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Summary: DEGIRO, a low-cost European stock broker, primarily targets investors in various EU countries but has temporarily stopped onboarding new clients in the UK. Due to specific regulatory frameworks, DEGIRO's services are not directly regulated by the UK's Financial Conduct Authority, but by European regulators BaFin, DNB, and AFM. This makes the platform limited in scope for UK-based investors.
For global investors seeking a reliable alternative, eToro is a compelling option. With a wide range of investment choices, from stocks to ETFs, eToro offers a user-friendly experience and serves a large international community, making it an excellent substitute for DEGIRO.
What Countries Is DEGIRO Available in?
DEGIRO, a well-regarded European brokerage under the FlatexDegiro umbrella, has recently paused new account creations in the UK for an indefinite period. Originally serving Dutch investors and expanding throughout Europe, DEGIRO has had to cease its UK marketing campaigns and customer onboarding due to unspecified regulatory issues.
The platform is available in several European countries, including but not limited to Germany, France, and the Netherlands. However, its recent pause in the UK highlights the company's ongoing challenges in aligning with varying regulatory frameworks. DEGIRO is regulated by European entities such as BaFin in Germany and the DNB and AFM in the Netherlands, rather than the UK's FCA.
Will DEGIRO Expand to the UK?
At the moment, DEGIRO has suspended new client onboarding in the UK, and the company has not provided a specific timeline for resuming these services. This pause is largely attributed to unspecified regulatory concerns, as DEGIRO is not directly overseen by the UK's Financial Conduct Authority (FCA).
For DEGIRO to recommence its UK operations, it would need to address these regulatory issues and possibly adapt its internal processes to meet the FCA's standards. The firm has indicated a hopeful return to the UK market in the coming months, contingent on resolving these matters.
Where is DEGIRO Licensed?
DEGIRO operates primarily under European regulations, overseen by BaFin in Germany and the DNB and AFM in the Netherlands. DEGIRO UK is a subsidiary of FlatexDEGIRO and is not directly authorized by the UK's Financial Conduct Authority (FCA).
For UK investors, this means that DEGIRO's services are not governed by FCA rules or protected by the UK Financial Services Compensation Scheme. Instead, clients fall under the jurisdiction of German and Dutch laws that apply to FlatexDEGIRO Bank AG. For more information, consult DEGIRO's official disclosures, which are approved under the Financial Services Market Act 2000 (FSMA) by Resolution Compliance Limited.
What is the Best DEGIRO Alternative?
If you're looking for a robust trading platform beyond DEGIRO, especially in the UK where DEGIRO has paused new client onboarding, eToro is a top choice. eToro is a global trading platform offering a diverse range of over 3,000 assets and serving a large community of more than 30 million investors. Known for its user-friendly interface and wide array of investment opportunities, eToro is an excellent alternative for those searching for a reliable and comprehensive substitute to DEGIRO.
In summary, DEGIRO's recent halt in UK client onboarding highlights the complexities it faces with regulatory compliance, as it's not directly overseen by the UK's FCA. For investors seeking a viable alternative, eToro emerges as a strong contender, offering a diverse asset portfolio and a user-friendly interface. Keep an eye on DEGIRO's official channels for updates on their UK availability, but in the meantime, eToro serves as an excellent substitute for global investors.