DEGIRO debit money

D

dave2015

Registered User
Messages
58
Hi, have a short term cash flow issue and looking at options. Have some investments in degiro and they will allow me withdraw up to 9k at present. Would more than cover temporary need and cheaper than credit card or overdraft at 4.5%(5.25 from January). Any catch to this I should be aware of? Appreciate may get warnings of short term borrowings, time of year etc but genuinely ok on that front, just need to buy a little time. Could of course sell down shares but if no catches to above then I’ll probably elect to keep the positions open for now.
Thanks
 
The catch is you may be subject to a margin call.

The amount they allow you to withdraw is a % of your portfolio value.

Say you withdraw the full 9k. If your portfolio then drops in value the amount of debit money you're allowed could drop from 9k to 8k. You now have to repay 1k in a very short time-frame. Otherwise they will sell your positions to cover the amount owed.

So you may be selling your shares at a lower price than you intended and lose money.
 
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