How to Minimize Cost on DEGIRO?

DEGIRO Home Market Selection

According to the information I've gathered from DEGIRO, the country you select when starting your account determines your default language and your ‘home market’ exchange. On the home market, you do not incur any connectivity fees.

So, which DEGIRO branch should you open your account with? We recommend choosing the country that has the exchange you want to use as your home market. This strategic selection will help you minimize unnecessary fees.

After creation you can always change your language to english. If you cannot speak english then you should choose the language you are most comfortable with. These cost optimizations will not make or break your investments

Example: Vanguard ESG Global All Cap ETF

For instance, if you want to buy the Vanguard ESG Global All Cap ETF USD Acc (ISIN: IE00BNG8L278), you need to be mindful of the exchange on which you purchase it. This ETF is listed on five different exchanges: Amsterdam, Milano, Tradegate, and XETRA. However, it is only part of the ETF Core Selection on the Euronext Amsterdam Exchange (EAM).

Imagine buying it on the five different exchanges on separate occasions, none of which are part of your home market. You would end up paying 5 x 2.5 euros, totaling 12.5 euros in fees per year—fees that could be avoided by choosing the correct home market and keeping track of the exchange on which you buy your ETF.

While this may seem like a small fee, as your capital grows, the impact becomes relatively smaller. Nonetheless, it's a fee that can be easily avoided, especially in the early stages of investing.

Fair Use Policy

DEGIRO’s Fair Use Policy allows for one trade per month, regardless of size, on their ETF Core Selection. You can make additional trades in the same month if they are in the same exact product that you previously bought or sold. However, you cannot change the direction of the trade. If you bought shares, you can continue to buy more; if you sold, you can continue to sell. The order value must be larger than 1000 EUR, GBP, or USD.

Buying Strategy for Passive Investors

For those following Wealthy Forever's passive investing strategy, this policy aligns well with a buy-and-hold approach. Essentially, you can think of it as being allowed to make one purchase per month. If you wish to make more purchases, they must each be above 1000 euros. This approach keeps transaction costs low while maintaining a disciplined investment strategy.