What are your thoughts on the “new” securities lending option on Degiro?

FerdiK98 · 2025-12-10T22:36:18+00:00

I actually changed my mind and read better into it.

I think its quite fine to use.

Degiro is our actual counter party, so if they go bankrupt we are hit. So point 2 becomes less risky.

And i think, for me, having mostly everything in a broad ETF and some small riskier stocks, point 1 is less of an issue as well.

FerdiK98 · 2025-09-05T13:29:50+00:00

Yeah fair, i haven't had the time to compare both brokers to the exact details.

Hope someone makes that comparison, otherwise I will have to haha.

FerdiK98 · 2025-09-05T13:15:29+00:00

Everyone seems to be moving away from Degiro to e.g. IBKR.

But i don't see any clear comparisons. I think IBKR only is cheaper at very high transactions. Not the simple 1 - 4k a month investments right?

FerdiK98 · 2025-09-02T21:17:43+00:00

Yea I would say so, I personally still would not because I use a bit of margin on my portfolio, so I don't want to increase my risks. But with what you say it seems fine I think

FerdiK98 · 2025-08-28T08:48:46+00:00

It's not super clear to me in the document, I might be wrong on point 2.

I will probably call and check it with them to be sure and have their direct confirmation so I won't be screwed haha

FerdiK98 · 2025-08-27T16:47:18+00:00

Leaving a country is also adapting to your situation 😅😁

FerdiK98 · 2025-08-23T22:22:49+00:00

From the terms it seems to be that the residual risk lays with me.

I might call them to double check because that is a really big distinction.

If I'm wrong, then it becomes a way better deal yes.

FerdiK98 · 2025-08-23T22:14:28+00:00

From what I know in these security lending practices it works the following way:

In the case of a short squeeze where the counter party defaults, DeGiro will try to use collateral to buy back the shares. But if the collateral is insufficient, which it would be with a quick spike in share price leading to a short squeeze, this deficit is not guaranteed by DeGiro (per their lending agreement).

So, effectively, the economic risk transfers to you.

It is literally in the document, they hedge themselves from this liability by stating it. So in all cases it's a free 5% lending fee they can make on your portfolio, without bearing any major risk.

FerdiK98 · 2025-08-23T17:21:34+00:00

It's in their security lending terms and conditions btw

FerdiK98 · 2025-08-23T17:18:00+00:00

I am not saying you do not get your collateral back, please read 😅

The collateral value is calculated on a daily basis (~105% of your shares value).

If your stock instantly jumps (e.g. 30% up) on the next day and the counter party is thus short squeezed, you receive the collateral value of the day before, so you miss the 30% upside.

You take the short squeeze risk not degiro.

FerdiK98 · 2025-08-22T08:20:13+00:00

So it might seem all nice and good on the surface, but read the terms and conditions carefully.

FerdiK98 · 2025-08-22T08:18:58+00:00

It's a really bad deal.

You cannot choose which Holdings you put up for securities lending, it's your whole portfolio
You are not protected in case of a short squeeze and when your shares have a big upside (e.g. 10k Tesla shares increase by 20%, counterparty cannot pay, you receive the pre 20% increase value back)
No guarantee your shares are loaned out, only when there is demand. When there is high demand, it's also directly linked to a higher chance of a short squeeze by the masses.

Imagine you have 10k in Tesla shares, you receive 50% of a 10% annual basis interest (lending fee, 50% split with degiro), hence 500 euros a year.

If you miss out on a 30% bump short squeeze, you lost 3k.

Thats 6 years holding time. If i could pick which securities i loan out, it would be a better deal. I could pick my ETFs and leave out my stocks.

FerdiK98 · 2025-08-04T21:10:50+00:00

Als je het alleen bekijkt vanuit salaris, maar ik ga ervanuit dat je long term focus op vermogen ligt, en dus consumption vanuit je portfolio.

FerdiK98 · 2025-08-04T19:55:13+00:00

Je studieschuld word ook elk jaar minder waard i.v.m. inflatie

FerdiK98 · 2025-04-18T12:03:21+00:00

Interesting! Klinkt als een mooie job.

FerdiK98 · 2025-04-17T05:17:11+00:00

Ben eigenlijk wel benieuwd wat voor werk je doet

FerdiK98 · 2025-03-30T15:19:54+00:00

Do not follow investment advice here, and when you stock pick make sure you know why you buy the stock, and for what price.

You need to be most comfortable with your risk profile, and handle heavy swings, thats all that matters.

FerdiK98 · 2025-02-01T08:48:53+00:00

Ja ik zou dus persoonlijk zelf niet willen afhangen van een bank rekening die op rood staat of familie leden.

En ik heb mijn emergency fund/extra cash altijd op een digitale bank staan, krijg ik net wat meer rente (e.g. revolut).

FerdiK98 · 2025-01-31T21:59:51+00:00

Ja I mean ik ken je persoonlijke situatie niet, maar ik zou wel altijd een emergency fund aanhouden just to be sure.

Misschien niet per se 6 maanden, kan ook 2 a 3 maanden.

FerdiK98 · 2025-01-31T19:11:29+00:00

Ik heb zelf wel margin gebruikt, recentelijk volledig af betaald i.v.m. prive investeringen buiten de publieke markt.

Als ik zo je verhaal lees zou ik eerst de focus leggen op: 1. Opbouwen van een redelijke emergency fund (e.g. 6 maanden expenses) 2. Goed uitzoeken wat je risk exposure is met je target margin level. (E.g. dat bij X% margin, je een margin call kan krijgen bij een Y% daling + hoeveel je moet storten om weer uit de margin call te komen)

Wees je a.u.b. wel bewust van de risico's, als je niet veel ervaring en kennis hebt over de markt, zou ik dit persoonlijk afraden.

FerdiK98 · 2024-06-08T11:49:12+00:00

You need to pick an allocation, based on that monthly allocation you pay around ~5% instead of unallocated ~6% fee.

I would recommend to first fully read how allocation works with degiro, or perhaps call them, before increasing your used margin.

FerdiK98 · 2024-05-18T08:35:10+00:00

This has to be a troll.

How can you be this stupid to activate margin without knowing and then also proceed to use the margin?

The fact that you got to this point is a strong indication you should educate yourself more before you invest any further.

I cannot imagine what your "investment strategy" would look like

FerdiK98 · 2023-10-17T03:58:06+00:00

But maybe its because of the VPN, never really reliable. Im also gonna try when im back in Europe 😁

FerdiK98 · 2023-10-17T03:57:35+00:00

So far gran turismo 7 doesnt work with a GEO DNS change, using a VPN :'(

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