Margin Loans

Are you looking to leverage your investments? At DEGIRO, we offer Margin Loans at competitive interest rates which allows you to finance your investments, with your portfolio as collateral.

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Investing with Margin Loans

A Margin Loan allows you to borrow against the securities you already hold in your DEGIRO account. You can activate a Margin Loan in your account after reviewing the precontractual information, passing the knowledge test and accepting the terms and conditions to show you understand the product and the risks involved. Once approved, you can use the borrowed money from the Margin Loan to buy securities. The amount you can borrow depends on the types and value of securities in your portfolio. Keep in mind that the more you borrow, the more risk you take on.

4%

per annum

3%

per annum with allocation

Competitive Margin Loan rates

Allocating funds beforehand allows you to borrow at a reduced rate of 3% per annum instead of 4% per annum. Please note that interest is charged monthly on the full amount allocated, whether the full amount is used or not. We offer this service for multiple currencies, which can be found in the Fee Schedule under ‘Debit rates’.

See this example for more information on how our interest rate works.

Interest rates of a Margin Loan

The interest rate of 4% is fixed on an annual basis. Since interest is charged monthly, this results in the following monthly interest payments

Total amount of the loan Annual interest rate Monthly interest rate Interest per month Interest per year
€10,000 4% 0.33% €33.33 €400
€25,000 4% 0.33% €83.33 €1,000
€50,000 4% 0.33% €166.67 €2,000
€100,000 4% 0.33% €333.33 €4,000

In case you don’t directly pay the monthly interest, but instead have it added to your loan, then this would result in the following effective interest rates

Total amount of the loan Effective annual interest rate Interest per month Interest per year Total amount of loan after one year
€10,000 4.13% €33.33 €413 €10,413
€25,000 4.13% €83.33 €1,032 €26,032
€50,000 4.13% €166.67 €2,066 €52,066
€100,000 4.13% €333.33 €4,132 €104,132
The monthly costs in this example are based on an interest rate of 0.33% per month.
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What is a Margin Loan?

A Margin Loan allows you to invest more than the money you’ve deposited into your account. It’s a loan that can only be used for investing. The amount you can borrow depends on the value and types of securities you already hold in your portfolio, which will serve as collateral. DEGIRO’s Margin Loan services take place under the conditions specified in the Debit Money (Margin Loan) Conditions.

How do Margin Loans work?

With a Margin Loan, you borrow money to invest. This will increase your risk but can also increase your possible returns. To better understand how Margin Loans work, let’s look at a hypothetical example showing both gain and loss scenarios, with and without margin.

In this example, you buy 100 shares of Company X at $10 and an additional 100 shares on margin. The portfolio is now worth $2000.

If you buy at $10 and the price increases to $12, your profit is amplified with a Margin Loan.

If you buy at $10 and the price decreases to $8, your loss is amplified with a Margin Loan.

+$200
+$400

Profit without
Margin Loan

Profit with
Margin Loan

Loss without
Margin Loan

Loss with
Margin Loan

If you buy at $10 and the price increases to $12, your profit is amplified with a Margin Loan.

If you buy at $10 and the price decreases to $8, your loss is amplified with a Margin Loan.

How much money can I borrow?

The amount you can borrow with a Margin Loan depends on the value and composition of your portfolio. Active accounts can receive a Margin Loan up to 33% of the portfolio value. Basic accounts are prohibited from access to derivatives and other product categories that involve more risk and can therefore receive a Margin Loan up to 70% of the portfolio value. Trader accounts can also receive a Margin Loan up to 70% of their portfolio value.

The general margin calculation is:

Margin = value of portfolio + cash balance – portfolio risk

With a Trader account, a less conservative risk approach is taken. Your portfolio risk will be lower, and the amount of margin available will be higher. Check out our Investment Portfolio Risk Handbook to find more about our risk calculation.

70% margin

on Basic account

Derivatives

are NOT available

33% margin

on Active account

Derivatives

are available

70% margin

on Trader account

Derivatives

are available

1

Go to ‘Settings’ in your account and select ‘Allocation’.

2

Click ‘Add allocation’.

3

A window will appear where you can select the currency and the amount you wish to borrow. Fill in the boxes accordingly.

4

Click ‘Confirm’.

How can I allocate funds beforehand?

As mentioned, you can allocate funds to receive a reduced interest rate. This is because it gives us the chance to budget these funds accordingly. You can allocate funds under the ‘Settings’ tab in your account and select ‘Allocation’.

Risk of investing with a Margin Loan

Using Margin Loans leverages your investment, so profits and losses are amplified. Therefore, this service is generally not recommended for less experienced investors and those with a low risk tolerance.

Please make sure to always read our risk document.

If the collateral in your portfolio isn’t sufficient to cover the debit balance, you may receive a margin call. This means that our Risk Department will ask you to increase the collateral or decrease the debit balance. If you don’t resolve the limit breach before the given deadline, our Risk Department will close some of the positions to rectify it. If we need to intervene, additional fees can be charged. See our Fee Schedule for more information.

Diversificatie
Verschillende ordertypes

Strategies for managing margin calls

Carefully choosing the quality of your investments you borrow against and the amount you borrow can help reduce the likelihood of a margin call. Here are some risk management strategies to consider:

  • Borrowing against a portfolio of less-volatile securities.
  • Borrowing less than the maximum amount you can borrow against your securities.
  • Diversifying your portfolio by purchasing securities that balance your holdings and potentially offset losses on existing securities.
  • Monitoring your portfolio carefully, especially during fluctuating, volatile market conditions, to anticipate a potential decline in value.

Sijoittajan taipaleesi alkaa tästä

Avaa ilmainen tili ja liity yli 2 miljoonan sijoittajan joukkoon helppokäyttöiselle ohjelmistoalustallamme.

Aloitetaanpa

Huomaa: Sijoittamiseen liittyy riskejä. Voit menettää talletuksesi osittain tai kokonaan. Suosittelemme että sijoitat vain rahoitusvälineisiin, jotka tietosi ja kokemuksesi perusteella ovat sinulle sopivia.

Haluamme kaikkien kehittyvän niin hyviksi sijoittajiksi kuin mahdollista. Poistamme sijoittamisen saavutettavuuden esteitä kaikilta aloittelijoista asiantuntijoihin tarjoamalla laajan valikoiman mahdollisuuksia ja valintoja helppokäyttöisellä ohjelmistoalustallamme. Saatavana on paljon erilaisia tuotteita yli 50 pörssistä ympäri maailman ja mahdollisuus sijoittaa juuri itse haluamallasi tavalla. Meidän maailmassamme saat rahoillesi paljon vastinetta. Tarjoamme uskomattoman alhaiset palvelumaksut kuitenkaan tinkimättä pätkääkään sijoituspalvelujemme laadusta, turvallisuudesta tai monipuolisuudesta. Tarpeittesi asettaminen etusijalle on auttanut meitä kehittymään Euroopan johtavaksi verkkomeklariksi. Osoituksena menestyksestämme on 2+ miljoonaa asiakasta ja 80+ kansainvälistä palkintoa.

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Ehdot ja säännöt €100 transaktiokulu tarjoukseen

Jos aktivoit DEGIRO sijoitus tilisi ennen 1. tammikuuta 2023, DEGIRO kattaa transkatio kulusi €100 asti. Seuraavat ehdot ovat voimassa:

  • Tarjous on voimassa 31. joulukuuta 2022 asti.
  • Tarjouksen voimassaolon aikana, uudet asiakkaat jotka aktivoivat tilin saavat €100 transaktiokuluista katettua.
  • Ensimmäiset transaktiokulut ja ulkoiset käsittely kulut €100 saakka aikaikkunalla, joka sulkeutuu 31. tammikuuta 2023 katetaan
  • Me katamme transaktiokulut ja ulkoiset käsittelykulut jotka olet käyttänyt (max. €100) DEGIRO tilillesi helmikuun alussa
  • Tämä tarjous on voimassa vain asiakkaille joilla on uusi suomalainen DEGIRO tili.
  • Saadakseen tarjouksen, asiakkaan on tehtävä ensitalletus vahvistaakseen tilinsä (minimitalletus €0.01) ja aktivoitava tilinsä.
  • Uudet asiakkaat jotka aloittivat rekisteröintinsä ennen tarjouksen alkamista, mutta aktivoivat DEGIRO tilinsä tarjouksen aikana, ovat myös oikeutettuja tarjoukseen.
  • Jos olemassa oleva tili on jo liitetty uuden asiakkaan osoitteeseen, osallistuminen evätään.
  • Jokainen uusi asiakas voi saada €100 transaktio krediittejä vain kerralla.

Tarjouksen hyväksyminen

Osallistumalla tarjoukseen asiakas automaattisesti hyväksyy säännöt ja ehdot. DEGIRO voi lopettaa tai muuttaa kampanjan ehtoja sen voimassaoloaikana. DEGIRO kommunikoi muutoksista nettisivujensa kautta.

Osallistuminen

Osallistuminen tarjoukseen on avoinna kaikille asiakkaille jotka aktivoivat tilinsä ennen tai 31. joulukuuta 2022.

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