As a UK trader, you have no doubt heard of DEGIRO as being a really popular broker choice in Europe. They have a lot to offer and you can read our DEGIRO review for full details about them.
If you are looking for efficient, tax-free trading in the UK, an ISA account will be something to consider. Here we will look at whether you can open a DEGIRO ISA account, and what other solutions you can find with this top broker.
Let’s get started.
Table of contents
Does DEGIRO offer an ISA Account?
Presently, DEGIRO does not offer an ISA account. This may discourage some UK traders who are looking to take advantage of this type of account that is only offered by brokers to traders in the UK.
Nevertheless, you can still find some great opportunities to trade a huge range of shares and other assets with DEGIRO and some of the lowest fees in the industry.
But, can a DEGIRO account act like an ISA Account?
If you are still interested in trying DEGIRO, the Custody Account that they offer may be ideal since it can also function as a kind of ISA account as long as you know how to manage it in terms of where you are investing.
There are many accumulative ETFs available through the broker on which you will not pay any tax unless you close the position. Combine this with the good selection of free ETFs DEGIRO offers, and you have a good ISA alternative. The fact that commissions start from only $0.50 is further support for this strategy.
With that said, of course, it is still not an ISA account in the traditional sense. An ISA account is designed to allow you to invest without the worry of Capital Gains Tax. There are no such accounts available with DEGIRO. Still, in many countries, you will not have to pay CGT until you close a position or earn passive income from things like dividends.
So, with that in mind, if you keep your positions open, and are investing in no dividend assets, or assets that reinvest the dividends instead of distributing as above, then you won’t pay tax until you close a position.
DEGIRO Custody Account vs Basic Account
With a DEGIRO Custody Account, you can still enjoy the full stockbroking experience they have to offer. This is a choice you make when you first register with the broker, between a custody, or basic account type.
The main feature of this custody account type is that your assets are held desperately from the DEGIRO client securities lending pool, and therefore cannot be loaned out to any third parties. They will be under your control at all times.
For more details on this, and other features of the account, we suggest you read our DEGIRO Custody Account article in full.
ISA Account alternatives to DEGIRO
If you are a UK trader and still determined to open an ISA account, we would recommend that you have a look at Trading 212 and Saxo Bank. Both of these offer ISA accounts. Since Trading 212 fractional shares trading is offered, they may be perfect for newer traders while Saxo Bank despite their high entry levels, has a lot to offer more experienced traders.
You can see some of the key details on these brokers in the chart below:
|DEGIRO||Trading 212||Saxo Bank|
|Commissions on stocks||Very low||None||From £8|
|Stocks exchanges available||37||7||32|
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
One downside of DEGIRO as broker
Unfortunately, one of the shortfalls of DEGIRO is the fact they do not offer any demo account for you to practice with.
If you think you would like to try a demo account, you definitely need to check the best brokers with unlimited demo accounts listing that we have compiled.
About the Author
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.