Before You Start
- Basic understanding of ETFs and investment risks
- Resident of a European country (EU or EEA)
- Valid proof of identity and address for broker registration
- European bank account (SEPA transfers recommended)
- Comfort with online/mobile investing platforms
Time needed: 45–60 minutes (including broker sign-up and first plan setup)
What you'll need: Smartphone or computer, internet access, personal identification, bank account, and access to DEGIRO, Trade Republic, or Interactive Brokers
ETF savings plans are rapidly gaining traction among European investors seeking a simple, cost-effective way to build long-term wealth. If you’re looking for a hands-off, affordable, and disciplined approach to investing, understanding how ETF savings plans work—and how to set one up on leading European platforms—should be at the top of your to-do list.
What is an ETF Savings Plan—and Why Are They So Popular?
An ETF savings plan (sometimes called a “Sparplan” in Germany) is an automated investment program where you invest a fixed amount of money at regular intervals (e.g., monthly) into selected exchange-traded funds (ETFs). Instead of manually buying ETFs each month, your broker automatically invests for you—making it easy to build a diversified portfolio over time.
- Why it matters: Regular investing helps you benefit from euro-cost averaging (smoothing out market ups and downs), removes emotion from decision-making, and leverages the power of compounding.
- Who uses them: Popular among both beginners and experienced investors who want to automate their investing and keep costs low.
- Key benefits: Low fees, no need to time the market, and accessible even with small monthly amounts (as low as €1–€25 on some platforms).
Pro Tip
ETF savings plans are ideal if you want to “set and forget” your investments—just make sure to review your plan once or twice a year to ensure it still fits your goals.
Let’s walk through how to set up an ETF savings plan on three of Europe’s most popular platforms: DEGIRO, Trade Republic, and Interactive Brokers (IB). For each, you’ll see platform-specific steps, real ETF examples, and a comparison of costs and features.
Step 1: Choose Your Platform
Selecting the right broker is crucial. Each has different fees, minimums, available ETFs, and user experience. Here’s a quick overview:
| Broker | Monthly Minimum | ETF Selection | Fees (per execution) | Automation | Fractional Investing |
|---|---|---|---|---|---|
| DEGIRO | ~€50 (manual recurring orders) | 2,000+ (core selection: 200+ free ETFs) | €0–€2.50 (core selection often free) | Manual only (no true automated plan) | No |
| Trade Republic | €1 | 1,700+ (iShares, Xtrackers, etc.) | €0 (no commission; €1 withdrawal fee) | Fully automated | Yes |
| Interactive Brokers | ~€50 (manual recurring orders via IBKR GlobalTrader app or desktop) | Thousands (all major EU and US ETFs) | €1–€2 (per trade, exchange-dependent) | Manual only (no automated plan for EU ETFs) | No |
If you value full automation and low minimums, Trade Republic stands out. If you want the lowest possible costs on a select list of ETFs, DEGIRO’s core selection is unbeatable. Interactive Brokers is best for those needing the broadest ETF access and advanced tools.
Pro Tip
For a full breakdown of European investing apps, see the Ultimate Guide to European Investing Apps.
Step 2: Open and Fund Your Brokerage Account
You’ll need to register with your chosen broker, verify your identity, and deposit funds. Here’s what to expect:
- DEGIRO: Register at DEGIRO’s official site. Upload a passport/ID and proof of address. Link your SEPA bank account. Initial deposit can be as low as €0.01.
- Trade Republic: Download the Trade Republic app (mobile-only). Complete the video identification process. Link your bank account and deposit at least €1 to start a plan.
- Interactive Brokers: Register at IBKR Europe. Submit required documents and wait for approval. Deposit via SEPA transfer (minimums vary, but at least €50 is practical for recurring investing).
Why it matters: You can’t start an ETF savings plan without a funded, verified account. Delays can occur if your documents aren’t clear, so double-check before uploading.
Pro Tip
Use a SEPA transfer for fast, fee-free funding within the Eurozone. Card payments are often not available or attract extra fees.
Step 3: Select Your ETF(s)
Picking the right ETF is as important as the savings plan itself. Most European investors focus on broad, low-cost index ETFs. Here’s how to choose:
- Look for: UCITS compliance (EU regulation), low total expense ratio (TER, e.g., 0.07–0.20%), large fund size, and good liquidity.
- Popular choices:
- Vanguard FTSE All-World UCITS ETF (IE00B3RBWM25) – global stocks, ~0.22% TER
- iShares Core MSCI World UCITS ETF (IE00B4L5Y983) – developed markets, ~0.20% TER
- Xtrackers MSCI Emerging Markets UCITS ETF (IE00BTJRMP35) – emerging markets, ~0.20% TER
- Lyxor MSCI World UCITS ETF (LU1781541179) – alternative to iShares, ~0.12% TER
Why it matters: The ETF you pick determines your risk, return, and diversification. Always double-check the ISIN to avoid buying the wrong share class or currency.
Pro Tip
Many brokers offer “core selection” ETFs with zero commission. Check their lists to save on fees—especially if you plan to invest monthly.
Step 4: Set Up Your ETF Savings Plan (Platform-Specific Instructions)
4.1. DEGIRO – Manual Recurring Orders (No True Automation)
DEGIRO does not currently offer automated ETF savings plans. However, you can manually create a recurring calendar reminder to buy your chosen ETF each month. Why bother? DEGIRO’s “core selection” includes over 200 commission-free ETFs, making it the cheapest option for many.
- Log in to DEGIRO (web or app).
- Search for your ETF by ISIN (e.g., IE00B4L5Y983 for iShares Core MSCI World UCITS ETF).
- Click “Buy” and enter your monthly investment amount (e.g., €100). Note: DEGIRO does not support fractional shares—your amount must be enough to buy at least one full share (e.g., if share price is €70, you can buy one share per month with €100, remainder stays as cash).
- Choose “Market” or “Limit” order. For savings plans, “Market” is usually fine (since you’re investing long-term).
- Confirm your order. You’ll see a confirmation screen with the ETF name, quantity (e.g., 1 share), and approximate value (e.g., €71.30).
- Set a recurring calendar reminder on your phone or email to repeat the process each month.
What can go wrong: Forgetting to execute your order, or not having enough cash to buy full shares. DEGIRO doesn’t automate purchases or allow investing “spare change.” Manual effort is required.
4.2. Trade Republic – Fully Automated ETF Savings Plans
Trade Republic is arguably the most user-friendly option for ETF savings plans in Europe. It offers full automation, no commissions, and supports fractional investing—making it ideal for small, regular contributions.
- Open the Trade Republic app on your smartphone.
- Tap “Portfolio” at the bottom menu.
- Select “Savings Plan” (German: “Sparplan”).
- Tap “+ Add Savings Plan”.
- Type the ETF name or ISIN (e.g., IE00B3RBWM25 for Vanguard FTSE All-World).
- Choose your investment amount (minimum €1, increments of €1).
- Set the frequency (monthly, bi-weekly, etc.) and the execution date (e.g., 1st of each month).
- Review the summary. Confirm the plan.
- You’ll see your new savings plan listed under “Savings Plans” with the ETF name, amount, and next execution date.
Expected outcome: On the scheduled day, Trade Republic will automatically invest your chosen amount in the selected ETF—even if the amount is less than the price of a full share (fractional shares supported). You’ll receive a notification and can view the purchase in your portfolio.
What can go wrong: Insufficient funds in your account on the execution date (the plan will pause or fail), or choosing an ETF not available for savings plans.
Pro Tip
Want to invest in multiple ETFs? You can set up several savings plans in parallel (e.g., €75/month in MSCI World, €25/month in Emerging Markets).
4.3. Interactive Brokers (IBKR) – Manual Recurring Orders
Interactive Brokers does not currently offer automated ETF savings plans for EU-listed ETFs. However, you can set up recurring calendar reminders to place monthly buy orders. The advantage? Access to the broadest ETF universe and industry-low trading fees.
- Log in to IBKR WebTrader or the IBKR GlobalTrader app.
- Search for your chosen ETF by ISIN (e.g., IE00BTJRMP35 for Xtrackers MSCI Emerging Markets).
- Click “Buy,” enter your order amount (must be enough for at least one full share—fractional shares are not available for EU ETFs), and select “Market” or “Limit” order.
- Confirm the order. You’ll receive a trade confirmation with the executed price (e.g., €22.45 per share, total €67.35 for 3 shares).
- Set a recurring reminder to repeat the process each month.
What can go wrong: Forgetting to place your order, or not having enough cash for a full share. IBKR’s interface is more complex than Trade Republic or DEGIRO—double-check you’re buying the correct ETF and on the right exchange.
Pro Tip
If you want to buy less than one share, see our guide to buying fractional shares of ETFs in Europe.
Step 5: Monitor and Adjust Your Plan
Once your plan is live, regular monitoring is essential:
- Check for failed purchases (e.g., due to insufficient funds).
- Review your ETF’s performance at least once per year.
- Rebalance if your portfolio drifts from your desired allocation (e.g., if stocks outperform bonds significantly).
- Update your plan if your financial situation or goals change.
Why it matters: Even automated investing requires periodic oversight. Ignoring your plan for years can lead to missed contributions or suboptimal asset allocation.
Pro Tip
Set a semi-annual calendar reminder to review your savings plan and rebalance if needed.
Cost Comparison: DEGIRO vs. Trade Republic vs. Interactive Brokers
| Broker | Plan Automation | Commission per Trade | ETF Universe | Fractional Shares | Monthly Minimum | Other Fees |
|---|---|---|---|---|---|---|
| DEGIRO | No (manual) | €0 (core selection); €2.50 otherwise | 2,000+ (200+ free core ETFs) | No | ~€50 (must buy whole shares) | €1.00 connectivity fee/month (on some exchanges) |
| Trade Republic | Yes (fully automated) | €0 | 1,700+ (all major providers) | Yes | €1 | €1 withdrawal fee |
| Interactive Brokers | No (manual) | ~€1–€2 | Thousands (all EU/US ETFs) | No (for EU ETFs) | ~€50 (must buy whole shares) | €0 inactivity fee |
Summary: For most beginners and “hands-off” investors, Trade Republic’s full automation, zero commissions, and fractional investing make it the clear winner. DEGIRO is best if your chosen ETF is in their “core selection.” Interactive Brokers is ideal for advanced users seeking maximum ETF choice.
Common Mistakes with ETF Savings Plans in Europe
- Assuming all platforms offer real “savings plans”: Only Trade Republic (and a few others) offer full automation. DEGIRO and IBKR require manual execution.
- Picking the wrong ETF share class: Always double-check ISIN, distribution policy (accumulating vs. distributing), and currency.
- Forgetting about minimum investment amounts: If you can’t buy a full share, your money will sit as cash (except on platforms with fractional shares).
- Not funding your account in time: Missed contributions can disrupt your compounding and cost averaging.
- Ignoring fees outside commissions: Watch for withdrawal fees, currency conversion charges, and account maintenance fees.
- Neglecting periodic review: Set reminders to check your plan at least twice per year.
Next Steps
- Decide which platform best fits your needs (automation, ETF choice, fees).
- Register and verify your brokerage account.
- Pick your ETF(s) and set up your first savings plan—start small if you’re unsure.
- Set calendar reminders for manual plans (DEGIRO, IBKR), or rely on automation (Trade Republic).
- Review your plan every 6–12 months and adjust as needed.
- Want to explore more? Read our step-by-step guide to buying US stocks from 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.