantial risk of loss and is not suitable for every investor.

Swissquote vs Degiro: Comparing Top Online Trading Platforms

To determine which platform is more suitable for you, let’s compare Swissquote and Degiro across various factors:

Regulation

Both Swissquote and Degiro adhere to strict regulatory standards. Swissquote operates as a Swiss bank and is regulated by the Swiss Financial Market Supervisory Authority (FINMA). Additionally, it holds licenses from other regulators in the countries where it operates, including the UK’s Financial Conduct Authority (FCA). Degiro, on the other hand, is a Dutch broker regulated by the Dutch Authority for Financial Markets (AFM) and the Dutch Central Bank (DNB). It is also registered with the FCA in the UK and complies with the European Securities and Markets Authority (ESMA) rules.

Trading Platforms

Swissquote offers a diverse range of trading platforms to cater to various products and services, including eTrading, Invest Easy, Advanced Trader, MetaTrader, and Cryptos. These platforms provide web-based and downloadable options, equipped with unique features and tools tailored to different types of traders and investors. Conversely, Degiro provides a single web-based trading platform that is also accessible via mobile app, offering a user-friendly and comprehensive interface with company profiles, analysts’ views, financials, ratios, news, and more.

Pricing and Fees

Both Swissquote and Degiro have low trading fees for most asset classes, especially stocks and ETFs. However, Degiro stands out for offering zero commissions on over 5,000 US equities and many European equities. Swissquote charges volume-tiered commissions ranging from $9 to $190 for US stocks, and similar fees for European stocks.

Both brokers charge low fees for forex, funds, bonds, options, and futures. However, Degiro charges a €5 monthly fee for trading US derivatives (options and futures), while Swissquote does not. Both brokers charge a 0.25% FX conversion fee when trading in a different currency than your account-based currency. Degiro has lower trading fees overall, especially for stock and ETF trading. It also does not charge any non-trading fees, such as inactivity or withdrawal fees.

Broker Type

Degiro has a more transparent and consistent execution model than Swissquote. Swissquote is a hybrid broker that offers both market-making and STP execution models depending on the product and the account type. For example, Swissquote acts as a market maker for forex trading on its Standard account but offers STP execution on its Prime account. For stock trading, Swissquote offers direct market access (DMA) through its Advanced Trader platform.

Degiro on the other hand, is an STP broker that executes your orders directly on the market without any intervention. Degiro does not act as a market maker or a counterparty to your trades. Degiro also offers DMA for stock trading through its WebTrader platform.

Leverage

Swissquote offers leverage for certain products such as Forex, CFDs, and options, allowing clients to trade with higher positions relative to their account balance. The leverage ratio is subject to product type, market conditions, and clients’ profiles, with a maximum leverage ratio of 100:1 for Forex and CFDs. In contrast, Degiro does not offer leverage for any products, meaning clients can only trade with their own funds.

Asset Selection

Both platforms boast diverse asset selections. Swissquote caters to individual and institutional clients with offerings such as stocks, cryptocurrencies, Forex, CFDs, investment and saving solutions, credit solutions, and more. Clients can access a vast array of products across various markets and platforms. Degiro, on the other hand, caters primarily to individual clients with products such as stocks, ETFs, options, futures, bonds, and more, with access to over 50 exchanges across 30 countries.

Social Trading

Swissquote enables social trading for specific products like Forex and CFDs, where clients can follow and copy the trades of other traders through the MetaTrader platform, utilizing the MQL5 signals service. Clients can also engage in the Swissquote community, sharing trading ideas and strategies with fellow traders. However, Degiro does not currently offer social trading for any products, limiting the ability to follow or copy the trades of other traders.

Minimum Deposit

Swissquote does not impose a minimum deposit requirement for opening an account, though some products and services, such as investment and saving solutions, credit solutions, and Forex, may have minimum balance requirements. For example, the minimum deposit for a Forex account is $1,000. In contrast, Degiro does not require a minimum deposit or balance to open or maintain an account, but it does require a minimal first deposit of £0.01 for UK clients or €0.01 for EU clients for bank account verification purposes. Degiro does not charge any fees for deposits or withdrawals via bank transfer.

Withdrawal and Deposit Methods

Swissquote accepts various withdrawal and deposit methods, including bank transfers, credit cards, debit cards, Skrill, Neteller, and Sofort, with fees ranging from 0% to 2.5% depending on the method and currency used. Degiro, however, exclusively accepts bank transfers for withdrawal and deposit purposes, offering free withdrawal and deposit for most currencies, though some exotic currencies incur a conversion fee of 0.1% of the amount.

Which is Best for You: Swissquote or Degiro?

When choosing between Swissquote and Degiro, the decision largely hinges on your specific trading preferences and investment goals. If you’re someone who values a wide array of financial products and services, coupled with access to various markets and platforms, Swissquote may be the ideal fit. Its diverse offerings, encompassing stocks, cryptos, Forex, CFDs, investment and saving solutions, and more, cater to both individual and institutional clients. Moreover, if you seek a platform with comprehensive trading tools and the option for social trading in Forex and CFDs, Swissquote offers the edge. On the other hand, if low-cost trading is paramount, especially for frequent traders, Degiro shines with its competitive fees and minimal commission charges. Its user-friendly platform with valuable analytical tools can be the go-to choice for those seeking seamless trading experiences. However, if leverage plays a pivotal role in your strategy, keep in mind that Degiro does not offer this option. Ultimately, the choice between Swissquote and Degiro rests on your unique requirements, risk appetite, and desired features.

Conclusion

In conclusion, choosing between Swissquote and Degiro depends on individual preferences. Swissquote offers a diverse range of products, advanced tools, and social trading options, while Degiro provides low-cost trading with a user-friendly platform. Consider your trading needs, desired features, and cost considerations to make the best decision for your investment journey.


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