DEGIRO vs Interactive Brokers (2026):
Full Comparison for EU Investors
The decision comes down to four things: fees, FX workflow, product access, and how far you’ll scale. DEGIRO can be a clean, low-cost Europe-first ETF setup. IBKR is usually the answer if you want one broker for the long run — better FX rates, fractional shares, cash interest, and no ceiling as the portfolio grows.
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TL;DR
- You’re EU-based and mostly buying UCITS ETFs in EUR.
- You want a clean, low-friction interface with fewer settings.
- Most buys will be Core Selection ETFs on Tradegate (€1/trade).
- You don’t need fractional shares, cash interest, or multi-currency handling.
- Simple “boring autopilot” ETF investing is the entire plan.
- You want one core broker you won’t outgrow as the portfolio grows.
- Multi-currency workflow matters — deposit EUR, convert once, hold USD.
- You want fractional shares and interest on uninvested cash.
- A joint or business account is relevant to your situation.
- Lower FX costs are worth the longer initial account setup.
Pros and cons
Both brokers are among the best options for European investors. Neither is objectively better — the right call depends on how much your setup will grow in complexity.
- Core Selection ETFs on Tradegate: €1 per trade, no annual connectivity fee
- Clean, accessible interface — low learning curve
- No custody fee, no inactivity fee, no withdrawal fee
- Broad UCITS ETF catalogue across European exchanges
- Holds a banking licence via flatexDEGIRO Bank SE
- Fast account opening — typically within one day
- 0.25% FX fee on every foreign-currency trade (AutoFX)
- No fractional shares
- No savings plan / automated recurring investing
- 0% interest on uninvested cash
- No joint or business accounts
- Uses payment for order flow (PFOF) — Germany’s transitional MiFIR exemption expires June 30, 2026, when the EU-wide ban becomes fully effective
- Past regulatory issues with Dutch AFM
- No demo account
- Best-in-class FX rates (~0.002%); $2 minimum per bulk conversion
- Fractional shares on stocks and ETFs
- Competitive interest on cash balances above €10,000
- Joint and business accounts available
- Widest market and product access for EU retail investors
- No PFOF; securities lending is opt-in only
- Recurring Investments feature for automated buys — normal commissions still apply per purchase
- Free paper trading / demo account
- Account opening takes ~3 days; more verification steps
- Higher initial complexity — more menus, more settings
- €3 per EU ETF trade on Fixed pricing (same as DEGIRO non-core)
- No banking licence
- Customer support is English-only for most European users
- Past regulatory fine ($38m AML, 2020)
Overview comparison
The key structural differences at a glance. The fee detail and FX maths are in the section below.
| Category | DEGIRO | Interactive Brokers |
|---|---|---|
| Best fit | Simple EU-focused UCITS ETF buy-and-hold, EUR-only contributions | Core “forever broker” — scale, multi-currency, fractional shares |
| Founded | 2013 (retail platform) | 1978 |
| Regulators | BaFin (DE), AFM (NL), DNB (NL) | SEC (US), FCA (UK), CBI (IE) |
| Banking licence | Yes — flatexDEGIRO Bank SE | No |
| Investor protection | 90% of losses, max €20,000 (EdW, Germany) | 90% of losses, max €20,000 (ICCL, Ireland) |
| FX markup | 0.25% per trade (AutoFX) | ~0.002%; $2 min per conversion |
| Fractional shares | No | Yes |
| Cash interest | 0% | Yes — above €10,000; proportional rate for accounts under €100,000 NAV |
| Savings plan / recurring | No | Partial — commissions apply per purchase |
| Joint / business accounts | No | Yes |
| Payment for order flow (PFOF) | Yes — until June 30, 2026 (Germany’s MiFIR exemption) | No |
| Account opening time | ~1 day | ~3 days |
| Platform complexity | Lower — good for beginners | Higher — more tools, more settings |
| Outgrow risk | Higher if needs grow | Very low — built to scale |
Real fees — line by line
Headline commissions are rarely the whole story. The gaps that compound over time are in FX markup, connectivity fees, and cash interest. Here is the complete picture.
| Fee | DEGIRO | IBKR (Fixed pricing) |
|---|---|---|
| Core Selection ETF (Tradegate) | €1 handling fee — no connectivity fee | Not applicable — no equivalent free tier |
| Standard ETF / stocks (EU exchanges) | €3 per trade | €3 flat (trades ≤ €6,000); 0.05% above |
| Minimum commission | €3 effective | €3 (Fixed); €1.25 (Tiered) |
| FX markup | 0.25% — applied on every foreign-currency trade | ~0.002% — applied once on bulk conversion |
| Fixed FX fee | None (% only) | $2 minimum per conversion |
| Connectivity fee | €0 (Tradegate/Core ETFs); €2.50/yr per other exchange | €0 |
| Annual custody fee | 0% | 0% |
| Cash interest (uninvested) | 0% | Competitive rate on balances above €10,000 |
| Inactivity fee | None | None |
| Withdrawal fee | None | 1 free/month (SEPA); €1 each after |
| Minimum deposit | €0 | €0 |
Deep dive: FX drag on long-term portfolios (study) · Cheapest FX brokers in Europe
Product access — start with what you can actually buy
For most EU retail investors, the US ETF question is settled by regulation before you even choose a broker. Once you know what’s accessible to your profile, the comparison gets much simpler.
| Asset class | DEGIRO | IBKR |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes (stocks and ETFs) |
| Bonds | Yes | Yes |
| Options / Futures | Yes (limited) | Yes (broad access) |
| Spot FX | No | Yes |
| CFDs | No | Yes (EU retail, with leverage limits) |
| Crypto | Yes (select coins) | No (crypto futures only) |
| Markets / exchanges | 50+ exchanges | 150+ markets, 33 countries |
- Many EU retail investors are effectively UCITS-only for tickers like VTI, SPY, QQQ due to PRIIPs/KID rules.
- Use UCITS equivalents — same index exposure, compliant wrapper, no meaningful long-term performance difference.
- Both DEGIRO and IBKR have deep UCITS ETF catalogues. Don’t switch brokers chasing a loophole.
- IBKR supports fractional shares on both stocks and ETFs. DEGIRO does not.
- For small monthly contributions, this means every euro gets invested at IBKR — no leftover cash sitting idle.
- At DEGIRO, you buy whole units. At €100/trade, leftover cash below one ETF unit sits uninvested at 0%.
See: UCITS vs US ETFs — full guide · Best broker for US ETFs (non-US investors)
Safety, regulation, and what to know before depositing
Both are large, regulated, publicly listed companies. The structural differences are worth understanding before committing to either.
| Criterion | DEGIRO | Interactive Brokers |
|---|---|---|
| Primary regulators (EU) | BaFin (DE), AFM (NL), DNB (NL) | CBI (IE), FCA (UK), SEC (US) |
| Investor compensation | 90% of losses, max €20,000 — EdW (Germany) | 90% of losses, max €20,000 — ICCL (Ireland) |
| Cash deposit guarantee | Up to €100,000 (banking licence) | Not a bank — cash held in segregated accounts |
| Banking licence | Yes — flatexDEGIRO Bank SE | No |
| Listed entity | Yes — Frankfurt (FLT) | Yes — NASDAQ (IBKR) |
| Asset segregation | Yes | Yes |
| Securities lending | Opt-in; off by default since Oct 2025; 50% revenue share if enabled | Opt-in only (Stock Yield Enhancement Programme) |
| Payment for order flow (PFOF) | Yes — until June 30, 2026 (Germany’s MiFIR exemption) | No |
| Past regulatory issues | Yes — AFM fine (Netherlands) | Yes — $38m AML fine (2020) |
- PFOF: Payment for order flow was banned across the EU under the MiFIR revision (Article 39a), effective March 28, 2024 — but Germany was the only member state to secure a transitional exemption, letting BaFin-regulated firms like DEGIRO continue receiving PFOF on domestic client orders. That exemption expires June 30, 2026, after which DEGIRO can no longer use PFOF for any EU client.
- Securities lending: Since October 2025, lending is opt-in and off by default for all accounts — your shares will not be lent unless you actively enable it in account settings. If you opt in, DEGIRO shares 50% of lending revenue with you via Sharegain, with collateral held at 104%. The Custody account is no longer available to new clients. Account types explained →
- Past AFM issues: DEGIRO had past regulatory issues with the Dutch Authority for the Financial Markets. These were resolved following the flatexDEGIRO merger, which brought stronger banking oversight.
- No PFOF: IBKR does not sell order flow. Orders are routed through their SmartRoutingSM system, which seeks the best available execution price.
- Securities lending opt-in: IBKR’s Stock Yield Enhancement Programme is fully opt-in. Your assets are not lent without your consent.
- AML fine: IBKR paid a $38m fine in 2020 related to anti-money laundering process failures. This was a procedural enforcement action — IBKR’s overall regulatory track record is considered strong.
- Scale: IBKR manages client assets well above any European neobroker — a meaningful indicator of operational depth.
Account types, opening, and practical features
The practical features that determine whether a broker fits your life — not just your portfolio.
| Feature | DEGIRO | Interactive Brokers |
|---|---|---|
| Account opening time | ~1 day | ~3 days (more verification) |
| Joint accounts | No | Yes |
| Business / company accounts | No | Yes |
| Children’s accounts | No | No |
| Fractional shares | No | Yes (stocks and ETFs) |
| Savings plan / recurring buy | No | Partial — Recurring Investments feature; normal commissions apply |
| Demo / paper trading | No | Yes (full paper trading account) |
| Mobile app | Yes | Yes (IBKR GlobalTrader + Client Portal) |
| Web platform | Yes | Yes (Client Portal + TWS) |
| Ease of use | High — simpler interface | Medium — more powerful, steeper start |
| Customer support languages | Local language in most EU countries | English primary; limited local-language support |
Platform and workflow: the best one feels boring
For long-term ETF investing, the best platform is the one that reduces decision points and keeps you consistent. Complexity is only worth it when it solves a real constraint in your workflow.
- Clean interface — fewer menus, fewer temptations to tinker.
- Good “deposit → search → buy” flow for EU UCITS ETF investors.
- Local-language support in most EU markets — useful if English isn’t your first language.
- No savings plan means you execute manually each month — a small friction point for consistent DCA investors.
- More menus and settings — the initial setup takes effort, but the day-to-day use simplifies.
- Recurring buy feature removes the monthly manual step — set once, runs automatically.
- Currency conversion is a separate step — build the habit of converting once in bulk, then investing from the converted balance.
- Paper trading lets you get familiar before committing real money.
Who each broker actually fits
- EU investors buying Core Selection UCITS ETFs in EUR — €1/trade on Tradegate is genuinely competitive.
- Beginners who want a fast, clean account with no complicated setup.
- Investors who need local-language customer support.
- People with simple needs that won’t grow in complexity: one account, one currency, one ETF.
- Investors who want one core broker for the next 20+ years and don’t want to switch.
- Anyone converting currency regularly or investing in assets across multiple currency zones.
- Investors who want fractional shares to deploy every euro of each monthly contribution.
- Those who hold meaningful cash between investments and want interest on it.
- Investors who need joint or business account structures.
If your plan is to deposit EUR and regularly buy USD-priced assets — or if you want to build a multi-currency portfolio over time — IBKR’s FX advantage is not marginal. At €500/month over 10 years, the difference in direct FX costs alone is around €131 (before compounding). At €2,000/month over the same period, that number moves proportionally. It’s the kind of drag that doesn’t feel painful month to month but becomes significant at scale.
The DEGIRO case is strongest for investors who invest entirely in EUR-denominated UCITS ETFs on European exchanges — where the AutoFX charge never triggers. That’s a valid approach and DEGIRO is cost-competitive for it.
Ready to open an account?
DEGIRO for a simple EUR-first UCITS ETF workflow at low per-trade cost. IBKR if you want one broker you won’t outgrow — better FX, fractional shares, and cash interest at scale.
Go deeper
Frequently asked questions
Which broker is better for long-term UCITS ETF investing in Europe?
DEGIRO works well for a simple Europe-first UCITS ETF plan. If you stick to Core Selection ETFs on Tradegate, you pay €1 per trade with no annual connectivity fee — that’s genuinely competitive for small monthly contributions in EUR. IBKR is the stronger default if you want one broker for the long run: better FX workflow, fractional shares so every euro gets deployed, interest on uninvested cash, and more room to grow as the portfolio scales. Which you pick depends on whether your setup will stay simple or grow in complexity over time.
Is FX more important than commissions when comparing DEGIRO and IBKR?
Often yes, for investors who regularly buy assets priced in a different currency from their deposit. DEGIRO charges 0.25% AutoFX on every foreign-currency trade. IBKR charges approximately 0.002% with a $2 minimum per conversion — and the key difference is the bulk-conversion workflow: convert once, invest repeatedly from the converted balance without additional FX charges. For monthly EUR contributors buying USD-priced UCITS ETFs, the gap compounds into real money over 10 years. For investors who buy EUR-denominated UCITS ETFs only, the FX charge at DEGIRO never triggers — and DEGIRO’s €1/trade Core Selection pricing is hard to beat.
Does DEGIRO pay interest on uninvested cash?
No. DEGIRO pays 0% interest on uninvested cash balances. Interactive Brokers pays competitive rates on cash balances above €10,000 — though accounts under €100,000 net asset value receive a proportional rate, not the full published figure. Still a real difference for investors who hold meaningful cash between deployments. Verify current IBKR cash interest rates at interactivebrokers.eu as they change with the interest rate environment.
Is DEGIRO safe — what about its regulatory history and PFOF?
DEGIRO is regulated by BaFin, AFM, and DNB, and holds a banking licence via flatexDEGIRO Bank SE. Investor assets are covered up to 90% of losses (max €20,000) under the German EdW scheme, and cash deposits up to €100,000 benefit from the German Deposit Guarantee Scheme. DEGIRO had past regulatory issues with the Dutch AFM, resolved after the flatexDEGIRO merger. DEGIRO has used payment for order flow (PFOF) under a transitional exemption Germany secured from the EU-wide MiFIR ban (Article 39a) — that exemption expires June 30, 2026, after which PFOF is banned across the EU with no remaining carve-outs. Securities lending has been opt-in and off by default since October 2025 — your shares are not lent unless you actively enable it, and DEGIRO now shares 50% of lending income with you if you do. IBKR is regulated by SEC, FCA, and CBI (Ireland), does not use PFOF, and uses securities lending only on an opt-in basis. Both are publicly listed companies — IBKR is generally considered to have the stronger regulatory profile.
When is Interactive Brokers the clear winner over DEGIRO?
IBKR wins clearly when: you convert currency regularly and want institutional FX rates; you want fractional shares to deploy every euro of each monthly contribution; you hold meaningful cash balances and want interest on them; you need a joint or business account; or you want one platform you can keep for decades without hitting a ceiling. The trade-off is account opening takes ~3 days (versus ~1 day for DEGIRO), the platform has a steeper initial learning curve, and customer support is primarily in English. See the IBKR account opening guide to navigate setup without friction.
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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.