DeGiro Question

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FCBC12

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In a scenario that DeGiro had to declare bankruptcy tomorrow morning, what would happen to customers (basic account) investments?

Is there a risk in using their service, or are there safeguards in place to fully protect the customer (ie. me)?
 
If DeGiro go bankrupt, the loss of your investments held by them will be the least of your, and our, worries

About the only scenario where they would go bankrupt would be a massive melt-down of the whole European financial sector
 
One might have said the same about Anglo Irish back in the mid noughties... :)

Having said that, there's absolutely no reason to believe that any genuine risk of bankruptcy exists. And even if it did, client funds and holdings are ring fenced.
 
Right Winger said:
client funds and holdings are ring fenced.
Click to expand...

Hi Right Winger

I am guessing that this is the question the OP had in mind.

In what way are they ring-fenced?

It would probably be a bit like the Cork broker where the liquidator got access to the shares to pay his fees.

Brendan
 
I thought the assets in the nominee accounts were held in a completely separate entity independent of degiro .
There was a big discussion on this very topic here a few years ago
 
Brendan Burgess said:
I had forgotten about this thread

How safe are shares held in Stockbrokers' nominee accounts?

Those of us who liked holding share certificates and a Crest Personal Account through Campbell O'Connor are now reviewing our options. I don't like the idea of nominee accounts as the Liquidator of Murroughs was able to dip into the clients' shares to pay his fees. Degiro is the cheapest but...
www.askaboutmoney.com
Click to expand...
Having read the thread, there's no real consensus among contributors, is there? And, if you think about it and drill down, is there a further risk with ETFs at fund manager level? Suppose you buy an ETF issued by a fund manager (say Vanguard) through a broker (say DeGiro) then that's another potential point of failure. Should the fund manager go bust, how secure are the funds, and does a liquidator have a call? I suppose the same issue arises with pension providers too...
You could drive yourself mad thinking too much about it :rolleyes:
 
My concern with DEGIRO is securities lending. You used to be able to avoid that risk by paying extra for a Custody account, but now you can only open accounts with securities lending. I'm sure the risk is small, but I would prefer to pay a bit extra to not have this as an additional worry in the case of a major crash. I also don't like that they don't seem to be very open that they do it.
 
I looked at using DeGiro, but I regard it as too risky.
I dont believe your holdings would be ring-fenced.
They are not a key part of the financial system in Europe, so not likely to be saved by a regulator.
If the ETF fund manager goes under.. say Vanguard or Blackrock, you better stock up on tinned food.
 
Right Winger said:
Having read the thread, there's no real consensus among contributors, is there? And, if you think about it and drill down, is there a further risk with ETFs at fund manager level? Suppose you buy an ETF issued by a fund manager (say Vanguard) through a broker (say DeGiro) then that's another potential point of failure. Should the fund manager go bust, how secure are the funds, and does a liquidator have a call? I suppose the same issue arises with pension providers too...
You could drive yourself mad thinking too much about it :rolleyes:
Click to expand...
Insurance companies have to pay insane amounts of money into their capitalisation accounts to ensure that they are able to meet all liabilities in such scenarios. All their capitalisation levels are available on their websites. While you may pay more to invest through a company like a life company or somewhere like Davy or Goodbody, part of those fees covering solvency requirements. If you would prefer low/no fees, you get less security and also accept that they are using your money/ data to generate other incomes too.
 
A friend is considering buying say 50k of Govt bonds on DeGiro.

He has expressed some concerns/worries, maybe unfounded, about the safety compared to holding the same bonds with Davy or Goodbody in Ireland.

What are the opinions on this point? The discussion above didn't seem to arrive at a concensus.
 
I have a custody account so surely I 'own' the shares I have no matter what happens Degiro..Obvs any cash in there over 20 K is at risk
 
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