In the event that something were to happen to DEGIRO, the segregation of client assets ensures that your funds and positions will not be affected. Client assets are held separately from DEGIRO assets, and are not treated as recoverable assets to DEGIRO's creditors. In the event that something happens to DEGIRO, your assets will still belong to you.
In the unlikely event that the segregated assets cannot be returned to clients DEGIRO falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of EUR 20,000).
Furthermore, any money deposited on a DEGIRO Cash Account with flatexDEGIRO Bank AG will be guaranteed up to an amount of EUR 100,000 under the German Deposit Guarantee Scheme.
Information about the German Investor Protection Scheme and the German Deposit Guarantee Scheme can be found in English on the Bafin website here.
A common misconception is that the €20,000 cap on the German Investor Compensation Scheme means that if something were to happen to DEGIRO (for example in the case of bankruptcy) investors who hold more than €20,000 in DEGIRO will lose everything over that amount.
However, this is not the case. Asset segregation is in place to protect client assets in events such as these.
The investor protection scheme only comes into effect in the case that DEGIRO is found to have failed to take sufficient measures to protect client assets, or in the case of fraud on the part of DEGIRO.