DeGiro secretly charged customers for transactions at foreign exchanges. There’s a line in the fee schedule nobody ever heard about. It says “Setting up trade possibilities” (pdf). This means doing transactions at an exchange abroad comes at a small extra cost. Once you do a transaction at a foreign exchange, you will be charged a fixedRead more
There is a difference between smelling a rat, and catching one. A few weeks ago I noticed the hedgefund HiQ was in the kitchen of online broker DeGiro. Terrible situation, don’t set the fox to watch the geese. Worried about extra risks, in case of a collapse of HiQ. Everything at an abstract level. TodayRead more
DeGiro’s response to the previous post on matching client flow to their own hedgefund was a 3 page long pdf. While ignoring the big elephant in the room, they had some valid points too. And some nonsense. Counterparty risk Valid points first. When your broker collapses, your position in derivatives isn’t secured nor guaranteed. Whether the transactionsRead more
This is shocking news. The discount broker DeGiro has been executing client option orders against their own hedge fund, HiQ. These option trades have been matched inhouse, which means the retail clients effectively have traded over-the-counter options against DeGiro. And these “OTC” options means you run counterparty risk, the options are only guaranteed by DeGiroRead more
By order of the court, TOM and Binck are explicitly having a disclaimer on their website. It has been proven the execution for option orders isn’t always the best at TOM. This situation was a clear case with orders in stocks. DeGiro created clear examples where stock trading at Euronext could give better executions. IRead more
