If you’re looking to invest online – whether that’s in the form of stocks, ETFs, or other asset classes – you need to ensure that you are getting a good deal for your money. In other words, you’ll want to pick an online broker that offers competitive fees and commissions.

One of the most notable low-cost brokers active in the space at present is that of DEGIRO. Put simply, this broker allows you to buy US shares at a cost of just €0.50 + $0.004 and ETFs on a fee-free basis. But, are these low trading fees what they seem, or are they simply too good to be true?

That’s exactly what my in-depth Degrio Review intends on finding out. Not only will I explore the broker’s fee structure from top to bottom, but I’ll also cover other important metrics. This includes everything from tradable markets, supported payment methods, user-friendliness, eligibility, customer service, and of course – regulation.

What is DEGIRO?

DEGIRO is an online stock broker that is based in the Netherlands. With that said, the platform is now home to over 600,000 investors in 18 countries. This includes much of Mainland Europe and the UK. By opening an account with DEGIRO, you will have access to a highly extensive list of assets.

As we uncover in more detail later, this includes everything from shares, ETFs, bonds, futures, and leverage products.  All in all, this online broker covers over 50 marketplaces across 30 counties. As such, if there’s a specific financial instrument that you’re interested in, there is every chance that you will find it at DEGIRO.

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If you’re simply looking to buy shares or invest in an index fund – CFDs won’t be for you. But, if you’re looking to deploy more advanced trading strategies – such as applying leverage or short-selling, then CFDs might be the solution.

Put simply, CFDs are tasked with tracking the value of an asset like-for-like. This means you won’t own the CFD instrument, but you can still profit from ever-changing price movements.

In this guide, I am going to discuss everything there is to know about CFDs. I’ll cover how CFDs work, what you can trade, how leverage and short-selling can be accessed, and what sort of cost-savings this financial instrument offers. I’ll also talk about my favorite CFD trading platform: eToro.

What are CFDs?

CFDs are contracts-for-differences. They are financial instruments created by online brokers and trading platforms. The primary goal of a CFD is to track the real-world price of an asset. For example, if Tesla stocks move from $400 to $400.50, the CFD instrument will mirror this.

Similarly, if the market price of Gold goes down by 2.2%, as will the CFD. The most important thing to understand about this complex financial instrument is that by trading it, you won’t own the underlying asset. For example, if you place a $500 buy order on Bitcoin CFDs, you won’t own $500 worth of Bitcoin.

On the contrary, this is the amount that you are staking on the position. In turn, if Bitcoin increased by 10% in value, your $500 stake would now be worth $550. Although at first glance you might be put off by the fact that you won’t own the asset you are trading, CFDs come with several perks.

As I explain in more detail shortly, this includes:

• Low or even zero commissions on most CFD trading sites
• Ability to apply leverage – meaning you can trade with more than you have in your account
• CFDs allow you to short-sell assets, so you can profit from falling markets
• Spreads are usually very tight when trading CFDs – further reducing your costs
• Allow you to access difficult-to-reach markets, such as crude oil, natural gas, or stocks listed in the emerging markets

All in all, CFDs offer traders an alternative to traditional asset classes like stocks, mutual funds, or ETFs.

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