comparison

Interactive Brokers vs DEGIRO 2026: Which Is Right for European Investors?

An honest head-to-head of Interactive Brokers vs DEGIRO — both BaFin/CBI-regulated, both genuinely cheap by retail-broker standards, but with very different strengths. Which is right for your specific portfolio in 2026.

MSMarco Schwartz··7 min read

Interactive Brokers and DEGIRO are the two most-cited "cheap" European brokers for cost-conscious investors. Both are well-regulated, both have multi-million-customer scale, both have continuous operational track records of decades. They have very different strengths — and the right answer depends entirely on what your portfolio actually looks like.

The headline trade-offs

DEGIRO is the cheapest broker for European-listed ETF buy-and-hold via the free Core Selection list. Native EUR balances mean no per-deposit FX cost. Best-in-class for cost-conscious EUR-only investors.

Interactive Brokers has the lowest FX costs in the entire broker industry (0.2 basis points vs DEGIRO's 25). Best-in-class for any portfolio with US-stock or multi-currency exposure. The trade-off is the intimidating UI and the inactivity fee structure for low-balance accounts.

For most European retail investors, the right answer depends on portfolio composition: 100% EUR ETFs → DEGIRO; mixed currency or significant US exposure → IBKR; both → use both.

Cost-per-trade and FX

| Factor | Interactive Brokers (Pro) | DEGIRO | |---|---|---| | EUR ETF trade | €1.25 minimum, scales modestly | €0 on Core Selection (€1,000 min) or €2-3 off-list | | US stock trade | $1 minimum (for trades up to 200 shares) | ~$1 commission | | FX (EUR→USD or vice versa) | 0.2 basis points spread | ~25 basis points spread | | Withdrawal fee | First SEPA free per month, then $1 | Free | | Inactivity fee | $10/month if balance under $100K and commissions under $10 | None | | Account opening | Free, $0 minimum | Free, €0.01 minimum |

The FX advantage compounds dramatically over multi-year horizons.

Worked example: a European investor buying $50,000 of US stocks over 5 years. On IBKR Pro, total FX cost is ~$10-20. On DEGIRO, total FX cost is ~$1,250. The $1,200+ difference is real money over a 5-year period.

For pure EUR ETF buy-and-hold (no FX needed), DEGIRO wins. The Core Selection's free trades are genuinely free, and IBKR's €1.25 commission is a small but real disadvantage on small ETF trades.

Product range and exchange access

Interactive Brokers offers access to 150+ markets in 33+ countries, including all major US exchanges, every major European exchange, Hong Kong, Tokyo, Singapore, Australia, and many more. Plus options, futures, bonds (corporate, government, municipal), mutual funds (3,500+), forex, and CFDs in some jurisdictions. The broadest product range in the retail broker space.

DEGIRO offers 32 exchanges including all major European, US, and Asian markets. Stock and ETF universe is comprehensive but doesn't include the institutional-grade options/futures/bond infrastructure that IBKR has.

For most European retail investors doing buy-and-hold ETF investing, DEGIRO's exchange range is sufficient. For investors who want options, futures, individual bonds, or unusual market access, IBKR is the only sensible choice.

User interface and learning curve

DEGIRO's UI is functional and dated but accessible to retail users. Web platform and mobile app both work; neither is beautiful but both do what's needed. Onboarding takes 10-15 minutes.

Interactive Brokers's flagship desktop product (Trader Workstation) was built for institutional traders and looks like a Bloomberg terminal. The web platform (IBKR Client Portal) and mobile app (IBKR Mobile) are dramatically better for retail users — modern, clean, functional. But the Trader Workstation reputation scares off retail investors who'd actually benefit from using IBKR.

For most retail investors, the IBKR Client Portal web platform is fine and competitive with DEGIRO's UI. The Trader Workstation is overkill but you don't need to use it.

Inactivity fees and minimum balances

This is where IBKR has a real disadvantage for low-balance European accounts.

IBKR's inactivity fee structure: $10/month if your account balance is under $100K and your monthly commissions are under $10. Eliminated for US clients in 2021 but the EU rule still applies. A small monthly trade ($100-500 in commissions × multiple trades) avoids the fee, but it catches occasional traders.

DEGIRO has no inactivity fee at any balance. Account stays active indefinitely without trading.

Practical implication for European investors: if you have under €15K-€20K on IBKR and you're not trading regularly enough to generate $10/month in commissions, DEGIRO is straight-up cheaper because of the inactivity-fee penalty alone. For balances above ~$50K with regular trading, the inactivity fee isn't a real concern.

Where each broker wins

DEGIRO wins for:

  • Pure EUR European-listed ETF buy-and-hold (free Core Selection trades)
  • Low-balance accounts under €15K-€20K (avoids IBKR inactivity fee)
  • Cost-conscious investors making infrequent trades
  • Investors who don't want to think about exchange access or product complexity

Interactive Brokers wins for:

  • Multi-currency portfolios (FX advantage compounds dramatically)
  • US-stock-focused investors (lowest cost, best execution)
  • Investors who want broad product range (options, futures, bonds, mutual funds)
  • High-balance investors (€100K+) where the inactivity fee isn't relevant
  • Investors with serious long-horizon investing intent

How I split between them

My personal European broker stack uses both, with split shifting by portfolio segment:

  • DEGIRO for European-listed UCITS ETFs (Core Selection makes this genuinely free)
  • Interactive Brokers for US-stock individual positions and any USD-denominated assets (FX advantage is decisive)

The duplication isn't wasteful — DEGIRO's free Core Selection saves €40-€80/year vs IBKR's €1.25-per-trade commission, and IBKR's FX advantage saves $200+/year on the multi-currency portion. Both savings compound over years.

For investors forced to pick one:

  • 100% European-ETF buy-and-hold strategy → DEGIRO
  • Any meaningful US or multi-currency exposure → IBKR
  • Mixed strategy with €50K+ portfolio → both, no contest

FAQ

Should I use Interactive Brokers or DEGIRO?+
Depends on portfolio composition. For 100% European-listed UCITS ETF buy-and-hold, DEGIRO is cheaper because of the free Core Selection list. For any portfolio with US-stock or multi-currency exposure, IBKR is cheaper because of the 125× lower FX cost (0.2 bps vs 25 bps). Many European investors with mixed portfolios use both: DEGIRO for the EUR ETF backbone, IBKR for US-stock and multi-currency exposure.
Is Interactive Brokers cheaper than DEGIRO?+
Cheaper for some uses, more expensive for others. IBKR has dramatically lower FX costs (0.2 vs 25 basis points) and slightly cheaper US stock trades. DEGIRO has free EUR ETF trades on the Core Selection list (€1,000 minimum, 1/month per ETF) and no inactivity fee. For pure EUR ETF investors, DEGIRO is cheaper; for multi-currency or US-stock investors, IBKR is cheaper.
Why is IBKR's FX so much cheaper than DEGIRO's?+
Because IBKR is a market-maker in foreign exchange, executing FX trades on the IDEALPRO interbank platform alongside the major banks. The spread you pay is essentially the bid-ask in the wholesale FX market (0.2 basis points). DEGIRO and other discount brokers route FX through one or two market-maker partners and earn a spread on top (~25 basis points). The difference compounds dramatically — on a $10,000 conversion, IBKR costs ~$0.20 vs DEGIRO's ~$25.
Does IBKR's inactivity fee matter for European investors?+
Yes, for low-balance accounts. The $10/month inactivity fee applies if your IBKR balance is under $100K and your monthly trading commissions are under $10. For an investor with €5,000-€15,000 on IBKR who only trades occasionally, this can be a meaningful drag (~$120/year on a €10K account). Practical workarounds: trade slightly more frequently (a small monthly trade typically generates enough commission to avoid the fee), maintain larger balance, or use DEGIRO instead for low-frequency low-balance trading. The fee is eliminated for accounts above $100K balance regardless of trading.
Is DEGIRO safer than Interactive Brokers?+
Both are safe. DEGIRO operates as flatexDEGIRO Bank AG, BaFin-regulated, with €100,000 deposit insurance. IBKR Ireland Ltd is regulated by the Central Bank of Ireland with similar EU investor protections. IBKR Group has $13B+ shareholders' equity (publicly disclosed as NASDAQ:IBKR) — significantly larger capital position than DEGIRO. Both have decades of continuous operation without major solvency or regulatory incidents.
Can I open both DEGIRO and IBKR accounts?+
Yes, and most serious European investors do. There's no overlap or conflict between the accounts; each broker handles different parts of the portfolio. The complexity overhead is small (10 minutes of monthly portfolio review across both apps); the cost savings over multi-year horizons typically justify the duplication. Setup time: 30-45 minutes for IBKR onboarding (more thorough), 10-15 minutes for DEGIRO.
Should I move from DEGIRO to IBKR?+
Only if your portfolio composition justifies it. If you're a 100% European-ETF investor with a €30K portfolio, DEGIRO is fine and IBKR offers no meaningful advantage. If you're starting to want US-stock exposure, multi-currency capability, or product range beyond ETFs (options, futures, individual bonds), opening IBKR alongside DEGIRO makes sense. Moving entirely from DEGIRO to IBKR rarely makes sense — you typically lose the free Core Selection advantage on the EUR-ETF portion of your portfolio.

Verdict

Interactive Brokers vs DEGIRO is structural-strengths comparison rather than a winner-takes-all contest. DEGIRO wins for pure EUR ETF buy-and-hold via the free Core Selection list. IBKR wins for multi-currency portfolios via the 125× lower FX cost. For most European investors with mixed strategies, holding both is structurally better than picking one — each broker plays to its strength.

If you're choosing only one: 100% EUR European-ETF investors should use DEGIRO. Anyone with meaningful US or multi-currency exposure should use IBKR. Mixed strategies justify both, and the duplication overhead is modest relative to the cost savings.

For the full individual reviews, see DEGIRO Review and Interactive Brokers Review. For the broader broker landscape, best European brokers.

Open accounts

If your portfolio justifies both, both deserve slots:

For details, read my DEGIRO review and my Interactive Brokers review.

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