Before You Start
- At least one parent or legal guardian must have a valid EU/EEA ID and proof of address
- Your child’s birth certificate or official proof of relationship (in local language or English translation)
- Be aware of the minimum age requirements and local regulations for junior/custody accounts in your country
- Understand the tax implications for minors in your jurisdiction
- Plan for initial deposit (usually €1–€100 minimum, depending on broker)
Time needed: 1–2 hours for application, plus 1–5 working days for verification
What you’ll need: Smartphone or computer, internet access, documents listed above, and a bank account in your name
Opening a custody (or junior) investment account for your child in Europe is one of the smartest ways to give them a financial head start. This step-by-step guide explains exactly how to open such an account with leading brokers like Trade Republic, DEGIRO, and Interactive Brokers. You'll learn what documents are needed, how the process works, where legal and tax pitfalls hide, and which EUR-denominated ETFs are suitable for long-term child investment. Concrete examples and a handy checklist are included.
Step 1: Understand Custody Accounts for Children in Europe
What to do: Before choosing a broker, review how custody/junior accounts work in your country and with your preferred platform.
- Custody (or junior) accounts are investment accounts opened by a parent or guardian on behalf of a minor.
- Ownership is in the child's name, but the adult manages the account until the child reaches legal age (usually 18).
- Each broker and country has specific rules about who can open, control, and withdraw from the account.
Why it matters: Not all brokers in Europe offer custody accounts for children, and the process can vary significantly. Understanding the basics helps avoid wasted time or legal headaches.
What can go wrong: Applying with a broker that doesn’t support junior accounts in your country may result in rejection or account closure. For example, DEGIRO only supports junior accounts in select jurisdictions (like Germany and the Netherlands), while Interactive Brokers has a broader European reach but stricter KYC (Know Your Customer) checks.
Pro Tip
Check the broker’s official support or FAQ pages to confirm availability of custody accounts in your country before gathering documents. For example, see DEGIRO's official minor account policy.
Step 2: Choose the Right Broker for a Child Custody Account
What to do: Compare leading European brokers on eligibility, fees, product range, and user experience. Here’s how the top options stack up:
| BROKER | Account Type | Countries Supported | Minimum Deposit | Core Fees |
|---|---|---|---|---|
| Trade Republic | Junior Depot | Germany, Austria (as of 2024) | €1 | €0 ETF savings plans; €1 per trade |
| DEGIRO | Minor Account | Germany, Netherlands, select others | €0 | €2 + 0.03% per ETF trade (varies by country) |
| Interactive Brokers | UGMA/UTMA (similar to junior account) | Most EU/EEA countries | €0 | €0–€3 per ETF trade (IBKR Lite/Pro) |
Why it matters: Not every broker is equally accessible or cost-effective for parents. Some, like Trade Republic, offer commission-free ETF savings plans, which is ideal for regular EUR contributions. Others, like Interactive Brokers, support more countries but have a steeper learning curve.
What can go wrong: Choosing a broker not available in your country or one with high ongoing fees can eat into your child’s long-term returns. For a full comparison, see our head-to-head broker analysis.
Step 3: Gather the Required Documents
What to do: Collect and scan/photograph the following documents before starting the application:
- Parent/guardian’s valid EU/EEA ID (passport or national ID card)
- Proof of address (utility bill, bank statement, or government letter, less than 3 months old)
- Child’s birth certificate (and official translation if not in English/German/Dutch for most brokers)
- Tax identification numbers for both parent and child (if required in your country)
- Bank account IBAN in the parent’s name (for deposits/withdrawals)
Why it matters: European brokers are legally required to verify both the child’s and parent’s identities for anti-money laundering (AML) and KYC compliance. Missing or blurry documents are the number one reason for rejection or delays.
What can go wrong: If names or addresses don’t match exactly (including diacritics or middle names), your application could be suspended. Double-check all details before uploading.
Step 4: Complete the Account Application Online
What to do: Start the online application with your chosen broker. Here’s how it works on each platform:
- Trade Republic: Download the app, select “Depot für Kinder” (Junior Account), and follow the prompts. You’ll need to upload documents for both child and parent, then complete a quick video identification call (in German or English).
- DEGIRO: Login to your DEGIRO account (or create one), then request a minor account via the online form. Upload the required documents and wait for manual review (1–3 days).
- Interactive Brokers: Go to Interactive Brokers’ EU portal, start an individual application, and select “Minor/UGMA/UTMA” when prompted. Complete the KYC forms for both parties and upload documentation.
Why it matters: Most brokers require both digital document upload and a video or selfie verification. This is essential to prevent fraud and ensure the account is truly for your child.
What can go wrong: Failing to provide a valid, recognized translation for your child’s birth certificate, or skipping the video call, will stall your application.
Pro Tip
If your German is rusty and you’re applying with Trade Republic, you can request an English-speaking agent for the video KYC call in advance via their official support.
Step 5: Fund the Account and Set Up an Investment Plan
What to do: Once your custody account is approved (you’ll receive an email confirmation), transfer your first deposit from your linked bank account. Then set up an investment plan:
- Trade Republic: Tap Portfolio → Savings Plan → Select ETF. Choose an EUR-denominated accumulating ETF (see below), enter the monthly amount (as low as €1), and set the execution date.
- DEGIRO: Go to Products → ETFs → Free ETFs. Select an eligible EUR ETF, set up a recurring order (minimum €50 recommended), and confirm.
- Interactive Brokers: From the Client Portal, select Transfer & Pay → Transfer Funds to deposit. Then use Trade → Recurring Investment to automate ETF purchases (minimums vary, usually €10–€50).
Why it matters: Regular, automated investing (e.g., monthly) is proven to smooth out market volatility and build long-term wealth for your child via euro cost averaging.
What can go wrong: Forgetting to set up a recurring plan means you might miss months of compounding. Always confirm your standing order is active and visible in the app/portal.
Pro Tip
If you’re not sure how much to invest, start with €25–€50/month. Even small contributions compound substantially over 18 years, as explained in our compound interest guide.
Step 6: Select the Best EUR-Based ETFs for Child Investment
What to do: Choose simple, globally diversified, EUR-denominated accumulating ETFs. Here are three top picks for European custody accounts:
- iShares Core MSCI World UCITS ETF (Acc) – EUR (ISIN: IE00B4L5Y983)
Covers 1,500+ developed market stocks; total expense ratio (TER): 0.20% p.a. - Xtrackers MSCI Emerging Markets UCITS ETF (Acc) – EUR (ISIN: IE00BTJRMP35)
Broad emerging market exposure; TER: 0.18% p.a. - Vanguard FTSE All-World UCITS ETF (Acc) – EUR (ISIN: IE00BK5BQT80)
Global developed + emerging markets; TER: 0.22% p.a.
All three are available commission-free as savings plans on Trade Republic and at low cost on DEGIRO and Interactive Brokers.
Why it matters: Accumulating ETFs automatically reinvest dividends, maximizing compounding for your child and reducing tax paperwork. EUR-denominated funds avoid currency conversion fees.
What can go wrong: Choosing distributing ETFs can create annual tax filings for minors in some countries. Avoid US-domiciled funds for European accounts due to estate tax risks and lack of PRIIPs compliance.
Pro Tip
Stick with accumulating, EUR-based UCITS ETFs for maximum simplicity and regulatory protection. For more platform-specific ETF options, see our European ETF broker guide.
Step 7: Know the Legal and Tax Rules for Minors in Your Country
What to do: Research your country’s tax-free allowances, gifting rules, and what happens when your child turns 18. Here are the main points for key EU countries:
- Germany: Annual tax-free capital gains allowance (Sparer-Pauschbetrag) for children: €1,000 (2024). Parents must file a child’s tax return if income exceeds this. Account control passes to the child at 18.
- Netherlands: Child investment accounts are taxed as part of the parent’s assets until age 18. Annual gift tax exemptions apply.
- France: Junior accounts (“PEA Jeune”) have unique tax treatment. Parental management ends at 18 or upon marriage.
- Spain & Italy: Tax rules vary; consult local authorities for up-to-date thresholds and reporting obligations.
Why it matters: Failing to declare investment income in your child’s name can result in fines or back taxes. The rules also affect how much you can contribute or gift each year without triggering taxes.
What can go wrong: Exceeding annual tax-free allowances or not updating account ownership when your child turns 18 can cause legal issues or tax penalties.
Checklist: Opening a Custody Account for Your Child in Europe
- ✔ Confirm broker supports junior/custody accounts in your country
- ✔ Gather all required documents (see Step 3)
- ✔ Complete the online application and video KYC
- ✔ Fund the account from your linked bank account
- ✔ Set up a recurring EUR savings plan into an accumulating ETF
- ✔ Track contributions and returns annually; file tax forms if needed
- ✔ Update account status when your child turns 18
Cost Example: Investing €50/month for 18 Years
Scenario: You invest €50/month in an accumulating ETF with an average annual return of 6% (net of fees) for 18 years.
Total invested: €10,800
Projected value at age 18: ~€17,500
Core fees (Trade Republic): €0 for savings plan + 0.20% ETF TER (~€35/year on €17,500 at the end)
Core fees (DEGIRO): ~€2/year for eligible free ETF + 0.18–0.22% TER
Core fees (Interactive Brokers): €0–€3/trade, but savings plans may require manual setup
Common Mistakes When Opening a Child Custody Account
- Applying with incomplete or mismatched documents (names, addresses, translations)
- Choosing distributing ETFs and triggering unnecessary tax filings
- Forgetting to update the account when your child turns 18
- Ignoring local tax rules for minors, risking fines
- Not automating contributions, missing out on compounding
Next Steps
- Review current broker offerings in your country for junior accounts
- Consider a diversified, EUR-based ETF for your child’s portfolio
- Read our detailed broker comparison for more platform specifics
- Check out strategies for automated, stress-free investing on major European platforms
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.