DEGIRO Basic vs Custody:
what actually matters in 2026
For most new DEGIRO users, the old Basic vs Custody binary is largely gone. The real 2026 question is different: if you already hold a legacy Custody account, should you keep it? And if you’re on Basic, what does the securities lending opt-in actually mean? This guide covers both angles.
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TL;DR
- You open a Basic profile by default.
- Securities lending is a separate opt-in — verify your settings.
- Basic is right for most long-term ETF investors.
- If you ever want margin or derivatives, you must stay on Basic — Custody blocks that upgrade path.
- Keeping Custody makes sense if you hold mostly accumulating ETFs — income fees rarely fire.
- Review carefully if you hold distributing ETFs or dividend stocks — income fees add up.
- Switching away may not be reversible — verify with DEGIRO before changing anything.
What actually changes between the two accounts
The accounts look the same from the outside. Underneath, a few things differ: lending treatment, income-event fee profile, and the upgrade path available to you.
| Feature | Basic | Custody |
|---|---|---|
| Securities lending | Opt-in — DEGIRO may lend your holdings if you enable it | Not used |
| Dividend processing | No extra fee | Fee applies: ~€1 + 3% (capped) |
| Coupon processing (bonds) | No extra fee | Same fee structure as dividends |
| Corporate actions (optional) | No extra fee | ~€7.50 per event (e.g. optional dividend choices) |
| Core Selection ETFs | Free trades (€1 handling fee applies) | Same — Core Selection works on both account types |
| Trading commissions | Same as Custody | Same as Basic |
| Upgrade to Active / Trader | Available | Not available — Custody blocks this path |
| Best for | Most long-term ETF investors | Legacy accumulating ETF investors who want no lending |
Basic isn’t unsafe — the SPV structure applies to both
One of the most common misconceptions about DEGIRO: that Custody is “safer” in a structural sense. It isn’t — at least not in the way most people assume.
DEGIRO holds client assets through omnibus accounts at custodians, held in the name of special-purpose vehicles (SPVs) — separate legal entities that exist solely to safeguard and administer client assets. These are legally separated from flatexDEGIRO’s own balance sheet, meaning DEGIRO’s creditors cannot reach your holdings if the broker runs into financial trouble.
This structure applies regardless of whether you hold a Basic or Custody account. The choice between the two does not change the fundamental SPV segregation. Basic and Custody users sit behind the same asset-separation layer.
- Changes: whether your securities can be lent out, and how income events are charged.
- Doesn’t change: the SPV asset segregation layer, broker insolvency protections, market risk, ETF issuer risk, currency risk, or trading costs.
- Investor compensation: both account types fall under the same national investor protection scheme (typically up to €20,000 for securities not returned, plus up to €100,000 for cash balances through the deposit guarantee scheme — verify for your country).
The dividend fee problem with Custody
The Custody fee on income events sounds small in isolation. On a portfolio that generates frequent distributions, it becomes a recurring drag that compounds quietly.
- Accumulating UCITS ETFs — no dividend distributions, so the processing fee almost never fires.
- Simple 1–2 ETF portfolios that rarely trigger corporate action events.
- Investors for whom “no lending” is a firm principle, not just a nice-to-have.
- Distributing ETFs — a fee fires every time a distribution lands, even small ones.
- Dividend stocks — quarterly or semi-annual payments each cost ~€1 + 3%.
- Bond ETFs — coupon processing carries the same charge, on every payment event.
- Optional dividends (stock vs cash choices) — these trigger the higher ~€7.50 corporate action fee.
Suppose you hold a distributing ETF that pays a quarterly dividend of €40. On a Custody account, that event costs ~€2.20 (€1 fixed + 3% of €40). Over four quarters that’s ~€8.80/year just in dividend processing fees — before a single trading commission.
On Basic, the same four dividend payments cost €0 in processing fees. The lending question becomes: is the peace of mind worth €8.80+ per year? For a small portfolio the maths often says no. For a large accumulating portfolio with rare income events, Custody can be a clean fit.
How DEGIRO securities lending actually works
For new DEGIRO users, lending is no longer baked into the account type — it’s a separate opt-in. Here’s what you’re actually opting into.
- Lending is opt-in and voluntary — you must explicitly enable it.
- If opted in, all eligible securities in your portfolio may be lent — you cannot exclude specific holdings.
- DEGIRO acts as the direct counterparty to the loan.
- Collateral is provided at ~105% of loan value and adjusted daily — but can dip below 105% intraday.
- Lending income is split 50/50 between you and DEGIRO after costs. Lending is demand-based and not guaranteed.
- You can opt out at any time — verify the current process on the DEGIRO platform.
- Counterparty risk: DEGIRO is your counterparty — you rely on DEGIRO being able to return equivalent securities or cash.
- Collateral risk: collateral may not fully cover the position value in a stress event.
- Selling delay: recalling lent securities can create a short delay before you can sell.
- Voting rights: legal ownership — including voting rights — generally transfers to the borrower for the loan period.
- Substitute payments: if securities are lent over a dividend record date, you may receive a substitute payment instead of a normal dividend, potentially arriving later.
- Tax implications: substitute payments may be taxed differently from dividends in your country. Lending may also affect reporting and holding periods.
Custody locks out the Active and Trader upgrade path
Most long-term passive investors will never care about this. But if there’s any chance you’ll want margin, short selling, or derivatives on DEGIRO in the future, it changes the decision entirely.
If you want to use margin lending, short selling, or derivatives products in the future, you can upgrade from Basic to an Active or Trader profile on DEGIRO. These are largely eligibility-gated by DEGIRO, but the path is open from a Basic starting point.
Most passive ETF investors never upgrade. But the optionality exists.
Custody accounts cannot be upgraded to Active or Trader profiles. If you’re on Custody and think you might ever want derivatives access or margin on DEGIRO, you’d need to move back to Basic first — verify the current switching process and any restrictions directly with DEGIRO.
The practical implication: for a strict buy-and-hold ETF investor this doesn’t matter. For anyone with broader ambitions on the platform, it’s a meaningful constraint to understand before committing to Custody.
Decision table by investor type
The right framing depends on whether you’re a new user or already hold a legacy Custody account.
| Your situation | What matters | Suggested path |
|---|---|---|
| New DEGIRO user | Basic is the default. Lending is a separate opt-in decision. | Basic — decide on lending separately |
| Legacy Custody + accumulating ETFs | Income fees rarely fire; Custody overhead is low | Keeping Custody is reasonable |
| Legacy Custody + distributing ETFs / dividend stocks | Income fees compound against you on every payment event | Review — Basic may be cheaper overall |
| Any investor who values no lending | Lending is now opt-in on Basic — you can simply not enable it | Basic with lending disabled is a clean option |
| Any investor who may want margin or derivatives | Custody permanently closes the Active/Trader upgrade path | Must stay on Basic |
| Governance-focused shareholder | Lending transfers voting rights during loan period | Do not opt into lending |
| Tax-sensitive cross-border EU investor | Substitute payments may be taxed differently from dividends | Verify local tax treatment before enabling lending |
If you want a broker you genuinely won’t outgrow — better FX handling, institutional execution, and broader market access — IBKR avoids this whole decision entirely. The Basic vs Custody trade-off is DEGIRO-specific. IBKR’s asset protection structure is different and the platform scales further without the same account-type friction.
The trade-off: more initial setup vs a cleaner long-term path. Worth it at scale.
Which account type fits your situation
Either account works. Accumulating ETFs don’t push cash dividends to you, so Custody’s income fees almost never apply. If you already have a legacy Custody account and hold accumulating ETFs, keeping it is a clean fit with minimal cost overhead. For new accounts: Basic with lending disabled achieves the same result. New user default: Basic.
Basic is almost always the cheaper choice. Custody turns every dividend payment into a fee event. With a portfolio generating quarterly distributions across multiple positions, the drag adds up quickly and isn’t offset by the lending benefit. If you’re on legacy Custody with dividend stocks, this is worth reviewing. Default: Basic.
If you’re optimising for scalability and the fewest structural limitations, IBKR may be the cleaner starting point. It sidesteps the Basic vs Custody question entirely and offers better FX handling and market access for serious long-term investors. Consider IBKR instead.
Ready to open your account?
For most new DEGIRO users in 2026: open Basic, verify your securities lending settings, and check whether Core Selection covers the ETFs you want. If you want a broker you won’t outgrow, IBKR is the alternative worth considering.
Go deeper
Frequently asked questions
Is DEGIRO Custody still available for new users?
In most current DEGIRO markets, Custody is not presented as a standard new-account profile. New users open a Basic account, and securities lending is a separate opt-in product setting. Custody mainly matters for legacy users who opened one before DEGIRO restructured account options. Always verify the current position on your country-specific DEGIRO site before acting.
Is securities lending automatic on a DEGIRO Basic account?
DEGIRO currently describes securities lending as voluntary and opt-in. You should verify your own product settings inside the DEGIRO platform to confirm your current status. If you haven’t explicitly opted in, your securities should not be lent. This is a change from older account structures where lending was a default condition of the Basic profile.
Can I choose which securities DEGIRO lends?
No. DEGIRO states that if you opt into securities lending, all eligible shares, ETFs, and bonds in your portfolio may be lent. You cannot select only specific holdings to exclude. This is worth understanding before enabling lending — it applies to your entire eligible portfolio, not just positions you’d be comfortable lending.
Do I lose voting rights if my securities are lent?
Usually yes, for the duration of the loan. DEGIRO states that legal ownership and voting rights generally transfer to the borrower while securities are on loan, unless they are recalled before the relevant record date. If exercising shareholder voting rights matters to you — including for ESG or governance reasons — securities lending is not just a yield and risk decision, it also affects your ability to vote.
Can securities lending affect dividends or taxes?
Yes. If securities are lent on the dividend record date, you may receive a substitute payment instead of the normal dividend flow, and it may arrive later than a standard dividend. DEGIRO also warns that lending may affect tax treatment, reporting obligations, and holding periods depending on your tax residency and the product involved. For EU investors in high-withholding-tax countries or those using accumulating ETFs for tax efficiency, this is worth verifying with a local tax adviser before opting in.
Does Custody eliminate all risk on DEGIRO?
No. It removes the securities lending dimension, but you still face normal broker and market risks. Both Basic and Custody accounts sit behind the same SPV asset-segregation structure — DEGIRO holds client assets through separate legal entities that are isolated from the broker’s own balance sheet. Custody is a different risk and cost profile from Basic, not a structural safety upgrade.
Is Custody worth it for accumulating ETFs?
Often yes, for existing Custody holders. Accumulating ETFs don’t distribute cash dividends directly — the fund reinvests them internally — so the Custody processing fee almost never triggers. Corporate action fees can still apply in edge cases, but for a simple accumulating ETF portfolio, Custody’s cost overhead is low. For new accounts, Basic with lending disabled achieves a similar outcome without the structural constraints of Custody.
Can I upgrade from a Custody account to Active or Trader profile?
No. Active and Trader profiles — which unlock margin lending, short selling, and derivatives — are only accessible from a Basic starting point. A Custody account cannot be upgraded to these profiles. For the vast majority of passive ETF investors this doesn’t matter. But if there’s any chance you’ll want these features on DEGIRO in the future, you should not be on a Custody account.
Can I switch between Basic and Custody on DEGIRO?
Switching is possible in some cases but not always seamless. Moving back to a Basic profile from Active or Trader requires a specific process through DEGIRO’s helpdesk. Moving to a Custody structure may no longer be available for existing Basic accounts in many markets. Verify your country-specific options directly with DEGIRO before making any changes — the process and availability vary by country and account history.
QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.