Our Broker Guides

Our take:

Swissquote has a premium feel, great availability worldwide and a huge range of financial products and services. Combined with solid customer service and its position in the Swiss banking industry, these features make the platform an attractive option for globally mobile and security conscious customers. However, it can feel like a luxury Geneva shopping mall, with everything available but nothing discounted – leaving cost focused investors wondering if what they want could be obtained at less expense elsewhere. 

That said, costs vary by branch and the Luxembourg entity (formely known as Keytrade) is quite competitive.

Our assessment:

The absolute score of 4.0 is driven by solid institutional credentials and global reach boost. The relative category rating of 3.9 is affected by some expensive services. 

Is it suitable for you?

• Passive Investors – For investors worldwide with few options in their location, Swissquote provides a wide range of low cost, passive index funds and ETFs and the advantage of multicurrency accounts. However, the commissions per trade are high and the excessive marketing of crypto, structured products and options detracts from customer experience.
• Semi-active Investors – Swissquote’s high international availability, and access to a massive range of financial products make it worth considering for those moving beyond basic portfolios. But while Swissquote has a great range of services available, few are priced as competitively as market leaders.
• Advanced Investors – Swissquote’s offering of a wide range of ETFs plus derivatives, multicurrency accounts, margin loans, precious metals and crypto means advanced investors can implement complex strategies. They’ll also appreciate the security of a Tier 1 broker with a Swiss banking license. But they’ll need to keep a careful eye on costs, which are relatively high and complicated.

Check if the broker is available in your country

Great Product Range, but Complicated Costs structure

Swissquote aims to provide a 360 digital banking and investing service. Almost every product you can think of is available, plus some you didn’t know existed. The counterpart to this range of products is a tricky pricing structure which differs by account, country, asset holdings, currency and frequency of customer activity. If the goods in the window look attractive, you’ll need to pay close attention to the price tags.

Open an account with DEGIRO

Our score is justified by strong financial performance, transparent reporting and regulatory requirements in Continental Europe and Switzerland. While Swissquote is a prominent online bank and broker known for its retail and institutional services, it operates at a smaller scale compared to systemically important banks.

Ownership & Transparency

Swissquote’s parent company, Swissquote Group Holdings Ltd (we refer in the rest of review simply as ‘Swissquote‘) has been listed on the Six Swiss exchange in Zurich since May 2000. Swissquote is unusual amongst European and UK brokers in having a complex corporate structure, with various entities carrying out different functions and based in different countries. 

Only three Swissquote entities are relevant to our readers, but understanding the way they fit together is worthwhile.

The review will be focusing on the following:

• The Swiss Branch🧀 (Swissquote Bank Ltd)
• The Luxembourg Branch💼 (Swissquote Bank Europe, formely known as Keytrade)
• The Middle East & Asia Branch 🌴 (Swissquote MEA).

Founders Marc Bürki and Paolo Buzzi own respectively 11.5% and 10.4% of the shares in Swissquote Group Holdings. PostFinance AG holds 5% of the equity of the group through its partnership with Swissquote in mobile banking platform Yuh. Bürki remains as CEO and Buzzi is a director. With these individuals holding over 20% of equity, they retain significant influence over the direction of the firm. No other individual or entity owns more than 5% of the group.

Business Profile

Swissquote aims to be “the first bank for digital-first mass affluent traders and investors.” Switzerland is synonymous with prestige, and Swissquote lean into this reputation. They offer a VIP style set of account privileges such as priority customer service contact for those investing over 1 million Euros via the Luxembourg based Swissquote Bank Europe entity.

Regulation & Investor Compensation Schemes

• Luxembourg Branch💼 is governed by EU regulations stipulating that 100,000 Euros of customer cash must be guaranteed in case of the institution failing. EU directives on investor compensation means that at least 20,000 Euros in client securities must be guaranteed.
• Swiss Branch🧀: Swiss banking regulations protect up to 100,000 CHF in cash held with a regulated institution.

Cash Custodians

Swissquote is the custodian of all client cash. Client securities are entirely segregated from the rest of Swissquote’s assets.

Reputation

Swissquote remains a relatively new player in the individual investor space outside of Switzerland, only opening an EU operation in 2019 after its purchase of Internaxx Bank. It’s been known in the region as Keytrade Bank. It has a clean regulatory record except for a fine from the Six Swiss stock exchange in 2023 for a negligent breach of the provisions on ad hoc publicity.

Swissquote doesn’t pitch itself as a low-cost broker, which makes its complicated fee structure less surprising. But low expectations going in don’t make navigating this aspect of a Swissquote account less frustrating. Across the Swiss, Luxembourg and Middle East platforms there are dozens of different fee categories, tier and options. The Swiss Branch’s fees statement runs to over twenty pages. We’ve chosen to highlight only those core fees and costs which dominate retail investors’ choices of platform. This complexity may seriously detract from user experience and impedes prospective clients from trying to determine the total cost of running a portfolio.

Our score is driven by the Luxembourg branch (formely Keytrade) which is quite competitive vs peers.

Platform fees

Platform fees varies by entity:

 

• Swiss Branch🧀: 
  •  up to 50,000 CHF assets: 20 CHF quarterly
  • 50,000-100,000 CHF assets: 25 CHF quarterly
  • 100,000-150,000 CHF assets: 37.5 CHF quarterly
  • >150,000 CHF: 50 CHF quarterly

 

• Luxembourg Branc💼: FREE

 

• Middle East & Asia Branch🌴: 0.15% (min 15 USD per quarter) – the most punitive of the three entities.

Trading Commisions

Read Our Broker Review Scoring Methodology

Swissquote trading commissions follow either a percentage-based model or depend on the exchange you are trading on and the size of the trade. This varies between the three platforms. This is further complicated by the fact that European and Swiss Branch offer free and reduced dealing fees respectively on a range of ETFs offered by providers listed as Prime Partners:

• Swiss Branch🧀: 
  • Prime Partner ETFs: 9 CHF (Flat Fee)
  •  Others: 5 CHF minimum fee stepped structure
• Luxembourg Branch💼:
  • Prime Partner ETFs: Free dealing on trades over €2,500
  • 0.1% of trade value (min €14.95)
• MEA Branch🌴:
  • 0.1% trade value (9 USD minimum) + 0.85% in transaction currency

• Core ETFs flat fee (9 CHF) scheme for dealing in the SixSwiss listed ETFs of a number of core industry players including Vanguard, Amundi, Invesco and WisdomTree.
• Package Scheme: They also offer a packaged flat fee scheme across all exchanges starting at 39 CHF per trade for 20 trades and tapering to 19 CHF per trade for 500 trades. This could be of use to some particularly active investors placing trades over 10,000 CHF.

These are still eye watering costs to those used to running portfolios on low or no cost platforms.  

Overall Fee Simulation vs Competitors

Read Our Broker Review Scoring Methodology

Most of our readers have simple Index portfolios. Using our Broker Total cost calculator, you can estimate the total cost of holding ETFs throughout the investment period. In the below simulation, a 20-year accumulation period broker bill is around €700 with DEGIRO. In comparison, smaller competitors – like Trading 212 or Lightyear – may appear to be more cost-effective. But, these businesses may also change their fee structure over such time horizon, and DEGIRO costs remain very reasonable. None of these peers employ Payment for Order Flow (PFOF), which may lead to additional costs for customers, through higher spreads, as explained in our PFOF guide (that’s the reason we didn’t compare against e.g. Trade Republic). 

Platform fees

Platform fees varies by entity:

 

• Swiss Branch🧀: 
  •  up to 50,000 CHF assets: 20 CHF quarterly
  • 50,000-100,000 CHF assets: 25 CHF quarterly
  • 100,000-150,000 CHF assets: 37.5 CHF quarterly
  • >150,000 CHF: 50 CHF quarterly

 

• Luxembourg Branc💼: FREE

 

• Middle East & Asia Branch🌴: 0.15% (min 15 USD per quarter) – the most punitive of the three entities.

Trading Commisions

Read Our Broker Review Scoring Methodology

Swissquote trading commissions follow either a percentage-based model or depend on the exchange you are trading on and the size of the trade. This varies between the three platforms. This is further complicated by the fact that European and Swiss Branch offer free and reduced dealing fees respectively on a range of ETFs offered by providers listed as Prime Partners:

• Swiss Branch🧀: 
  • Prime Partner ETFs: 9 CHF (Flat Fee)
  •  Others: 5 CHF minimum fee stepped structure
• Luxembourg Branch💼:
  • Prime Partner ETFs: Free dealing on trades over €2,500
  • 0.1% of trade value (min €14.95)
• MEA Branch🌴:
  • 0.1% trade value (9 USD minimum) + 0.85% in transaction currency

Overall Fee Simulation vs Competitors

Read Our Broker Review Scoring Methodology

As a Tier 1 broker pitched at an international customer base, Saxo and Interactive Brokers are natural competitors to Swissquote. Using our BoW broker comparison calculator we can see that while Swiss and the European branches are both less expensive than Saxo, primarily due to Saxo’s much higher custody fees (although these vary by country and can be waived with Sec Lending), both are much more expensive than Interactive Brokers due to the high commission fees charged across the Swissquote group’s platforms.

Simulate you own scenario

Swissquote has a very sophisticated platform catering investors that are interested in sophisticated tools like margin and us market access.  But, for the vast majority of investors, most of its sophisticated features are not necessary to be successful in achieving their financial goals. 

Account Opening Process

Opening a DEGIRO account is generally quick and straightforward. Approval usually takes less than a day, but verification may take longer for non-European passport holders. Requirements include residency in an accepted country (36 in total as per our tool above) and a SEPA bank account. The process involves a selfie and ID scan through the app, with no minimum transfer amount. Response times for email inquiries at DEGIRO can vary by entity, with a minimum wait of 2 days for general questions. Online reviews indicate that resolution times for specific issues may take longer.

Country Availability

DEGIRO distinguishes itself by allowing account openings with each entity, provided your tax residency is in an accepted country and you have a SEPA banking account. The local websites are available exclusively in the respective languages, but accounts can be opened with any entity if the local language is understood. Currently, DEGIRO operates with 16 different entities in 36 countries. Norway, Hungary and UK entities have been suspended. However, whereas UK residents can still apply for an account through a EU entity, this is not the case for Hungarians and Norwegians.

Account Features

DEGIRO offers four account types. Only the first two are relevant for Long-Term Investors:

• Basic – The default option at sign-up, providing access to stocks, ETFs, bonds, and major exchanges without leverage or margin loans.
• Active – Upgradable via an online questionnaire, adding leverage products and margin loans alongside basic account features.
• Trader Accounts – Accessible through customer service, these accounts include all previous products with leverage, typically recommended for advanced investors.

Note that there is no option to open a joint account or an account for your children (anyone below 18 is excluded).

While direct debit transfers from your bank to DEGIRO are possible, DEGIRO lacks an automatic investment plan feature, requiring manual asset purchases.

Mandatory Security Lending

DEGIRO engages in securities lending. Previously, DEGIRO offered a “Custody” account option allowing users to opt out of this practice. However, this account type is no longer available for new users, necessitating acceptance of the associated risks with securities lending when opening an account. Customers do not get any share of the security lending revenues. Instead, custody accounts opened in the past remain security lending free.

Cash Interest

There is no interest on cash for clients. DEGIRO takes 100% of the interest generated.

Internalisation And PFOF

Since mid-2021, DEGIRO began routing some orders to Tradegate, a decision that raised concerns with the Dutch regulator. Following DEGIRO’s acquisition by Flatex, regulatory oversight shifted to Germany, where such practices are even more common. DEGIRO clarified that Tradegate is primarily used for after-hours trading, with an option for users to opt out. FlatexDEGIRO also stated that Payment for Order Flow (PFOF) orders about 1% of total orders, implying minimal impact from upcoming 2026 legislation on the company.

Advanced Features

For Active and Trading accounts, you may use margin loans that have relatively competitive fees: 6.9% or 5.5% as of February 2024. Also, these accounts provide access to Options and Future Markets, however there is no possibility to trade US ETFs. To learn more open the geeky section below.

Investment Type

Methodology

Methodology

Broker Selection Guide

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Our Broker Guides

Our take:

DEGIRO stands out as an appealing option for those seeking an affordable broker. While it might slightly edge higher in costs compared to its rivals, it compensates with transparency— a rare find among many VC-backed direct competitors.

Our assessment:

DEGIRO scores 4.0 on an absolute basis, a high score amongst low-cost brokers that are typically less transparent. It has the same relative score of 4.0 in its Tier 2 category, but for different reasons. While the fees are relatively low, the score is capped by the issues with the platform which forces users to enable security lending.

Is it suitable for you?

• Passive Investors – The platform’s user-friendly interface and straightforward account setup process are significant pluses. The option to select an account in one’s primary language is a distinct advantage. However, the somewhat restricted selection of ETFs outside DEGIRO Ireland, including many from Vanguard, could pose a challenge for some. Nonetheless, for English-speaking investors, DEGIRO Irelands is an alternative. A notable shortfall is the absence of automated investment options, and the platform would benefit greatly from introducing subaccounts for minors to enhance its appeal.
• Semi-active Investors – Might find DEGIRO’s Active Account particularly enticing, offering access to a broad spectrum of markets, more so for English speakers through the Irish entity. However, it’s worth noting that the platform does not offer interest on cash holdings and mandates participation in its securities lending program without profit sharing, which could be a deterrent for some.
• Advanced Investors – For seasoned investors looking to diversify their brokerage accounts, DEGIRO can be decent choice. The availability of margin loans and derivatives are notable features. However, the platform falls short in catering to more sophisticated needs, such as access to U.S. ETFs.

Check if the broker is available in your country

Competitive Fees and Margin Accounts

• DEGIRO strictly adheres to the European PRIIPs legislation, offering only ETFs with documentation translated into local DEGIRO account language.
  This means that if you’re opening a French account, ETFs without KIID in French won’t be available to you. Certain leading ETF providers like Vanguard don’t translate documentation into most EU languages.
• For example, French DEGIRO entity customers won’t have access to Vanguard ETFs.
  The workaround is for EU residents to open an Irish Account instead of their local one. Multicurrency accounts are not available. Cash interest is not remunerated, and Security
• Lending is mandatory. DEGIRO also won’t share any Security Lending revenue with its clients. DEGIRO doesn’t rely on PFOF, and has a list of commission-free ETFs.

Open an account with DEGIRO

DEGIRO is very transparent compared to other Tier 2 Brokers, but has a history of regulatory fines (although risks were recently mitigated by higher capital requirements). Based on our conversations with the broker, its status in the UK is currently unclear.

Ownership & Transparency

DEGIRO, established in the Netherlands in 2008, was acquired by Flatex, a German bank and brokerage founded in 1988, and rebranded as FlatexDEGIRO. It is listed on the Frankfurt Stock Exchange with a market cap of €1.1 bn as of January 2024. Most of its shares (74%) are floated, but the Flatex founder (Bernd Förtsch) owns 19% of the company. Transparency is high, with regular quarterly reporting and coverage from Equity Research Teams across Europe. The group banking activities can be considered non-core, as two thirds of revenues comes from commissions.

Business Profile

FlatexDEGIRO has entities across 16 markets. 60% of customers come from three countries – Germany, Austria, and the Netherlands. The remaining part comes from Western Europe. Nordics and Eastern Europe customers are marginal to the business. It caters to beginners and intermediates, as users’ average account balance is around €20k. It does not offer CFDs which we view as positive.

 

FlatexDEGIRO has entities across 16 markets. 60% of customers come from three countries – Germany, Austria, and the Netherlands. The remaining part comes from Western Europe. Nordics and Eastern Europe customers are marginal to the business. It caters to beginners and intermediates, as users’ average account balance is around €20k. It does not offer CFDs which we view as positive.

Safety Considerations

Read Our Broker Review Scoring Methodology

In 2023, the required Tier 1 Ratio is a healthy 27%, but this was due regulator highlighting financial risks associated with loans it offers to investors. The increase in required capital is a good step forward because it helps lower the company’s risk levels and boosts its main financial safety measure (called the CET1 ratio), which is much higher than the required 15.4%. Flatex is not a rated Bank, thus it is difficult to estimate its probability of default. It is also not considered a systemically important Bank.

Regulation & Investor Compensation Schemes

• EU Clients and new UK Client – DEGIRO is regulated by the German Federal Financial Supervisory Authority (BaFin) and provides investors with a protection amount of €20,000. This level of protection – while standard among most EU brokers – is considered low. Learn more about broker bankruptcy protections.
• Legacy UK Accounts – clients that signed up before 2023 are protected up to £85,000. New clients fall into EU regulations, as the UK entity is currently suspended by the FCA.

Cash Custodians

Your cash is deposited into FlatexDEGIRO Bank. As with all regulated banks, if cash is held in your name it is protected up to €100,000.

Reputation

DEGIRO faced scrutiny from the European authorities over its IT infrastructure’s security, deemed inadequate in 2021, leading to an incremental €3 million capital reserve. Since then, DEGIRO has significantly upgraded its IT systems. Additionally, FlatexDEGIRO, DEGIRO’s parent company, was fined by BaFin for breaching banking supervisory regulations and faced increased capital requirements following the merger with DEGIRO.

DEGIRO is very competitive on fees, with the exception of FX.

Platform fees

There are no annual account fees or inactivity fees.

Trading Commisions

Read Our Broker Review Scoring Methodology

The platform offers competitive fees, especially for ETFs in what it calls its Core selection. This list is subject to changes and should be verified on DEGIRO’s website. Each month, one Core ETF purchase is charged at just €1 handling fee, contrasting with the standard €3 total fee. For subsequent Core ETF purchases, discounts apply to orders exceeding €1,000. Other ETF trading fees are consistent across markets, with a €2 purchase fee plus €1 handling charge. Very fee-sensitive clients may note that since the takeover from Flatex, DEGIRO has slowly increased some of its fees, which were previously considered to be the lowest in the market. Despite these changes, they still remain very competitive.

Overall Fee Simulation vs Competitors

Read Our Broker Review Scoring Methodology

Most of our readers have simple Index portfolios. Using our Broker Total cost calculator, you can estimate the total cost of holding ETFs throughout the investment period. In the below simulation, a 20-year accumulation period broker bill is around €700 with DEGIRO. In comparison, smaller competitors – like Trading 212 or Lightyear – may appear to be more cost-effective. But, these businesses may also change their fee structure over such time horizon, and DEGIRO costs remain very reasonable. None of these peers employ Payment for Order Flow (PFOF), which may lead to additional costs for customers, through higher spreads, as explained in our PFOF guide (that’s the reason we didn’t compare against e.g. Trade Republic). 

Simulate you own scenario

DEGIRO’s platform is known for its intuitive and user-friendly interface. DEGIRO provides access to all major exchanges for ETF investors. But, local entities don’t offer ETFs with KIIDs that are only in English, Cash in not remunerated, and most importantly – your Securities may be borrowed by other market participants, and there is no opt-out. It’s also difficult to set investing on auto-pilot, and manage accounts for your children.

Account Opening Process

Opening a DEGIRO account is generally quick and straightforward. Approval usually takes less than a day, but verification may take longer for non-European passport holders. Requirements include residency in an accepted country (36 in total as per our tool above) and a SEPA bank account. The process involves a selfie and ID scan through the app, with no minimum transfer amount. Response times for email inquiries at DEGIRO can vary by entity, with a minimum wait of 2 days for general questions. Online reviews indicate that resolution times for specific issues may take longer.

Country Availability

DEGIRO distinguishes itself by allowing account openings with each entity, provided your tax residency is in an accepted country and you have a SEPA banking account. The local websites are available exclusively in the respective languages, but accounts can be opened with any entity if the local language is understood. Currently, DEGIRO operates with 16 different entities in 36 countries. Norway, Hungary and UK entities have been suspended. However, whereas UK residents can still apply for an account through a EU entity, this is not the case for Hungarians and Norwegians.

Account Features

DEGIRO offers four account types. Only the first two are relevant for Long-Term Investors:

• Basic – The default option at sign-up, providing access to stocks, ETFs, bonds, and major exchanges without leverage or margin loans.
• Active – Upgradable via an online questionnaire, adding leverage products and margin loans alongside basic account features.
• Trader Accounts – Accessible through customer service, these accounts include all previous products with leverage, typically recommended for advanced investors.

Note that there is no option to open a joint account or an account for your children (anyone below 18 is excluded).

While direct debit transfers from your bank to DEGIRO are possible, DEGIRO lacks an automatic investment plan feature, requiring manual asset purchases.

Mandatory Security Lending

DEGIRO engages in securities lending. Previously, DEGIRO offered a “Custody” account option allowing users to opt out of this practice. However, this account type is no longer available for new users, necessitating acceptance of the associated risks with securities lending when opening an account. Customers do not get any share of the security lending revenues. Instead, custody accounts opened in the past remain security lending free.

Cash Interest

There is no interest on cash for clients. DEGIRO takes 100% of the interest generated.

Internalisation And PFOF

Since mid-2021, DEGIRO began routing some orders to Tradegate, a decision that raised concerns with the Dutch regulator. Following DEGIRO’s acquisition by Flatex, regulatory oversight shifted to Germany, where such practices are even more common. DEGIRO clarified that Tradegate is primarily used for after-hours trading, with an option for users to opt out. FlatexDEGIRO also stated that Payment for Order Flow (PFOF) orders about 1% of total orders, implying minimal impact from upcoming 2026 legislation on the company.

Advanced Features

For Active and Trading accounts, you may use margin loans that have relatively competitive fees: 6.9% or 5.5% as of February 2024. Also, these accounts provide access to Options and Future Markets, however there is no possibility to trade US ETFs. To learn more open the geeky section below.

Investment Type

Methodology

Methodology

Broker Selection Guide

How BoW Makes Money

Report a Mistake