Degiro Question

[apismellifera]

I am by no means a sophisticated investor but I have recently starting investing with Degiro. I'm a little bit confused by a negative balance in my account overview. I have not purchased anything on margin yet I am showing a negative balance of -€904.71. When I click the help button to view what it pertains to I get this.

"This number refers to the net amount to be converted into participation in the EUR Money Market Fund/cash to be transferred to or from your Cash Account at flatexDEGIRO Bank"

I have also seen small interest charges in my transactions over the last while which have confused again. Again - no margin trading. Just a few ETFs and stocks that I plan on holding. Can anyone shed some light on this for me? TIA

 

[jpd]

Not sure what you mean by "my account overview"?

Are we talking of mobile app, web site, paper statement or something else?

Some of your positions could be at a loss?

 

[apismellifera]

Sorry for the lack of clarity - the account overview showing the total balance, porfolio value etc. When you login to Degiro portal/website it's basically a snapshot of your account holdings etc.

 

[AJAM]

Could you give a screenshot with details redacted?

 

[apismellifera]

Sure - see attached. The second attachment is what shows when I click the information icon next to the negative balance. Thanks.

 

[Tomalong]

I believe you are using margin and have that amount taken. I understand you said you aren't but you may be without realising.
Check how much you deposited vs how much you have current + your P/L.

 

[Tomalong]

The small interest being taken monthly is margin payment.
Is your Balance 900 less than your Portfolio amount ?

 

[Corola]

It looks like you are trading on margin. You have to take a short test before you can enable a margin account on Degiro though, did you do that?

Bear in mind your "Available to trade" is your cash + margin available so you may have spent that amount instead of your cash balance.

 

[jpd]

To me, it sounds as if you should not be trading on margin - margin trading is high risk and you need to know what you are doing

 

[apismellifera]

The small interest being taken monthly is margin payment.
Is your Balance 900 less than your Portfolio amount ?

No - my Portfolio amount is several thousand more.

It looks like you are trading on margin. You have to take a short test before you can enable a margin account on Degiro though, did you do that?

Bear in mind your "Available to trade" is your cash + margin available so you may have spent that amount instead of your cash balance.

I remember the test but had no intention of margin trading. I purchased everything in the same manner so I don't know how I messed up.

To me, it sounds as if you should not be trading on margin - margin trading is high risk and you need to know what you are doing

As stated above it wasn't my intention to trade on margin - I know what it is but definitely not enough to execute. I just wanted to pick a few stocks and etfs to hold long term, investing every month but I think the only thing I can do is try and figure out which I am trading on margin and close the position. Failing that I will close all my positions and start over and be more careful!

 

[apismellifera]

Thank you everyone who replied until now. I have it figured out now. I thought the "available to trade" as money that I had already deposited previously and worked away. I only just realised that Degiro simply give you the credit based on the value of your portfolio. I should have paid closer attention. I sold off what needed to be to bring my account back to what was deposited. No real damage done thankfully. Onwards and every upwards.