A scaled, highly profitable European broker-bank poised to benefit from the EU’s PFOF reset—if rates and IT execution cooperate.
Overview
flatexDEGIRO SE is a leading pan-European online broker and fintech with ~3.5m retail clients across 16 countries, ~€90bn assets under custody, and ~75m annual securities transactions. It operates through three brands—flatex (Germany/Austria), DEGIRO (Netherlands/Southern Europe), and ViTrade (professional/high-frequency)—offering low-cost access to 50+ global exchanges and OTC venues. Revenue is split between transaction-based commissions and recurring/non-transaction income. In FY2025 (prelim), transaction revenue was ~€350.1m on 75.3m transactions, with average commission rising to ~€4.90 (from €4.47) helped by product mix (FX-fee cross-currency trades) and the addition of digital asset trading. Recurring income reached ~€209.7m, led by net interest income (~€165.6m net) generated from monetizing ~€6.2bn client cash and ~€1.3bn margin loans, enabled by its regulated bank (direct Bundesbank placement and AAA bond portfolio). Additional recurring sources include BPO/outsourcing income (servicing ~€7.7bn AuC for third-party banks), other commission fees, and securities lending. The integrated bank+IT stack creates scale advantages and a platform positioned to benefit from Europe’s shift toward self-directed investing.