Before You Start
- Basic understanding of ETF investing and DEGIRO’s interface
- Active DEGIRO account (fully verified and funded in EUR)
- Knowledge of your country’s tax rules regarding investment income
- Access to a device with an internet connection (desktop preferred for full feature access)
- List of your current holdings (if you already have a portfolio)
Time needed: 60–90 minutes (including research and execution)
What you'll need: DEGIRO account, access to your tax ID, spreadsheet or notepad for calculations
Optimizing your DEGIRO portfolio isn’t just about picking the right ETFs—it’s about minimizing fees, reducing tax drag, and streamlining your reinvestment process. This actionable guide will walk you through concrete steps to optimize DEGIRO for lower costs and better EUR-denominated returns, using real platform features and current European options. If you want to compare DEGIRO with other brokers, see our comprehensive broker comparison for 2026.
Step 1: Choose the Right EUR-Denominated ETFs from the Free Core Selection
What to do: On DEGIRO, navigate to Products → ETFs, then filter for EUR-denominated ETFs that are part of the “Core Selection.” Download the latest Core Selection PDF from DEGIRO’s official documentation (updated quarterly).
- Use the “Currency” filter to select only EUR ETFs.
- Check the “Core Selection” (often labelled “Free ETF” or similar).
- Examples (as of 2026):
- Vanguard FTSE All-World UCITS ETF (EUR) – ISIN: IE00B3RBWM25
- iShares Core MSCI World UCITS ETF EUR (Acc) – ISIN: IE00B4L5Y983
- Xtrackers MSCI Emerging Markets UCITS ETF 1C (EUR) – ISIN: IE00BTJRMP35
Why it matters: Core Selection ETFs can be bought and sold once per month with zero commission (excluding a small €1 handling fee per trade and any currency conversion if not in EUR). Sticking to EUR-denominated ETFs avoids FX fees, which can quietly erode your returns.
What can go wrong: If you buy or sell the same ETF more than once per month, or trade outside the Core Selection, you’ll incur standard trading fees. Also, buying USD or GBP ETFs subjects you to a 0.25% FX conversion fee.
Pro Tip
Always double-check the ISIN of the ETF before trading, as some funds have multiple currency classes. Choose the EUR version to avoid unnecessary FX fees.
Step 2: Minimize Trading and FX Fees by Consolidating Orders
What to do: Plan your purchases to align with the once-per-month free trade rule for Core Selection ETFs. For non-Core ETFs or stocks, batch your transactions to reduce the number of trades.
- Use a spreadsheet to schedule your monthly ETF purchases.
- If you must buy non-EUR ETFs, consider converting a lump sum of EUR to USD in one go (Menu → Deposit/Withdraw → Currency conversion) to minimize repeated FX charges.
Why it matters: DEGIRO’s commission structure is extremely low—but frequent, small trades or unnecessary currency conversions will add up over time. For example, buying €1,000 of a USD ETF incurs a €2.50 FX fee (0.25%). If you trade monthly, that’s €30/year lost to FX alone.
What can go wrong: Accidentally exceeding the one free trade per ETF per month will trigger the standard €2 transaction fee. Small, frequent conversions or trades compound costs and reduce your net returns.
Pro Tip
If you plan to automate your investments, see our step-by-step automation guide for DEGIRO to avoid unnecessary manual trades and fees.
Step 3: Automate Dividend Reinvestment for Compound Growth
What to do: DEGIRO does not offer automatic dividend reinvestment (DRIP). Instead, manually reinvest dividends into your existing Core ETFs on your scheduled free-trade day each month.
- Monitor your “Cash Funds” section for incoming dividends.
- On your chosen monthly date, use available cash to buy more shares of your main ETF (within the Core Selection, in EUR).
Why it matters: Reinvesting dividends instead of letting them sit as idle cash is crucial for compounding returns. Manual reinvestment ensures you stay within the free-trade rules and avoid hidden fees.
What can go wrong: Forgetting to reinvest means lost compounding. Buying outside the Core Selection, or reinvesting too frequently, incurs unnecessary commission costs. For a deeper explanation of reinvestment costs in Europe, see our guide on avoiding hidden fees when reinvesting dividends.
Pro Tip
Choose accumulating (Acc) ETFs where possible, such as iShares Core MSCI World UCITS ETF EUR (Acc), to avoid manual reinvestment and minimize tax paperwork in some countries.
Step 4: Set Your Tax Residency and Withholding Preferences Correctly
What to do: In DEGIRO, go to Profile → Personal Details → Tax Information. Ensure your country of tax residency is correct and your Tax ID is up to date. For countries like Germany, France, or the Netherlands, verify if you need to upload a tax residency certificate for reduced withholding on US dividends (W-8BEN equivalent for non-US residents).
- Check if your country has a double taxation treaty with the US or Ireland (for Irish-domiciled ETFs).
- For Dutch residents: DEGIRO will automatically apply the correct withholding rate, but you must declare foreign income in your annual tax return.
- For German and French residents: You may need to apply for a “Freistellungsauftrag” (tax exemption order) or similar to maximize your tax-free allowance.
Why it matters: Incorrect tax settings can result in excess withholding tax on dividends, which is often non-recoverable. For example, US-domiciled ETFs may withhold 30% tax, while Irish-domiciled ETFs (like the Vanguard FTSE All-World UCITS ETF) typically withhold only 15% due to EU treaties.
What can go wrong: Failure to declare your correct residency can lead to double taxation, or even account restrictions. Not setting up a “Freistellungsauftrag” in Germany means all your dividends are taxed from the first euro.
Pro Tip
Prefer Irish-domiciled ETFs for global equity exposure, as they usually offer the lowest total withholding tax for European investors.
Step 5: Monitor Portfolio Fees, Performance, and Allocation Regularly
What to do: Use DEGIRO’s “Portfolio” tab to track your holdings, and export transaction history quarterly for review. Use a free tool like Portfolio Performance or a spreadsheet to monitor:
- Total fees paid (trading, FX, handling)
- ETF ongoing charges (TER, shown in ETF factsheets)
- Allocation drift (e.g., if stocks outperform bonds, your stock allocation may creep up)
Why it matters: Regular reviews help you catch creeping costs and keep your portfolio aligned with your risk profile. For example, if you notice you’re paying more than €10/year in trading fees, you may need to consolidate trades or switch ETFs.
What can go wrong: Ignoring fee reports or allocation drift can lead to higher costs and a portfolio that no longer matches your goals.
Pro Tip
Compare your annual fee total to other brokers. If your trading style changes, see our broker comparison for frequent ETF trading.
Common Mistakes When Optimizing Your DEGIRO Portfolio
- Trading outside the Core Selection: Accidentally buying non-core ETFs or making multiple trades per month, triggering fees.
- Ignoring currency risk: Buying USD or GBP ETFs without considering FX fees and currency risk.
- Letting cash sit idle: Not reinvesting dividends, missing out on compound growth.
- Poor tax setup: Failing to enter correct residency info or missing out on tax allowances.
- Neglecting regular reviews: Allowing costs or allocation to drift unnoticed.
Next Steps
- Set a monthly reminder to review your DEGIRO portfolio and reinvest dividends.
- Download the latest Core Selection list every quarter and ensure your ETFs remain eligible for free trades.
- Review your tax settings annually, especially if you move countries or your tax situation changes.
- Consider automating your investments—see our automation guide for DEGIRO for step-by-step instructions.
- For a broader brokerage comparison, check our 2026 fee and feature comparison.
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.