How to Rebalance Your Portfolio on Trade Republic and DEGIRO: A Step-by-Step Guide

Regular portfolio rebalancing is essential for keeping your investments aligned with your risk tolerance and financial goals. In this in-depth guide, you'll learn exactly how to rebalance your portfolio on Trade Republic and DEGIRO, using real EUR-based ETF examples, with clear, actionable steps and troubleshooting tips for 2026. Whether you invest through Trade Republic or DEGIRO, this guide will help you minimize costs and avoid common mistakes.

Step 1: Define Your Target Allocation

What to do: Decide how you want your portfolio split between asset classes (e.g., stocks vs. bonds) and regions. For example, a typical EUR-based diversified ETF portfolio might look like this:

• 70% in iShares Core MSCI World UCITS ETF (EUNL.DE) – Global developed equities
• 20% in Xtrackers MSCI Emerging Markets UCITS ETF (XMME.DE) – Emerging market equities
• 10% in iShares Core € Govt Bond UCITS ETF (IEGA.DE) – Eurozone government bonds

Why it matters: Your target allocation reflects your risk profile and goals. Rebalancing brings your actual portfolio back in line with this plan, preventing unwanted risk creep.

What can go wrong: If you skip this step or choose arbitrary targets, you'll rebalance towards the wrong mix, potentially increasing your risk or missing out on returns.

Step 2: Calculate Your Current Portfolio Allocation

What to do: Log in to your Trade Republic or DEGIRO account and note the current market value (in EUR) of each ETF or asset class. Add them up to get your total portfolio value.

• Example: EUNL.DE = €7,500, XMME.DE = €2,100, IEGA.DE = €1,400
• Total portfolio = €11,000

Now, calculate the percentage of each holding:

• EUNL.DE: (€7,500 / €11,000) × 100 = 68.2%
• XMME.DE: (€2,100 / €11,000) × 100 = 19.1%
• IEGA.DE: (€1,400 / €11,000) × 100 = 12.7%

Why it matters: You need to know where you stand to decide what to buy or sell.

What can go wrong: Using outdated prices or forgetting to include cash balances will throw off your calculations.

Step 3: Determine What to Buy or Sell

What to do: Compare your actual allocation to your target. Calculate how much (in EUR) you need to buy or sell to reach your targets.

• Example: Target for EUNL.DE is 70% of €11,000 = €7,700; you currently have €7,500, so buy €200 more.
• Repeat for each asset. If you’re above target, consider selling or pausing new purchases to let other assets catch up.

Why it matters: This step tells you exactly what trades to make.

What can go wrong: Ignoring transaction costs or taxes can eat into returns. Always check minimum trade sizes (e.g., €10 on Trade Republic, €1 on DEGIRO for some ETFs), and try to minimize selling to avoid triggering capital gains tax.

Step 4: Execute Trades on Trade Republic

What to do:

1. Open the Trade Republic app.
2. Tap Portfolio to see your holdings and their values.
3. To buy: Tap Search (magnifying glass), enter the ETF (e.g., EUNL.DE), select it, tap Buy, enter the EUR amount (minimum €10), and confirm.
4. To sell: Tap the ETF in your portfolio, tap Sell, enter the EUR amount or number of shares, and confirm.
5. If you use a Savings Plan: Go to Portfolio → Savings Plan, select the ETF, and adjust the monthly amount as needed to favor underweight assets.

Expected outcome: You should now see your new ETF purchases or sales reflected in your Trade Republic portfolio within seconds to minutes. The value of each holding should move closer to your target allocation.

Why it matters: Trade execution is where your rebalancing plan becomes reality. Trade Republic charges a flat €1 fee per order (as of 2026), so bundle trades if possible.

What can go wrong: Placing trades outside market hours may result in price slippage. Double-check order details before confirming.

Step 5: Execute Trades on DEGIRO

What to do:

1. Log in to your DEGIRO account via web or app.
2. Click Portfolio to review your holdings.
3. To buy: Use the Search bar, enter the ETF ticker (e.g., EUNL), select the correct EUR listing, click Buy, enter the number of shares or EUR amount, and confirm.
4. To sell: Select the ETF in your portfolio, click Sell, enter the number of shares, and confirm.
5. Remember: DEGIRO offers a “core selection” of free ETFs (one free trade per ETF per calendar month); check if your ETFs qualify on their official list to minimize fees.

Expected outcome: Your DEGIRO portfolio should update almost instantly with the new trades. Check the Transactions tab for confirmations.

Why it matters: DEGIRO charges low fees, but not all ETFs are free to trade. Always check the fee schedule and avoid unnecessary trades.

What can go wrong: Accidentally trading the wrong ETF class (e.g., USD vs. EUR) or incurring FX fees. Always use EUR-denominated ETFs for simplicity and to avoid currency conversion costs.

Step 6: Track Progress and Document Your Rebalancing

What to do: After executing your trades, update your spreadsheet or tracking tool. Confirm your new allocation percentages and check if they match your targets within a small margin (±1%).

Keep a record of:

• Date of rebalancing
• Market values before and after
• Trades executed and their costs

Why it matters: Documentation helps you stick to your plan, spot errors, and provide evidence for tax reporting if needed.

What can go wrong: Failing to update your records leads to confusion next time you rebalance or file taxes.

Common Mistakes When Rebalancing on Trade Republic and DEGIRO

• Trading the wrong ETF ticker: Always double-check the ISIN and EUR currency to avoid buying an unintended fund.
• Overtrading: Rebalancing too frequently increases fees and possible tax liabilities. Most investors only need to rebalance 1–2 times per year.
• Ignoring minimum order sizes: Both platforms have minimums; plan your trades accordingly.
• Forgetting about cash drag: If you hold uninvested cash, include it in your allocation calculations.
• Not considering taxes: Selling appreciated ETFs may trigger capital gains tax. Try to rebalance with new contributions when possible.
• Missing platform fee changes: Always check the latest fee schedules on Trade Republic and DEGIRO before making trades.

Next Steps

• Consider automating regular contributions using savings plans on Trade Republic or DEGIRO to reduce the need for manual rebalancing.
• Review your portfolio allocations at least annually or after major market moves.
• Read our guide on How to Use Dollar-Cost Averaging with European Brokers for Stress-Free Investing to combine rebalancing with disciplined investing.
• If you’re still comparing brokers, see our in-depth comparison: Interactive Brokers vs. Trade Republic vs. DEGIRO: 2026 Update for European Investors.

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.