Before You Start
- Be at least 18 years old (legal age for opening investment accounts in most European countries)
- Have a valid EU/EEA passport or national ID
- Own a European bank account (SEPA supported)
- Prepare digital copies (PDF or JPG) of your ID and proof of address (recent utility bill or bank statement)
- Understand basic investment concepts: ETF, stock exchange, order types
Time needed: 30–60 minutes (excluding verification time)
What you'll need: Smartphone or computer, internet access, email address, European bank account, ID, proof of address
Ready to start investing in ETFs as a European resident in 2026? This guide will walk you through every step—from choosing a broker to making your first ETF purchase. We’ll use real examples from Trade Republic, DEGIRO, and Interactive Brokers, three of the most popular and accessible ETF platforms across Europe.
Step 1: Choose the Right Broker for Your Needs
What to do: Select a European-regulated broker that offers the ETFs you want, with low fees and strong investor protection.
- Trade Republic – Easy app, €1 flat order fee, free ETF savings plans, German regulation
- DEGIRO – Broad ETF selection, low fees, Dutch regulation
- Interactive Brokers – Advanced features, global access, Irish regulation for EU clients
Why this matters: Each platform has different fees, usability, and available ETFs. Picking the right broker saves you money and frustration. For example, Trade Republic is ideal for beginners who want simplicity, while Interactive Brokers is better for advanced users or those seeking non-EU ETFs.
What can go wrong: Choosing a broker not regulated in the EU/EEA may leave you without proper investor protection. Some brokers may not accept residents from your country, or may have hidden fees.
Pro Tip
Check if your chosen broker is a member of your country’s investor compensation scheme (e.g., up to €100,000 in Germany or €20,000 in Ireland).
Step 2: Register an Account Online
What to do: Sign up on your chosen broker’s website or app. Use your legal name and details exactly as they appear on your documents.
- Trade Republic: Download the app, tap “Open Account”, enter your email, phone number, and set a password.
- DEGIRO: Click “Open an Account” on their website, fill in your email, set a password, and follow the guided process.
- Interactive Brokers: Click “Open Account” on their website, select your country, and fill in personal details and tax information.
Why this matters: Accurate information is required for legal compliance and to avoid issues during verification or withdrawals.
What can go wrong: Typos or mismatched details will delay or block your verification. Using a nickname or incorrect address can cause problems later.
Pro Tip
Use an email address you check regularly—brokers send important notifications about trades, tax documents, and security alerts.
Step 3: Complete the KYC (Identity Verification) Process
What to do: Upload your ID and proof of address. Some brokers require a short video call or live selfie for identity confirmation.
- Trade Republic: Upload your passport or national ID, then record a short video selfie as instructed in the app.
- DEGIRO: Upload a scan of your ID and a recent utility bill or bank statement (dated within 3 months).
- Interactive Brokers: Upload ID, proof of address, and fill in your tax residency details (e.g., your Tax Identification Number).
Why this matters: The KYC (Know Your Customer) process is legally required to prevent fraud and money laundering. Your account will not be activated without it.
What can go wrong: Blurry or expired documents, or mismatched addresses, can lead to rejection. If your name or address has changed, update your documents before applying.
Pro Tip
Take photos in good lighting. If your proof of address is digital, download the PDF directly from your bank or utility provider for best quality.
Step 4: Link Your European Bank Account
What to do: Enter your IBAN (International Bank Account Number) to connect your bank account for deposits and withdrawals. Some brokers ask for a small “verification transfer” (e.g., €0.01) to confirm ownership.
- Trade Republic: Enter your IBAN in the app. They will prompt you to make a small SEPA transfer to activate it.
- DEGIRO: Enter your IBAN and make a verification transfer (usually €0.01–€0.10) from your bank account.
- Interactive Brokers: Add your bank account details in the “Funding” section and follow the instructions for verification.
Why this matters: Linking your bank ensures you can fund your account and withdraw your money. SEPA transfers are fast and usually free within the EU/EEA.
What can go wrong: Using someone else’s bank account or a non-SEPA account may lead to delays or rejection. Double-check your IBAN to avoid failed transfers.
Pro Tip
Always transfer from an account in your own name—joint accounts are usually accepted, but third-party transfers are not.
Step 5: Fund Your Account
What to do: Transfer money from your linked bank account to your broker. Most accept SEPA transfers in EUR, which clear within 1–2 business days.
- Trade Republic: Tap “Deposit”, copy your unique reference code, and make a SEPA transfer from your bank’s app.
- DEGIRO: Go to “Deposit/Withdraw Funds”, select your bank, and follow the SEPA transfer instructions.
- Interactive Brokers: Go to “Transfer & Pay” → “Transfer Funds”, select SEPA, and follow the steps for EUR deposit.
Why this matters: You can’t buy ETFs or set up savings plans until your account is funded. Using the correct reference code ensures your deposit is credited to your account quickly.
What can go wrong: Forgetting the reference code, sending from an unlinked account, or sending non-EUR currencies can delay or lose your deposit.
Pro Tip
For your first deposit, start with a small amount (e.g., €100) to ensure everything works before transferring larger sums.
Step 6: Search for and Select Your First ETF
What to do: Use the broker’s search function to find your chosen ETF. Most beginners start with broad, low-fee funds like the iShares Core MSCI World UCITS ETF (ISIN: IE00B4L5Y983) or Xtrackers MSCI Emerging Markets UCITS ETF (ISIN: IE00BTJRMP35).
- Trade Republic: Tap “Search”, enter the ETF name or ISIN (e.g., “IE00B4L5Y983”), select it from the results.
- DEGIRO: Use the search bar, enter the ETF name or ISIN, and click the correct listing.
- Interactive Brokers: Use the “Search” box, enter the ISIN, and select the ETF from the available exchanges.
Why this matters: ISIN codes are unique to each ETF and prevent confusion with similarly-named products. Always double-check the ISIN before buying.
What can go wrong: Accidentally picking the wrong ETF (e.g., accumulating vs. distributing, or a different currency hedging) can derail your investment plan.
Pro Tip
Use justETF to research and compare ETFs before purchasing. Filter by TER (Total Expense Ratio), fund size, and domicile.
Step 7: Place Your First ETF Order
What to do: Decide how much to invest, then place a buy order. Most brokers offer “market orders” (buy at current price) or “limit orders” (buy if price hits a target).
- Trade Republic: Tap “Buy”, enter the EUR amount (e.g., €100), choose market or limit order, and confirm.
- DEGIRO: Click “Buy”, enter the number of ETF units or EUR amount, select order type, and confirm.
- Interactive Brokers: Click “Buy”, enter quantity or amount, choose order type, and review before submitting.
Expected outcome: Within seconds (during market hours), your order should execute. You’ll see your new ETF holding in your portfolio, e.g., “iShares Core MSCI World UCITS ETF – Value: €98.50” (after fees).
Why this matters: Understanding order types prevents mistakes. Market orders are fast but can be slightly more expensive if the price moves quickly. Limit orders give you price control but may not execute immediately.
What can go wrong: Placing a large market order outside trading hours may result in unexpected prices. Accidentally buying the wrong ETF or entering the wrong amount can lock up your funds.
Pro Tip
If starting small, use market orders for simplicity. For larger amounts (>€1,000), consider limit orders to avoid price swings.
Step 8: Set Up an ETF Savings Plan (Optional, but Recommended)
What to do: Automate your investing by setting up a monthly savings plan (Sparplan). Most brokers allow you to invest a fixed amount (e.g., €50/month) in your chosen ETF.
- Trade Republic: Tap “Savings Plan”, select your ETF, enter amount (min. €1), choose schedule (e.g., monthly), and confirm.
- DEGIRO: Use the “Recurring Investment” feature (available in select countries), set amount and frequency.
- Interactive Brokers: Go to “Recurring Investments”, choose your ETF, set amount and interval.
Why this matters: Savings plans automate disciplined investing and take advantage of euro-cost averaging, reducing the impact of short-term market swings.
What can go wrong: Not maintaining sufficient balance in your broker account can cause your savings plan to fail. Double-check your scheduled dates and amounts.
Pro Tip
Start with a manageable monthly amount (e.g., €50). You can adjust or pause your savings plan anytime without penalty on most platforms.
Step 9: Understand Fees and Tax Implications
What to do: Review your broker’s fee schedule and learn about ETF taxation in your country. Key fees include:
- Trade Republic: €1 per trade, free ETF savings plans, no custody fees
- DEGIRO: €2–€3 per ETF trade, free core ETFs (one trade/month), no inactivity fees
- Interactive Brokers: €1–€4 per trade (tiered), no inactivity fees, currency conversion fees if applicable
Why this matters: High fees eat into your returns. Knowing your tax obligations (e.g., capital gains tax, dividend withholding tax) avoids surprises at tax time.
What can go wrong: Ignoring small fees can cost you hundreds of euros over years. Not declaring investment income can result in fines.
Pro Tip
Keep a spreadsheet or use your broker’s export tools to track all trades for tax reporting. Check your local tax authority’s website for ETF tax rules in your country (e.g., German Finanzamt).
Common Mistakes
- Using incorrect or expired documents in the verification process
- Sending deposits from an unlinked bank account
- Confusing similar ETF names or ISINs and buying the wrong fund
- Forgetting to check fees and minimums before trading
- Not reading broker communications about regulatory or tax changes
- Neglecting to set up two-factor authentication (2FA) for account security
Next Steps
- Monitor your portfolio regularly via your broker’s app or website
- Continue learning about ETFs, asset allocation, and risk management
- Consider expanding to other asset classes (e.g., bonds, REITs) as you gain experience
- Review your investment plan annually and adjust your monthly savings if your financial situation changes
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.