DEGIRO believes that it is important that clients understand how the structure of these Money Market Funds works. DEGIRO is not a bank but an investment firm. In the Netherlands, investment firms are not allowed to hold the money of clients. Therefore, when you become a client of DEGIRO, you give a standing order to invest money into a Money Market Fund. As such, at DEGIRO you do not hold money. For every currency available in the trading platform, a separate Money Market Fund is also available. The objective of a Money Market Fund is to realise a return that is equal to the market interest rate with as low risk as possible. An additional advantage to the low risk, is that your Money Market Fund participations, just like your other investments, are kept strictly separate from the assets of DEGIRO.
Money Market Funds are often used by institutional investors, such as pension funds, to hold large amounts of money in a safe way. Approximately €1 trillion is currently being held in Money Market Funds in Europe (Source).
"The objective of a Money Market Fund is to realise a return that is equal to the market interest rate with as low risk as possible."