Financial institution Degiro assumes control from ING
Degiro and Trade Republic Shake Up European Brokerage Market
In the competitive world of online brokerage, two new players are making waves. Degiro, a foreign broker with a strong presence in 18 countries, including Germany, and the recently launched Trade Republic, are causing a stir with their unique approaches.
Degiro, which has been operating in Germany as its most important market, has been focusing on stock exchange trading, setting itself apart from the more popular off-exchange trading common in the country. However, in 2019, some clients found limitations in Degiro's offerings, particularly in trading U.S. funds and managing new regulations, leading some to switch to brokers like Interactive Brokers [1].
Despite these challenges, Degiro is not resting on its laurels. The broker is keeping a close eye on market entries, suggesting it is aware of competitors like Trade Republic. Trade Republic, a newcomer, aims to undercut Degiro in price by waiving its own order commissions and charging a flat rate of one euro per trading transaction.
In response, Degiro is not only focusing on price but also improving its performance offering. Jirsa, a Degiro spokesperson, has mentioned plans to expand its information offerings and launch a new knowledge center. Degiro customers can currently invest in 200 ETFs once a month, but not automatically. However, Degiro plans to offer more order types, make all capital measures manageable online, improve the product search, and launch a new version of its trading software in 2019.
Meanwhile, Degiro's competitor, ING, continues to dominate the market. ING, a direct bank, has won 14 times in the 20-year history of a reader's choice. In 2019, ING aims to continue strong growth, with plans for the introduction of advice in digital form.
As for Degiro's fees, they increased due to regulatory requirements (MiFID II) in 2018, leading to a dip in its top score in the "Costs and Interest" category. However, Degiro aims to lower its fees back to the initial level within 18 months.
While specific plans for expanding product offerings and improving services in 2019 are not explicitly detailed for Degiro, it is clear that the broker is not content to rest on its laurels. The arrival of Trade Republic and the challenges faced in 2019 have undoubtedly spurred Degiro on to improve and innovate.
[1] Source: Unspecified search results from 2019. Consulting Degiro's official communications or press releases from that year would be necessary for verified details on DEGIRO’s 2019 plans.
Comdirect and E-Ident
In a separate development, Comdirect, another German online broker, is planning to further drive the topic of E-Ident in 2019. E-Ident is an electronic identification process that allows customers to identify themselves electronically when opening a bank account or trading online. Comdirect's focus on E-Ident reflects a growing trend towards digital identification processes in the financial industry.
ING's Price Reduction in 2018
In May 2018, ING, a direct bank, lowered prices for small-volume orders, a move that likely influenced the competitive landscape in the online brokerage market. However, the full impact of this price reduction on Degiro and other competitors is not explicitly detailed in the available information.
Notes
- Degiro does not offer over-the-counter trading or savings plans.
- Degiro does not withhold withholding tax for German customers.
- Degiro operates in 18 countries, with Germany being its most important market.
- Degiro is a fan of stock exchange trading and prefers it over off-exchange trading.
- Trade Republic does not charge order commissions and has a flat rate of one euro per trading transaction.
- The information about Degiro's plans for 2019 is based on available search results and may not be exhaustive or completely accurate. For verified details, consulting Degiro's official communications or press releases from 2019 would be necessary.
Read also:
- A Business Model Explained: Its Purpose and Benefits for Your Venture
- Deep-rooted reinforcement of Walkerhughes' acquisitions through strategic appointment of Alison Heitzman
- Unchecked Management of HP Dams Leads to Environmental Disaster: RTI Reveals
- Impact of Trump's Enforced Russia Sanctions Could Compel Putin's Decision-Making
