DEGIRO Basic vs Custody Account

logomark Luca Puddu calendar Last Updated: November 2021 timer 3 min read
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As someone who is interested in opening a DEGIRO account, the best place you can get all of the information is from our DEGIRO review that covers every detail.

After reading this, you will note that there are two starting account profiles available. So what is the difference? Here we will compare the DEGIRO Basic VS Custody profile types in detail allowing you to make an informed choice.

Let’s get started.

Table of contents

DEGIRO Basic VS Custody: Main difference

The key difference between both of these profile types comes down to share lending. That is, with the Basic Account type, the broker may lend out your shares to a third party. Even in this case, you will be fully protected.

This lending out of your securities will not happen with a Custody Account since your holdings are kept separate from the DEGIRO lending pool and this does not occur under the terms of the account type.

When can you decide on which account to use?

Once you are registering with DEGIRO, you will be prompted to choose between a Basic, or Custody profile. This is a one-time-only decision and should be considered as you cannot convert the account types in the future. What you can do though, is create multiple DEGIRO accounts without issue.

If you are interested, you can get more information from reading our guide on DEGIRO change basic to custody now.

How a Basic profile works

With a DEGIRO Basic profile, you will have access to a great range of tradable assets as offered by the broker. This includes shares, bonds, investment funds, and trackers (ETFs) as leveraged products.

Among the key features of a Basic Profile is even lower trading fees. You may also be eligible for tax-free dividends depending on your situation. With that said, a basic profile may not grant you full access to all assets and features. This will require an upgrade to an ActiveTrader, or Day Trader profile which you can do at no extra cost.

These profiles will open up more features like the ability to trade various derivatives, and going short on particular assets. There will also be a difference in the percentage of margin that is available to you. Further details can be noted from the chart below.

Basic Active Trader Day Trader
Margin trading available No Up to 50% of your available margin Up to 100% of your available margin Up to 100% of your available margin with additional margin during trading hours
Going short allowed No Yes Yes Yes
Trade derivatives No Yes Yes Yes

How a Custody profile works

With a custody profile, you will have access to the same markets but this profile type only allows for you to trade the actual real asset. You will still also benefit from really low fees that can rival any broker in the industry. Furthermore, you will still receive any dividends your holdings pay, though they will not be processed free of charge on a custody account.

With a custody profile, you will have access to the same markets but this profile type only allows for you to trade real assets and not derivatives.

Another difference is that your securities with this account type are held separately from the lending pool of DEGIRO clients’ securities and are thus unable to be loaned to third parties.

You will still also benefit from really low fees that can rival any broker in the industry. These generally start from $0,50, but they are totally absent when investing in certain ETFs and stock exchanges.

When fees are charged, they are composed of two parts. The first is a base rate fee which will vary depending on the exchange you are trading on, and the second part is a variable percentage rate depending  on the volume of your trade.

There will also be the DEGIRO exchange connection fee. This is paid at €2.50 per annum for each exchange you trade on with the exception of the London Stock Exchange. The fee covers your usage of exchanges around the world and any technical support you receive.

When the company you’re investing in distributes dividends, you will be notified by DEGIRO and you will also be able to keep track of all the dividends you’ve received in the past. If you’re investing in US stocks, you can benefit from reduced tax rates by filling the W-8BEN form during the account opening. This form is required by DEGIRO to confirm whether or not the trader is a US citizen.

DEGIRO Basic VS Custody profile comparison

The chart below displays in simple format some of the key similarities and differences within the most important areas of a Basic, and Custody DEGIRO account.

DEGIRO Basic vs DEGIRO Custody Basic Custody
Low Fees Yes Yes
Shares, Bonds, Investment Funds, and Trackers (ETFs) Yes Yes
Leveraged Products Yes No
Free dividend Yes No
DEGIRO may lend your security Yes No

About the Author

Luca Puddu

Broker Expert

Always full of different interests, Luca started to get interested in the field of personal finance in 2014.

His self-taught studies led him year by year to become increasingly interested in the investment field.

To date, Luca actively invests in the stock market and cryptocurrencies, focusing on rising markets and the industries of the future.

His main role at InvestinGoal.com is to analyze and study in the smallest detail the brokers and their platforms, while checking carefully that the information shown by them is genuine.

In this way, he provides readers with a complete and truthful overview of the broker they might be interested in.


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