DeGiro ‘sees’ the bet and reduces commissions in Spain to zero

The brokerage war continues and this time it has been DeGiro who wanted to see the bet of his rivals and also reduce the commissions to zero. The Dutch firm, which was already among the cheapest in Spain, will bring to zero the cost of share purchase/sale operations on the main European stock markets -EuroNext Paris, Lisbon, the Nasdaq in Stockholm, Denmark, the Stock Exchange Madrid and the Italian Stock Exchange-, in addition to the US market and ETFs. The sale will begin next Monday, November 22.

The broker is confident that “the attractiveness and quality of its offer will lead to an increase in income (…) that will improve profitability,” it pointed out in a note yesterday. Yes, the currency conversion will continue to cost, although the firm assures that it is “one of the lowest in the industry”, since it applies 0.25% on the nominal value of the operation.

Until now DeGiro occupied one of the first positions in Spain. For an operation to purchase Spanish shares for an amount of 10,000 euros, the firm applied a commission of 7 euros resulting from a minimum of 2 euros plus 0.05% of the nominal value (with a maximum of 10 euros).

On Wall Street DeGiro was already one of the cheapest brokers, even practically at zero level: $10,000 in an American firm would have cost 0.9 euros. , Ninety Nine and Bux Zero -new in Spain- already allow trading on the American stock market without commissions for buying/selling securities. DeGiro’s announcement comes a week after his compatriot promised to operate free of charge. The truth is that this is the case, for Spanish shares as well, but it conditions that the purchase of shares is free to the fact that the order is executed once a day, which allows the broker to group them all and execute them. If the investor wants to launch a market or limit order (by price) the commission is 1 euro.

Flatex DeGiro, the broker’s parent company, will quadruple its pre-pandemic revenue at the end of this year, up to 428 million euros, according to forecasts, compared to 132 at the end of 2019.