Does DEGIRO offer "free" ETFs? Discover all the associated costs
Until April 2023, DEGIRO offered a list of ETFs called the "Popular ETF Selection," where buying and selling these ETFs could be done without any transaction fees.
In October 2025, DEGIRO overhauled this list, now called the ETF Core Selection. The main changes: the selection was expanded to over 1,000 products (ETFs, ETCs, and ETNs) traded on the Tradegate exchange, the connectivity fee on those products was removed, and the rules were simplified. A €1 handling fee per transaction still applies, charged by an external entity - so while these ETFs remain "free" in terms of DEGIRO's commission, the investment is not entirely cost-free.
In this article, we will analyze DEGIRO's ETF Core Selection in detail, the associated costs, and whether it is still worth investing in this option.
What is DEGIRO's "ETF Core Selection"?
DEGIRO offers a list called the ETF Core Selection (formerly the "Popular ETF Selection"), which includes various ETFs, ETCs, and ETNs that can be bought or sold under special conditions. This program was designed to attract investors looking to minimize costs, especially those who prefer to invest in ETFs regularly. Since the October 2025 overhaul, these conditions apply exclusively to listings on the Tradegate exchange.
Which ETFs are included in this list?
The full list of ETFs in the popular selection can be found in this link. Some of the highlighted ETFs are the following:
Note: these ETFs remain available, but only their Tradegate listing is now part of the ETF Core Selection. The same ETF on another exchange does not qualify for the special conditions.
Costs associated with DEGIRO's "Popular ETF Selection"
Although the ETFs in this list offer advantageous conditions, there are additional costs that should not be ignored. Let’s analyze the main ones:
1. Handling fee
A €1 handling fee is applied to each transaction of ETFs from the "Popular ETF Selection.", only if it is traded on the Tradegate exchange. In other words, the same ETF can be listed on several exchanges, but the cost on each of them differs.
If we take the iShares MSCI World UCITS ETF Acc (IE00B4L5Y983) as an example, we see that it can be traded on the following exchanges:
According to DEGIRO, “this fixed fee covers all costs incurred related to the execution of your order (e.g., clearing and settlement expenses, brokerage fees, confirmation contract fees, regulatory fees, and execution fees).”
2. Connectivity fee
With the October 2025 overhaul, the connectivity fee no longer applies to ETFs in the ETF Core Selection traded on Tradegate. This was one of the key improvements of the new model.
The annual €2.50 connectivity fee per exchange still applies when you invest in ETFs outside the Core Selection or on other exchanges (such as Euronext, XETRA, or London). It does not apply to your domestic market (e.g., German investors trading German stocks) nor to Core Selection ETFs on Tradegate.
3. External product costs
In addition to the fees charged by DEGIRO, there are costs imposed by the ETF issuers themselves, such as the Total Expense Ratio (TER), the annual cost of managing an ETF, which varies by fund.
For example, the iShares Core MSCI World UCITS ETF (IWDA) has a TER of 0.20%. In other words, an investment of €100 in IWDA would incur an annual cost of €0.20.
It is important to note that this is an implicit cost. For instance, if IWDA delivers a 5% return in a year, this means its gross return before fees was approximately 5.20%.
4. Spread costs
The spread refers to the difference between the buy price (bid) and the sell price (ask) of an asset. In highly traded ETFs like IWDA, the spread tends to be small, but it remains an implicit cost for the investor.
- The "buy" price is what someone is willing to pay for the ETF (your selling price).
- The "sell" price is the price at which the ETF would be sold to you (your buying price).
For example, in an image where the buy price is €108,305 and the sell price is €108.32, the €0.015 difference is the spread.
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How is the handling fee applied?
DEGIRO applies what it calls a "Fair Use Policy" for order execution.
- Each calendar month, the first trade executed on an ETF from the Popular ETF Selection does not include DEGIRO’s trading commission, regardless of trade size or direction, as long as it does not result in a short position.
- However, a €1 handling fee still applies.
- Additional costs, such as currency conversion fees and spreads, may still apply.
Subsequent trades on the same instrument within the same calendar month also do not include DEGIRO’s commission or third-party costs, as long as:
- The transaction is in the same direction (i.e., buy or sell) as the first trade made that month on that instrument.
- The transaction value is at least €1,000.
Once a trade in the opposite direction or a trade below €1,000 is executed on the same instrument within the same month, the rule no longer applies to any further transactions, and standard commissions are applied:
- €2 DEGIRO commission + €1 handling fee per transaction.
Practical example: Buying the IWDA ETF
To illustrate the costs of investing in an ETF from the ETF Core Selection, let's consider buying the iShares Core MSCI World UCITS ETF (IWDA) on the Tradegate exchange.
Scenario: Buying 10 units of IWDA
- Price per unit: €100 (simplified for this example)
- Handling fee: €1
- Commission: €0 (on Tradegate there is no DEGIRO commission for Core Selection ETFs)
- Connectivity fee: €0 (no longer applies on Tradegate)
- TER: 0.20% annually on the invested amount (€1,000 x 0.20% = €2 per year)
Calculation:
- Initial investment: €1,000 (10 units x €100)
- Initial costs: €1 (handling fee)
- Recurring costs: €2/year (TER), plus potential spread costs when buying/selling
Total cost in the first year: €1 + €2 = €3
This calculation assumes that the ETF price does not change over the year (important for understanding the impact of the TER). The example highlights how the new model significantly reduced costs compared to the previous one: the transaction commission and connectivity fee are gone, leaving essentially the handling fee, the TER, and the spread.
Conclusion
The October 2025 overhaul made DEGIRO's ETF Core Selection cheaper and simpler: by concentrating the selection on Tradegate, the broker eliminated both the connectivity fee and the transaction commission on these products, leaving essentially the €1 handling fee. Even so, ETFs are not completely "free," as costs like the TER and the spread still exist and can accumulate over time, reducing the investor's net returns.
There is also a trade-off to consider: ETFs bought on Tradegate are not easily transferable to other brokers, since most European platforms do not accept inbound transfers of securities from this exchange. For long-term investors who don't expect to switch brokers, this is largely irrelevant; for those who value flexibility, it's worth keeping in mind.
Overall, investing in ETFs through DEGIRO remains a competitive option, especially for those looking for simplicity and low costs. The key is to fully understand the pricing structure and how it impacts your financial goals.
