FRANKFURT/MAIN, Germany–(BUSINESS WIRE)–Following today’s decision by the European Central Bank (ECB) to increase the interest rate on the deposit facility, flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) , Europe’s largest and fastest growing online broker, will pass on the resulting cost benefits directly to its customers and will completely waive the negative interest charge for all customers from August 1. 2022. Against the backdrop of over EUR 3 billion of client cash currently on deposit, a positive interest rate environment earning potential for flatexDEGIRO.
Frank Niehage, CEO of flatexDEGIRO: “When we introduced the deposit rate with the ECB as a negative interest charge in 2017, we did so in an open and transparent way, without hiding it in other increases of charges. At the time we promised: when interest rates go up, we will abolish this negative interest rate. And our word is true. We are now keeping that promise. It remains to be seen if other banks and online brokers will follow suit and waive the hidden fees now.
Muhamad Chahrour, CFO of flatexDEGIRO and CEO of DEGIRO: “With today’s ECB interest rate decision and expected imminent steps towards a positive interest rate environment, a decade of “zero and negative interest is coming to an end in Europe. Beyond the relief for our customers, this represents significant revenue potential for flatexDEGIRO, without us taking on increased investment risk. Strengthening our revenue and our resulting financial strength gives us additional and lasting advantages over online brokers, who cannot access this potential due to their lack of a banking license.”
About flatexDEGIRO AG
flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) operates a leading and fastest growing online brokerage platform in Europe. Based on modern in-house state-of-the-art technology, customers of the flatex and DEGIRO brands are offered a wide range of independent products with execution on the best TIER 1 exchanges. The technological advance along with the high efficiency and Strong economies of scale enable flatexDEGIRO to continuously improve its service offering to customers.
With over 2 million client accounts and over 91 million securities transactions processed in 2021, flatexDEGIRO is the largest online broker for private investors in Europe. In times of banking consolidation, low interest rates and digitization, flatexDEGIRO is ideally positioned for continued growth. Over the next five years, flatexDEGIRO aims to grow its customer base to 7-8 million customer accounts and process 250-350 million transactions per year, even in years of low volatility.
More information on www.flatexdegiro.com/en
|Omniturm, Große Gallusstrasse 16-18|
|60312 Frankfurt / Main|
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|Listed:||Regulated market in Berlin, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Munich, Stuttgart, Tradegate Exchange|