DeGiro ETF Investing – an Ultimate Guide in 6 Steps

Making the most of your money in Europe has never been easier. There are plenty of platforms now you can use to invest with, my favourite one being DeGiro. In this article, I will guide you through DeGiro ETF investing.

Disclaimer: This article may contain affiliate links to DeGiro. If you use my link to signup for their service, I may receive compensation for this. It’s no extra cost to you and it helps me run this site!

What is an ETF?

An ETF is an exchange-traded fund, a type of investment fund that invests your money in underlying securities. These securities can be stocks, bonds, or real estate for example.

ETFs come in all different colours and sizes. I personally like the cheap ones. They tend to invest in broad-based market indexes (such as the S&P 500 or the MSCI World Index) and are passively managed.

Because they are managed passively, these ETFs are very cheap. I always try to invest in funds with lower costs, since every euro I bring to a fund manager is one I can’t keep for myself!

Luckily, I found that you can invest ETFs with DeGiro pretty easily. They offer a lot of high-quality ETF options from fund managers such as Vanguard, Blackrock (iShares) and Fidelity.

Use my link to sign up for DeGiro. It’s at no extra cost to you, and it helps me run this website. Just click the link of your country and give it a go! NL / DE / AT / ES / IT / PL / SE / UK

The ETFs I invest in are VWRL and IUSN. In this article I explain why I use these two funds.

Who is DeGiro?

I’ve mentioned DeGiro a few times now. Who are they?

DeGiro is an online investment broker originally from The Netherlands. A few guys from another broker formed DeGiro because they wanted to provide cheaper access to investments.

DeGiro offers a lot of cheap ETFs that you can use to build wealth and eventually become financially independent!

Investing in ETFs with DeGiro

In this article, I will guide you through investing in ETFs with DeGiro step by step. It’s not hard, just follow the article and you’ll be fine.

Please always remember I’m not giving financial or investment advice. Always do your own research and/or consult your financial advisor before making financial decisions.

Step 1 – Choose an Investment Strategy

Before you can start buying ETFs with any broker, you have to decide how your investment strategy is going to look like. I have written a lengthy article explaining my investment strategy here.

Although I can’t give investment advice for most people investing in a simple ETF portfolio would be recommended. This is due to low costs and high diversity.

An example could be putting your age as a percentage in bonds, and the rest in a world-wide stock fund such as VWRL or IWDA.

Step 2 – Choose your ETFs to Invest In

After you have decided on your investment strategy, it’s time to pick the ETFs you’ll be buying at DeGiro. There are a few things to consider:

  • Asset type (stocks, bonds, others)
  • Diversity (worldwide or niche)
  • Costs (total expense ratio and DeGiro transaction costs)

I personally chose VWRL and IUSN for my stock portfolio, but your situation might be different.

In my opinion, the best funds for passive investing are VTI and VXUS but unfortunately, the EU government doesn’t allow funds without documentation in a country’s official language anymore. These two funds are only documented in English, so you can’t buy them in The Netherlands.

A website like JustETF.com can also help in choosing the right ETF for you.

Step 3 – Sign-up with DeGiro

Now that you know the funds for your DeGiro ETF investing, the fun starts. You can create your account with DeGiro if you haven’t already.

Use my link to sign up for DeGiro. It’s at no extra cost to you, and it helps me run this website. Just click the link of your country and give it a go! NL / DE / AT / ES / IT / PL / SE / UK

You will click the button to create an account and then you have to fill in the form.

After this first form, you will have to go through another couple of ones. There’s also a knowledge test you have to complete before your account can be created. This doesn’t take long.

Then you have to connect your bank account. This is done easily by putting in 1 cent through iDeal.

Now your account is ready! But I would strongly recommend to fill in form W8-BEN first to be able to claim back some of the dividend tax you paid on any US-based securities.

You can find the form under your account settings > online forms:

DeGiro ETF Investing - Online form W8-BEN
DeGiro ETF Investing – Online form W8-BEN

Step 4 – Transfer Money to DeGiro

With your brand-new account, you are now able to transfer money to DeGiro. You can see DeGiro as just another account where you put your money in.

With the money you put in, you can then buy investment funds.

To put in money, just log-in to your account and press the button to deposit cash into your account. Depending on your country, there are different ways to do this. In The Netherlands, we can easily deposit cash with iDeal, a payment service by Dutch banks.

Step 5 – Purchase your ETFs with DeGiro

With the money in your account, you can start purchasing your ETFs. This is a very easy task. Just look up the ETF code in the search bar on the top-right side of the screen. From there, you can place your buy order.

DeGiro ETF Investing - Lookup ETFs
DeGiro ETF Investing – Lookup ETFs

I have made my two ETFs favourites in the DeGiro portal. That makes them even easier to find!

DeGiro ETF Investing - Favourites
DeGiro ETF Investing – Favourites

Buying ETFs with DeGiro is super easy. You divide the amount you want to invest (i.e. 1,000 euros) by the price of the ETF (i.e. 100 euros) to get the number of shares you’re going to buy. Now if this number isn’t a nice whole number, you have to round down to find the number of shares you can buy.

Then you will just press the green buy icon and put in an order. During market hours I mostly use market orders, but you can also use limit orders (and set the buy limit accordingly) just as well.

DeGiro ETF Investing - Buying ETFs
DeGiro ETF Investing – Buying ETFs

It’s really that simple!

Step 6 – Enjoy the Ride!

Okay, let’s recap what we’ve done here. First, you created an investment strategy. Then you decided on which ETFs to buy. The third step was to create an account at DeGiro after which is deposited cash and purchased your first shares.

You’re now ready to enjoy the ride. You will be tempted to watch your portfolio daily. Do not do this. Stock prices fluctuate heavily. There will be days you’re in the green and days you’re in the red. Don’t sweat these red numbers. Just focus on the long term. Market timing is pointless!

And whatever you do, don’t sell during a market correction or crash! Let your ETFs sit in your account and accumulate more and more wealth over time. Enjoy the ride!

Use my link to sign up for DeGiro. It’s at no extra cost to you, and it helps me run this website. Just click the link of your country and give it a go! NL / DE / AT / ES / IT / PL / SE / UK

Conclusion on DeGiro ETF Investing

As you have seen in this article, investing in ETFs using DeGiro is not hard at all. You just have to come up with an investment strategy, and then execute. I hope the article here helps with that.

How are your investments coming along? Do you use DeGiro, what are your experiences? Let me know in the comments below.

10 thoughts on “DeGiro ETF Investing – an Ultimate Guide in 6 Steps”

  1. Hello! What other trading platforms do you use? Investor protection at DeGiro and others is EUR 20000.

    • Hi CashMove, thanks for your comment! I don’t use any other broker than DeGiro. I’m not sure why it is a problem that only 20k is insured. If DeGiro goes bankrupt, your ETFs are safe (they’re held in a separate holding entity).

  2. Hi B,

    May I ask which type of De Giro account did you choose?
    I’m not sure if it’s mentioned in the article.

    Thanks!

  3. Hello.
    Nice post. Very useful.
    So now that more and more people are talking about an imminent recession you will continue with your investing strategy concerning ETFs, right? But if you would have to start now, would you do it or you will wait a bit and invest in something else?

    Ciao

    D

    • Hi Daniel, I’m not qualified to give investment advice, you will have to make your own decisions. What I’m going to say is my opinion.
      In my opinion you should start as soon as you have the money. Because we don’t know where the market is going, and on average the market goes up more often than down, investing sooner rather than later is on average a good decision. Of course this can mean that you will lose out a little bit if you invest right before the crash. But the opposite is also true. If you wait for a crash, but that happens only after another 50% gain, you have lost money.
      Make your own decisions, but don’t be afraid. Maybe start small, spread your allocation to bonds if you’re risk averse. Keeping money in the bank is rarely good advice.

  4. Hi B, after listening to all of the podcasts, now enjoying the websites as well (thumbs up!). Is there any difference in where to buy the ETF’s? For example, VWRL can be bought at Euronext, Swiss or London? Bart

    • Hi Bart, thanks for listening and reading! As for your question, it does make sense with regards to liquidity for instance. If the liquidity (daily trade volume) is good, it doesn’t matter where you buy the tracker. Even the currency in which you buy doesn’t matter (since the actual pricing of the tracker is based on its underlying assets, not the currency of the ETF itself). Currencies do matter for FX fees, so if your broker is charging additional fees for trades in foreign currencies, try to find one listed in your own.

      Of course this is not financial advice, merely some clues about where to look. Please do your own research.
      For what it’s worth, I buy the EUR denominated tracker on Euronext but the others track the same index so will yield the same returns (after considering exchange rates).

  5. Thanks for the article. I have a DeGiro account. A few of the ETFs that I’m interested in are only traded on the LSE (London Stock Exchange). My account is in Euro. Is there any drawback in trading on the LSE with a euro account? Thanks!!!

    • Hi Rick. Please remember that I don’t give financial advice. What I write about here is just my opinion. You have to make your own choices.
      Now, with that out of the way, let’s look at what’s going on.

      If you want to invest in a fund that’s listed on the LSE and is denominated in GBP, you will have to transfer your euros to pounds when you buy the fund. As far as I know, DeGiro does this automatically for you when you place a buy order. Investing in a GBP fund is no problem. If the fund is diversified across the world, i.e. many currencies, it doesn’t matter what currency the fund itself is. Heck, you can even buy the same ETF in EUR, GBP, CHF, and the performance might look different. However, this is not true. If you correct for currency rates changing, their performances will be equal or close to equal because they track the same stocks.

      So your question does it matter if I invest in funds on the LSE, well probably not. You will most likely have to pay your broker for the connectivity to this exchange, but that is only a few euros per year, I pay 2.50 EUR per exchange per year.

Leave a comment