DEGIRO Basic vs Custody:
the decision that actually matters
The choice comes down to one trade-off: Basic keeps fees low but allows securities lending. Custody stops lending but adds dividend and coupon processing fees. For most long-term ETF investors the answer is straightforward — once you understand what each actually costs.
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TL;DR
- You want the lowest possible cost by default.
- You hold distributing ETFs or dividend-paying stocks.
- Securities lending doesn’t concern you.
- You want simplicity without recurring fee events.
- You want securities lending off your account.
- You hold mostly accumulating UCITS ETFs (dividend fees rarely trigger).
- You can accept the dividend/coupon processing fees.
- The lending dimension is genuinely important to you.
What actually changes between the two accounts
The accounts look the same from the outside. Underneath, two things differ: whether your securities can be lent, and how income events are processed.
| Feature | Basic | Custody |
|---|---|---|
| Securities lending | Permitted — DEGIRO may lend your holdings | Not used |
| Dividend processing | Standard — no extra fee | Fee applies: ~€1 + 3% (capped) |
| Coupon processing (bonds) | Standard — no extra fee | Same fee structure as dividends |
| Corporate actions | No extra fee | ~€7.50 per event (when applicable) |
| Trading commissions | Same as Custody | Same as Basic |
| Best for | Most long-term ETF investors | Accumulating ETF investors who want no lending |
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 actions.
- 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%.
- Mixed portfolios with bond ETFs (coupon processing carries the same charge).
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 you’ve paid 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, possibly not. For a large one, the maths changes.
How to choose in 60 seconds
Accumulating UCITS ETFs → Custody becomes viable (dividend fees rarely fire).
Distributing ETFs or dividend stocks → Basic is almost always cheaper.
Lowest total cost → Basic.
No securities lending, full stop → Custody (and accept income fees as the price of that preference).
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.
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. Since accumulating ETFs don’t push cash dividends to you, Custody’s income fees almost never apply. If avoiding lending matters to you, Custody is a clean fit with minimal cost overhead. Default: Custody if lending concerns you, otherwise 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, that drag adds up quickly and isn’t offset by the lending benefit. 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?
Pick the account type that matches your portfolio. If you hold mostly accumulating ETFs and care about lending, choose Custody. Otherwise, Basic is the simpler default.
Go deeper
Frequently asked questions
Does Custody eliminate all risk on DEGIRO?
No. It removes the securities lending dimension, but you still face normal broker and market risks. You also add specific fee drag on dividends, coupons, and certain corporate actions — so Custody is a different risk/cost profile, not a free upgrade.
Is Custody worth it for accumulating ETFs?
Often yes. Accumulating ETFs don’t distribute cash dividends to you directly — the fund reinvests them internally. That means the Custody dividend-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.
Is Custody more expensive for dividend-paying investments?
Yes, meaningfully so. Each time a dividend or coupon lands in a Custody account, DEGIRO charges approximately €1 + 3% of the amount (capped). If you receive quarterly distributions across multiple positions, those fees fire regularly and build real drag over time. Basic is almost always the lower-cost profile for income-heavy portfolios.
What is the default choice between Basic and Custody?
Basic is the lower-cost, lower-friction default for most long-term ETF investors. Choose Custody only if you hold mostly accumulating ETFs and the absence of securities lending genuinely matters to you. The decision shouldn’t be made on vague safety instincts — run it against your actual portfolio and income expectations.
Can I switch between Basic and Custody on DEGIRO?
You can request an account type change through DEGIRO’s platform. Check their current process and any restrictions directly on their official website before assuming it is seamless — the steps and availability may change.
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.