Step-by-Step: How to Rebalance Your ETF Portfolio Automatically With Trade Republic or DEGIRO

Rebalancing your ETF portfolio automatically is a practical way to keep your investments aligned with your long-term goals — without the hassle of constant manual adjustments. In this guide, I’ll show you, step by step, how to set up auto-rebalancing (or as close as possible) using Trade Republic and DEGIRO, two leading European brokers. We’ll cover eligibility, platform-specific instructions, costs, tax considerations, and when automation makes sense.

If you’re new to ETF investing, you might want to check our Complete Beginner’s Guide to European ETFs: How to Start Investing in 2026 first, but this tutorial is designed to be fully self-contained.

Step 1: Understand What “Automatic Rebalancing” Means (and Doesn’t)

What to do: Get clear on what “rebalancing automatically” actually looks like with European brokers, as the process differs from US robo-advisors.

• Why it matters: Many investors expect brokers to automatically buy and sell to maintain exact allocations. However, most European brokers (including Trade Republic and DEGIRO) do not offer full automatic rebalancing, but they do let you automate regular purchases according to fixed allocations—this is called “auto-investing” or “savings plans.”
• What can go wrong: If you expect your broker to sell overweight ETFs automatically (true rebalancing), you may be disappointed. Instead, these platforms help you rebalance with new contributions—a low-cost, tax-efficient approach for most investors.

Step 2: Set Your Target Portfolio Allocation

What to do: Decide what percentage of your portfolio you want in each ETF. For example:

• 70% in iShares Core MSCI World UCITS ETF (EUNL)
• 30% in Xtrackers MSCI Emerging Markets UCITS ETF (XMME)

• Why it matters: Clear targets are essential for any type of rebalancing. Your broker’s automation tools will follow these percentages for every scheduled investment.
• What can go wrong: If you set allocations that are hard to match with your contribution amount (e.g., €100/month split 73.5%/26.5%), rounding may cause small drifts. Pick simple ratios that divide evenly into your contribution.

Step 3: Set Up Automated ETF Savings Plans (Trade Republic)

What to do: Configure savings plans for each ETF in the Trade Republic app, matching your target allocation.

1. Open the Trade Republic app and log in.
2. Tap Portfolio → Savings Plans → New Savings Plan.
3. Search for your first ETF (e.g., EUNL).
4. Choose the amount to invest (e.g., €140/month for EUNL).
5. Select your schedule (monthly, bi-weekly, etc.) and start date.
6. Repeat for each ETF in your portfolio (e.g., €60/month for XMME).
7. Review your summary and confirm.

• Why it matters: This process ensures every month’s new investment goes in the right proportions, keeping your portfolio close to your target allocation over time.
• What can go wrong: If you adjust your total investment amount later, remember to update all plan amounts to keep your ratios correct.

Expected outcome: You should now see active savings plans for each ETF, with the correct amount scheduled for each. When the date arrives, Trade Republic will automatically buy the ETFs for you, commission-free for most savings plans.

Step 4: Set Up Automated ETF Investments (DEGIRO)

What to do: Automate regular ETF investments on DEGIRO, keeping in mind that DEGIRO does not currently support classic “savings plans” but offers recurring orders and a wide range of commission-free ETFs.

1. Log in to your DEGIRO account via desktop or app.
2. Search for your ETF (e.g., EUNL).
3. Check if it’s on the commission-free ETF list (to save fees).
4. Set a recurring reminder (outside the platform, e.g., calendar event) to place monthly buy orders.
5. Each month, buy the correct amount of each ETF (e.g., €140 of EUNL, €60 of XMME).

• Why it matters: While not fully automated, this method minimizes costs and lets you closely control your allocation. DEGIRO’s commission-free ETF list is updated regularly, so check eligibility each time.
• What can go wrong: Forgetting to place the order on schedule can lead to allocation drift. Also, only one commission-free trade per ETF per month is allowed—additional trades incur fees.

Expected outcome: After each monthly purchase, your DEGIRO portfolio should reflect your target allocation. Over time, your contributions will keep your allocation close, but you may need to rebalance manually once or twice a year.

Step 5: Monitor and Adjust for Drift

What to do: Review your portfolio allocation every 6–12 months. If your actual percentages stray more than 5% from your targets, consider a “manual rebalance” (buying more of the underweight ETF, or—less ideally—selling the overweight ETF).

• Why it matters: Automated investing with savings plans keeps you close to your target, but market movements can cause drift. Occasional manual tweaks ensure your risk level stays where you want it.
• What can go wrong: Selling ETFs to rebalance can trigger capital gains tax. In most cases, rebalancing by buying more of the underweight asset is more tax-efficient.

Eligibility, Costs, and Tax Caveats

• Eligibility: Trade Republic’s savings plans are available to most EU residents. DEGIRO’s recurring orders work for all, but true automation is limited.
• Costs: Trade Republic offers commission-free ETF savings plans for most popular ETFs. DEGIRO offers one commission-free trade per ETF per month from their list. Always check the latest terms.
• Taxes: In most European countries, selling ETFs to rebalance can trigger capital gains tax. Automated rebalancing with new contributions is tax-efficient. Dividends may also have withholding tax—see our guide to monthly dividend reinvestment for more.

Manual vs. Automatic Rebalancing: Pros and Cons

	Automatic (Savings Plans)	Manual
Effort	Low (after setup)	Medium/High
Precision	Good with regular contributions	Highest (can rebalance exactly)
Costs	Low (if using commission-free savings plans)	Varies (more trades = more fees)
Tax impact	Low (no selling required)	Possible capital gains on sales

Common Mistakes

• Assuming full automation: Most European brokers do not sell overweight assets automatically. You must monitor and manually rebalance if allocations drift too far.
• Ignoring minimum investment amounts: Some ETFs require minimum savings plan amounts (e.g., €10/month per ETF on Trade Republic).
• Overlooking fees: Not all ETFs are commission-free; always check the broker’s up-to-date lists.
• Forgetting to update allocations: If your income or investment goals change, remember to adjust your savings plan amounts.
• Triggering unnecessary taxes: Selling ETFs to rebalance can create a tax bill. Prefer rebalancing with new money.

Next Steps

• Check your broker’s latest ETF lists and savings plan terms before setting up automation.
• Review your allocation and rebalance thresholds at least once a year.
• Compare broker costs—see How to Find the Cheapest EUR Broker for Your ETF Investments in 2026 for a detailed breakdown.
• Consider consulting a tax advisor about the implications of rebalancing in your country.

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.