It can be very difficult for individual traders in Europe to find quality online brokers because most are situated offshore or cater to professional traders and institutions. That being said, Degiro and LYNX are two of the most popular brokers now available to European traders. That is why it is important to look at these two companies closely and discover which among them would be the better choice for you.
Degiro was launched in 2013 in the Netherlands, but since then the company has grown greatly to cover 18 other countries in Europe. LYNX has been around a bit longer, since it first came about in 2006, but it has only reached 6 other European countries. Despite these differences, it is more important to look at other aspects before making a final decision.
Platform ease of use
Both Degiro and LYNX have developed proprietary trading platforms to access the financial markets. As you would expect, both trading platforms are quite different, although both brokers have managed to make their platforms very easy to use. The choice between the two really comes down to personal choice, but the LYNX Trading Platform is a bit better. It is that much better that Barrons Magazine has labelled the platform as the best investment software for a decade between 2005 and 2015.
Winner is LYNX for having the preferred trading platform over Degiro’s.
What you’re charged should be a crucial consideration as it can eat away your profits if not taken into account. Degiro and LYNX are known for their low trading fees but LYNX here has the upper hand. For instance, buying 100 shares of Apple will cost you over $6 at Degiro while the same purchase will cost $5 at LYNX.
Winner is LYNX for having lower costs.
It is important for all traders to divest and spread their investment over various markets, so it’s always better to choose a broker with access to more markets. Degiro offers traders access to Forex, stock, ETF, futures and options while LYNX has these as well as bonds, CFDs and structured products in certain locations.
This makes LYNX a winner in this category.
- Bank transfer in GBP only
- Bank transfer in GBP, USD and EUR
Winner is LYNX again because traders can deposit in various currencies. Should you deposit, say, USD, on Degiro, you will be charged additional conversion fees. For those using GBP as their primary currency, though, Degiro will be more friendly because there are absolutely no charges on deposits or withdrawals. Meanwhile, LYNX will only offer you one free withdrawal per month, after which you’re going to be charged.
Degiro is clearly the bigger of the two brokers with over 400,000 traders signed up while LYNX had just 30,000 clients by 2015. This is probably because of Degiro’s wider reach in Europe, but it doesn’t necessarily mean that its services are better. Therefore, in terms of unique features, these two brokers are tied.