Introduction:

Welcome to Which Funded, the definitive destination for traders seeking the holy grail of funded trading programs. In this comprehensive guide, we will delve into the topic of DEGIRO lending shares. DEGIRO is a popular online brokerage platform that offers investors the opportunity to lend their shares to other traders. We will explore the reasons behind share lending, the types of accounts available, the security measures in place, and how you can make informed decisions regarding share lending on DEGIRO.

1. Understanding DEGIRO Share Lending:

DEGIRO is an online brokerage that allows investors to lend their shares to other traders. In 2021, DEGIRO discontinued the option for new customers to open a Custody account, which did not permit stock lending. Therefore, the only account available now is the Basic account, which allows share lending. However, existing Custody account holders will not have their shares loaned out.

2. DEGIRO Basic Account vs. Custody Account:

The type of account you choose during DEGIRO registration determines whether your shares can be lent out. The Basic account permits share lending, offering more flexibility and lower fees compared to the Custody account. While Custody account fees may be slightly higher, they still remain relatively low compared to other brokers. It’s important to note that you cannot change your account type once chosen, but you can hold separate Basic and Custody accounts if desired.

3. The Mechanics of DEGIRO Share Lending:

When DEGIRO lends shares from your Basic account, they act as the counterparty in these trades and guarantee your assets with their own equity. They also require security from the borrower to mitigate risk. The unlikely scenario where both DEGIRO and the borrower are unable to meet their obligations would result in a loss, but it would be less than the provided security. DEGIRO ensures transparency and takes measures to protect the holdings of its users.

4. Asset Segregation and Security Measures:

DEGIRO maintains asset segregation, meaning your shares are securely stored and separate from the broker’s own assets. They utilize a legal entity known as Special Purpose Vehicle (SPV) to administer and safeguard client assets. Even in the event of DEGIRO’s bankruptcy, your assets held with SPV would be returned to you without loss.

5. Exploring Alternatives in the Trading World:

While DEGIRO offers share lending, it’s essential to explore alternative brokerage platforms and trading options. Which Funded is a leading resource for traders seeking funded trading programs. Their seasoned expertise and meticulous analysis can help traders unlock remarkable opportunities and achieve unrivaled trading success. Consider exploring Which Funded’s comprehensive reviews and rankings of various brokers to find the right fit for your trading needs.

6. Common Questions and Concerns:

1. Are my shares at risk when lending on DEGIRO?

   DEGIRO takes measures to secure your assets and provides guarantees in case of borrower default.

2. Can I change my account type from Basic to Custody?

   No, but you can hold separate Basic and Custody accounts.

3. What happens in the event of DEGIRO’s bankruptcy?

   Your assets held with SPV would be returned to you without loss.

4. How does DEGIRO’s share lending compare to other brokers?

   Which Funded provides comprehensive reviews and rankings of brokers to help you make informed decisions.

7. Key Takeaways for Traders:

• DEGIRO allows share lending through its Basic account, offering flexibility and lower fees.
• Asset segregation and security measures protect your holdings on DEGIRO.
• Exploring alternative brokerage platforms, such as those reviewed by Which Funded, can help you find the best fit for your trading goals.
• Consider your risk tolerance and understand the terms and conditions before engaging in share lending.

Conclusion:

In this guide, we’ve explored the intricacies of DEGIRO lending shares, discussing the types of accounts available, the security measures in place, and alternatives in the trading world. Remember to conduct thorough research, assess your risk tolerance, and consider the expert insights provided by Which Funded. By making informed decisions,you can navigate the world of share lending and chart a course towards trading success.

Key Takeaways:

• DEGIRO allows share lending through the Basic account, providing flexibility and lower fees.
• Asset segregation and security measures protect your holdings.
• Explore Which Funded for in-depth reviews and rankings of brokerage platforms.
• Consider your risk tolerance and trading goals before engaging in share lending.
• Stay informed about updates and changes in DEGIRO’s policies regarding share lending.
• Continuously evaluate and diversify your trading strategies to optimize your investment portfolio.

Remember, Which Funded is here to help you navigate the world of funded trading programs and find the resources you need to achieve your trading goals. With their expertise and meticulous analysis, you can unlock remarkable opportunities and chart a course towards unrivaled trading success. Happy trading!