Before You Start
- Basic understanding of what ETFs are and how they work
- Residency in an EEA country (for broker eligibility)
- Valid ID and proof of address for broker registration
- Access to online banking for funding your account
Time needed: 1–2 hours (including account setup and first purchase)
What you'll need: Smartphone or computer, internet connection, €1,000, access to a European broker (e.g., Trade Republic, DEGIRO)
Building an all-in-one ETF portfolio is the most efficient way for European investors to get global diversification with minimal effort and cost. In this step-by-step guide, you’ll learn exactly how to build an all-in-one ETF portfolio in Europe starting with just €1,000—including broker selection, ETF choice, purchase process, and common pitfalls to avoid. We’ll use real examples from Trade Republic and DEGIRO, two of the most accessible brokers for Europeans.
Step 1: Choose a Broker Accessible to European Investors
What to do: Select a reputable, low-cost broker that offers all-in-one ETFs and supports your country of residence. For most Europeans, Trade Republic and DEGIRO are excellent choices due to low fees and wide ETF selection.
- Trade Republic: App-based, commission-free for most ETFs, available in most EU countries.
- DEGIRO: Web and app-based, low fees, free ETF list, wide country coverage.
Why it matters: Your broker determines your costs, available ETF options, and overall experience. Fees eat into returns—so a low-cost, trustworthy broker is essential for long-term success.
How to:
- Visit your chosen broker’s website and start the registration process.
- Complete identity verification (passport/ID, proof of address).
- Connect your bank account for funding.
What can go wrong: Registration may be delayed if your documents are unclear or your country isn’t supported. Double-check eligibility before starting.
Expected outcome: You should have an active broker account, ready to receive funds.
Pro Tip
Compare broker fee schedules for ETF trading and custody fees—especially for small portfolios. Trade Republic is often cheapest for buy-and-hold investors.
Step 2: Fund Your Brokerage Account with EUR 1,000
What to do: Transfer €1,000 from your bank account to your broker.
Why it matters: You can’t invest until your account is funded. Some brokers take 1–2 business days to process bank transfers.
How to:
- Trade Republic: In the app, tap Profile → Deposit. Follow the IBAN transfer instructions. Use your personal reference code.
- DEGIRO: Log in, go to Deposit/Withdraw Funds. Follow the steps for SEPA transfer.
What can go wrong: Mistyping your reference code can delay deposits. Always use the exact details provided by your broker.
Expected outcome: Your broker account will show a cash balance of €1,000, ready to invest.
Pro Tip
Test your first transfer with a small amount (€10–€50) if you’re nervous, then send the full €1,000 once it arrives safely.
Step 3: Select Your All-in-One ETF
What to do: Choose an all-in-one ETF that matches your risk tolerance, is domiciled in the EU (for tax efficiency), and is available on your broker’s platform. For most beginners, a global equity ETF is ideal.
Recommended options:
- Vanguard FTSE All-World UCITS ETF (VWCE, ISIN: IE00BK5BQT80) – covers over 3,700 stocks globally, accumulating (reinvests dividends), Irish-domiciled for better tax treatment.
- iShares MSCI World UCITS ETF (IWDA, ISIN: IE00B4L5Y983) – covers developed markets only, accumulating, Irish-domiciled.
Both are available on Trade Republic and DEGIRO. VWCE is a true all-in-one global ETF, while IWDA excludes emerging markets (see our IWDA vs. VWCE comparison for a deeper breakdown).
Why it matters: All-in-one ETFs offer global diversification in a single trade, minimizing complexity and ongoing maintenance. Irish domicile reduces dividend withholding tax for most Europeans.
How to:
- In Trade Republic: Tap Search → ETFs, type “VWCE” or “IWDA”, and select the ETF with the correct ISIN.
- In DEGIRO: Use the search bar, enter the ISIN (e.g., IE00BK5BQT80 for VWCE), and verify the fund name and domicile.
What can go wrong: Picking the wrong ETF (wrong ISIN, distributing instead of accumulating, or non-EU domicile) can increase taxes or reduce diversification.
Expected outcome: You’ve identified the exact ETF to buy, with full confidence it fits your needs.
Pro Tip
Always double-check the ISIN before buying—many ETFs have similar names but different domiciles or structures.
Step 4: Place Your First ETF Purchase
What to do: Buy your chosen ETF with the full €1,000 (or as close as possible, accounting for minimum order sizes and fees).
Why it matters: Executing the trade correctly ensures your money is actually invested. All-in-one ETFs can be bought in one transaction, making this step very accessible for beginners.
How to:
- In Trade Republic:
- Tap your selected ETF (e.g., VWCE).
- Tap Buy.
- Enter the amount (e.g., €1,000).
- Choose “Market order” (executes at current price).
- Confirm the purchase.
- In DEGIRO:
- Select your ETF.
- Click Buy.
- Set the amount or number of shares (VWCE trades in whole shares, price fluctuates; as of May 2024, 1 share ≈ €111).
- Choose “Market order”.
- Confirm the order.
What can go wrong: Using a “limit order” with a price far from current market value can cause your order to not execute. Double-check you have enough cash for at least 1 share (plus fees, if any).
Expected outcome: Your portfolio should now show your ETF holding. For example, with €1,000 and a VWCE share price of €111, you’ll own 9 shares (total value ≈ €999).
Pro Tip
Fractional shares (buying less than 1 whole ETF share) are available on Trade Republic for popular ETFs, letting you invest the full €1,000 even if the share price is high.
Step 5: Set Up an Optional Savings Plan (Automate Investing)
What to do: If you plan to continue investing, set up an automated monthly savings plan for your ETF.
Why it matters: Regular investing (known as “dollar-cost averaging”) reduces the impact of market timing and builds wealth steadily over time.
How to:
- Trade Republic: Tap Portfolio → Savings Plan → Select ETF, enter monthly amount (e.g., €50), and confirm.
- DEGIRO: DEGIRO does not offer automated savings plans, but you can manually repeat monthly buys.
What can go wrong: Forgetting to fund your account each month can cause savings plans to fail. Set up a recurring bank transfer to your broker.
Expected outcome: Your investments grow automatically each month, creating a disciplined habit with zero extra effort.
Pro Tip
Start with a small monthly amount—even €25 or €50—and increase as your confidence and finances grow.
Common Mistakes When Building an All-in-One ETF Portfolio
- Buying non-EU domiciled ETFs: This can lead to higher taxes and regulatory headaches. Always check the ISIN and domicile.
- Mixing multiple ETFs “just in case”: Overcomplicating defeats the point of all-in-one simplicity. Stick to one global ETF unless you have a specific, researched reason.
- Ignoring fees: Some brokers charge for inactivity or custody—read the fine print before committing.
- Panicking during downturns: Selling in a downturn locks in losses. Remember, the goal is long-term growth and compounding.
- Not tracking your portfolio: Use free tools to monitor progress. See our dedicated guide to tracking all-in-one ETF portfolios for tips.
Next Steps
- Continue monthly investments to harness the power of compounding and smooth out market volatility.
- If you want to learn more about choosing between all-in-one ETFs and custom-built portfolios, see All-in-One ETFs vs. Custom ETF Portfolios: Which Is Better for European Investors?
- Consider learning about inflation-proofing your ETF portfolio in our guide to building an inflation-proof ETF portfolio.
- Revisit your portfolio once a year to ensure it still matches your goals and risk tolerance.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.