How to Start Dollar/Euro Cost Averaging with ETFs on DEGIRO

Cost averaging ETFs in Europe is a proven way to smooth out market volatility, reduce emotional investing, and build long-term wealth. In this tutorial, you’ll learn—step by step—how to set up euro (or dollar) cost averaging with ETFs using DEGIRO. We’ll cover how to select suitable ETFs, set your schedule, execute (and automate) purchases, and avoid tax pitfalls. For a broader overview of ETF investing basics, see our ETF Investing for Beginners in Europe: The 2026 Step-by-Step Starter Guide.

Step 1: Understand Cost Averaging and Why It Works

Cost averaging—whether euro or dollar—means investing a fixed amount into your chosen ETF(s) at regular intervals (e.g., monthly), regardless of price. Over time, this strategy buys more shares when prices are low and fewer when prices are high, helping to reduce the risk of poor market timing.

• Why it matters: It’s a disciplined way to build wealth without trying to predict market moves.
• What can go wrong: If you pick high-fee ETFs or invest irregularly, you may not see the full benefits.

For a deeper comparison between cost averaging and lump sum investing, see Are Lump Sum or Dollar-Cost Averaging (DCA) Strategies Best for European ETF Investors?.

Step 2: Open and Fund Your DEGIRO Account

If you haven’t already, register for a DEGIRO account at degiro.com and complete the identity verification process. Once your account is active:

1. Log in and navigate to Deposit/Withdraw Funds.
2. Follow the instructions to transfer money from your bank account. Minimum deposit is usually €0.01, but plan for at least €100 per month for meaningful cost averaging.

Expected outcome: You should see your available balance reflect your deposit, ready to invest.

Step 3: Choose the Right ETF(s) for Cost Averaging

Not all ETFs are created equal. For European investors, focus on accumulating (not distributing) UCITS ETFs for tax efficiency and simplicity. Consider global, diversified ETFs such as:

• Vanguard FTSE All-World UCITS ETF (VWCE, ISIN: IE00BK5BQT80)
• iShares Core MSCI World UCITS ETF (EUNL, ISIN: IE00B4L5Y983)

On DEGIRO:

1. Go to Products → ETF.
2. Use the search bar to find your chosen ETF by name or ISIN (e.g., "VWCE" or "IE00BK5BQT80").
3. Check the fund's details—TER, domicile, and whether it’s accumulating or distributing.

Expected outcome: You should see the ETF’s price chart and trading details. Confirm that the ETF is available on your preferred exchange (Euronext Amsterdam, Xetra, etc.) and that it matches your investment goals. For ideas, see The Best Accumulating UCITS ETFs for European Long-Term Investors (2026).

Step 4: Decide Your Investment Frequency and Amount

Most Europeans choose to invest monthly, aligning with salary payments. Decide on a fixed euro amount you can comfortably invest each month (e.g., €100, €250, or €500).

• Minimum trade size on DEGIRO: No official minimum, but buying less than one ETF share is not possible (no fractional shares). For example, if VWCE trades at €110, you need at least €110 per trade, plus fees.
• Why it matters: Setting a sustainable, regular amount helps you stick to your plan and benefit from cost averaging.
• What can go wrong: Choosing an amount that’s too high may force you to skip months, reducing the effectiveness of the strategy.

Step 5: Place Your First ETF Order on DEGIRO

DEGIRO does not currently support automatic savings plans like Trade Republic, so you’ll place each order manually. Here’s how:

1. From the ETF’s page, click Buy.
2. Enter the number of shares you wish to purchase (e.g., 1 share of VWCE at €110).
3. Choose Order Type: Market (executes immediately at current price) or Limit (sets a maximum price).
4. Confirm the order and check the estimated total cost, including fees (typically €2 + €1 handling per trade for most European ETFs).
5. Submit the order.

Expected outcome: After execution, your ETF holding will appear in your portfolio. You should see a trade confirmation and the amount deducted from your available cash.

Step 6: Set Up Reminders or Automation

Because DEGIRO doesn’t offer automated ETF savings plans, you’ll need to create a system to ensure you invest regularly:

• Calendar Reminders: Add a recurring event (e.g., "Buy ETF on DEGIRO") in your phone or calendar app on your chosen day each month.
• Bank Automation: Set up a standing order to transfer your investment amount to DEGIRO before your planned purchase date.
• Spreadsheet or Portfolio App: Track each investment’s date, amount, and price to monitor your average cost over time. For app ideas, see How to Use Portfolio Tracking Apps to Simplify Your ETF Investing in Europe.

What can go wrong: Missing a month breaks the discipline of cost averaging. Forgetting to transfer funds can lead to missed opportunities.

Step 7: Monitor, Adjust, and Stay Consistent

Review your portfolio and deposits at least quarterly. Make adjustments only if your financial situation changes or you want to rebalance. Avoid the temptation to time the market based on short-term news.

• Why it matters: Consistency is the heart of cost averaging. Overreacting to market swings can undermine your long-term results.
• What can go wrong: Skipping investments, panic selling, or making frequent ETF switches can increase costs and reduce returns.

For portfolio construction and allocation tips, see The Best Portfolio Allocations for European Passive Investors in 2026.

Step 8: Understand Tax Implications

Each European country taxes ETF gains differently. Key things to check:

• Capital gains tax rules and thresholds
• Dividend taxation (less relevant for accumulating ETFs, but still important)
• Wealth tax (Netherlands, Switzerland, etc.)

Keep records of every purchase (date, amount, price, fees) for reporting. For common pitfalls, see How to Avoid Common Tax Mistakes as a European ETF Investor.

DEGIRO vs. Trade Republic vs. Interactive Brokers: Cost Averaging Features

• DEGIRO: No automated savings plans; manual orders only; low fees; wide ETF selection; no fractional shares.
• Trade Republic: Automated ETF savings plans from €1/month; supports fractional shares; limited ETF range but very easy to automate (tap Portfolio → Savings Plan → Select ETF).
• Interactive Brokers (IBKR): Global ETF access; no automated DCA on European ETFs but can automate via recurring orders or API; supports fractional shares for US stocks only.

For a side-by-side analysis, see Trade Republic vs. DEGIRO vs. Interactive Brokers: Which Broker Is Best for ETFs in 2026?.

Common Mistakes When Cost Averaging ETFs in Europe

• Missing months or making irregular investments (breaks the cost averaging effect)
• Choosing high-fee, non-UCITS, or distributing ETFs without understanding the tax impact
• Ignoring transaction fees on small purchases (these can erode returns if not minimised)
• Trying to “time” the market by skipping or doubling up investments
• Not keeping proper records for tax reporting

For more pitfalls—and how to avoid them—see 7 Biggest Mistakes New European ETF Investors Make (And How to Avoid Them).

Next Steps

• Track your results and review your plan annually to ensure it still fits your goals
• Consider diversifying across equity and bond ETFs as your portfolio grows
• Explore automation options if manual investing becomes tedious
• Read the ETF Investing for Beginners in Europe: The 2026 Step-by-Step Starter Guide for a broader understanding of ETF investing in Europe

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.