DEGIRO ISA Account Explained

filippo ucchino Filippo Ucchino calendar Last Updated: April 2022 timer 3 min read

As a UK trader, you have no doubt heard of DEGIRO as being a really popular broker choice in Europe.

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.

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.

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But, can a DEGIRO account act like an ISA Account?

If you are still interested in trying DEGIRO, the 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 introduces zero on top exchanges

DEGIRO Custody Account vs Basic Account

With a DEGIRO Custody Account, you can still enjoy the full stockbroking experience they have to offer.

The main feature of this custody account type, if you already own it, is that your assets are held separately 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.

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(Investing involves risk of loss)

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 BankBoth 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
Isa Account No Yes Yes
Minimum Deposit £0 £1 £500
Commissions on stocks Very low None From £8
Stocks exchanges available 37 7 32

WARNING

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.


74-89% of retail CFD accounts lose money

About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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