DEGIRO account types: Basic vs Custody (what matters)

Q: Does Custody eliminate all risk?

No. It removes the securities lending dimension, but you still face normal broker/market risks and you add fee drag on dividends/coupons and certain corporate actions.

Q: If I’m unsure, what’s the safest default decision?

If you mostly buy accumulating ETFs and want to avoid lending, Custody is a rational default on DEGIRO. If you want a broker that scales with broad access and long-term simplicity, IBKR is often the clean default.

Q: What fees should I check before deciding?

Check dividend/coupon processing fees, corporate action fees, FX handling, and the exchanges you’ll use. Decide based on your portfolio behavior.

The decision is simple: Basic keeps fees low but may involve securities lending. Custody avoids lending, but adds dividend/coupon processing fees (and some corporate action fees). If you mostly buy accumulating UCITS ETFs, Custody can be a clean fit.

DEGIRO Basic vs Custody account types hero banner comparing two account options with a central “vs” lightning bolt, showing feature lists for low fees and securities lending on Basic versus custody fees, no lending, and stronger asset separation on Custody, with coins and market charts in the background.

Educational content only. Not personalized investment advice.

Quick verdict

Default for most long-term ETF investors: Basic (simpler, usually cheaper).
Choose Custody only if: you explicitly value “no share lending” enough to accept extra friction/costs.
Reality check: the big long-run leak is usually fees + FX + spreads, not this setting.

DEGIRO Basic vs Custody (what actually changes)

Topic	Basic	Custody
Share lending	May be used	Not used
Dividends	Standard handling	Often higher fees / more friction
Costs	Usually lower	Often higher (depends on product)
Best for	Plain ETF investing	Investors optimizing for “no lending”

Decision rules (boring and correct)

If you’re building a long-term ETF plan and want minimal admin: Basic.
If you won’t sleep well knowing share lending exists (even if it’s controlled): Custody.
If you buy income-heavy products and care about dividend costs: run the numbers; Custody can be worse.

If you’re still optimizing the wrong thing, read Fees really matter.

What changes (and what doesn’t)

Changes: share lending policy, and potentially dividend/handling costs depending on product.
Doesn’t change: your ETF selection quality, your savings rate, or whether you stick to the plan.

What “Basic” and “Custody” actually change

Basic

Designed for low ongoing costs.
May involve securities lending (DEGIRO can lend out some assets under this profile).
Best if you hold dividend-heavy positions and want to avoid extra processing fees.

Custody

Designed to be non-lending (assets are not lent out).
Trade-off: dividend/coupon processing fees and some corporate action fees.
Best if you mainly hold accumulating ETFs (few/no dividends).

The fee trade-off that matters

Custody income fees (dividends/coupons)

Custody accounts can charge a processing fee when you receive cash dividends or bond coupons. In the DEGIRO Custody fee schedule, this is listed as:

Coupon/dividend processing: € 1.00 + 3.00% (capped)
Corporate actions processing: € 7.50 (when applicable)

The fixed €1 component hits hardest when you receive many small dividend payments. If you expect regular dividends, Basic is often the cheaper profile.

Simple rule

Mostly accumulating ETFs: Custody can stay low-friction (few income events).
Dividend-focused portfolio: Custody can create ongoing fee drag → Basic usually wins.
Mixed portfolio: run it like a business decision: expected income events × fees vs the lending trade-off.

How to choose in 60 seconds

1) What do you hold?

Accumulating UCITS ETFs → Custody becomes more attractive.

Dividend stocks / distributing ETFs → Basic is often cheaper.

2) What do you optimize for?

Optimize for lowest fees → Basic.

Optimize for no lending → Custody (accept income fees).

3) Are you overthinking it?

If you want one broker that scales and you’re not married to DEGIRO, IBKR is usually the clean default for serious long-term ETF investing.

Common scenarios

Scenario A: “I only buy one world ETF”

If it’s an accumulating ETF, Custody can be reasonable because you avoid recurring dividend fees. If it’s distributing, Basic often avoids pointless fee drag.

Scenario B: “I’m building a dividend portfolio”

Basic is usually the practical choice. Custody can turn dividends into a repeated fee event.

Scenario C: “I want maximum safety, minimal complexity”

Custody reduces the lending dimension, but it is not “free safety.” You pay via income/corporate action fees. If you want the cleanest scaling path, consider IBKR.

If you want a long-term default broker

Prefer deep market access, strong FX workflow, and a single account that scales with you.

Open Interactive Brokers

Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.

CLUSTER

Next steps: DEGIRO account choice

DEGIRO review Brokers

What DEGIRO is good at, what to watch, and who it fits long-term.

DEGIRO vs Interactive Brokers Brokers

If you want a broker that scales across markets and currencies, compare here.

DEGIRO vs Trading 212 Brokers

Simple recurring investing vs broader exchange access and “fee” structure.

Best broker for UCITS ETFs (Europe) Brokers

If you’re building a long-run UCITS ETF plan, match the broker to your workflow.

CLUSTER

Next steps: dividends, costs, and tax drag

Dividend yield trap Learn

Yield can hide cost drag and poor total return. Know what you’re optimizing.

Accumulating vs distributing ETFs Learn

Cash distributions can trigger extra friction; accumulation often simplifies.

Fees really matter Learn

The real costs are not just commissions: spreads, FX, and recurring frictions.

Study: accumulating vs distributing tax drag Study

A practical model of how distributions can create recurring drag over time.

FAQ

Does Custody eliminate all risk?

No. It removes the “securities lending” dimension, but you still face normal broker/market risks and you add specific fee drag on dividends/coupons and certain corporate actions.

Is Custody worth it for accumulating ETFs?

Often yes, because accumulating ETFs typically don’t distribute cash dividends to you, so the dividend-processing fees may rarely trigger. You still accept the possibility of corporate action fees in edge cases.

Will Custody be expensive for dividend stocks?

It can be. If you receive frequent or small dividend payments, the fixed component of the processing fee can create meaningful drag. Basic is usually the lower-cost profile for income-heavy portfolios.

If I’m unsure, what’s the safest default decision?

If you are committed to DEGIRO and you mostly buy accumulating ETFs, Custody is a rational default. If you want a broker that scales across markets/products and you care about long-term simplicity, IBKR is often the clean default.

What fees should I check before deciding?

Check (1) dividend/coupon processing fees, (2) corporate action fees, (3) FX handling, and (4) the exchanges you’ll actually use. Then decide based on your portfolio behavior, not hypotheticals.

If you want the simple EU workflow, DEGIRO can be enough. If you want one “core broker” you won’t outgrow, IBKR is the default upgrade path.

Open DEGIRO → Open IBKR → Read DEGIRO review →

Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.

Educational content only. Not personalized investment advice.

Investments can lose value and past performance does not guarantee future results. You are responsible for your own decisions and for confirming tax and legal rules in your country. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.