How to Reinvest Dividends Automatically With Trade Republic, DEGIRO, and Interactive Brokers

Automatic dividend reinvestment (DRIP) is a powerful way for European investors to boost returns by putting your dividends straight back to work. But how do you set it up with the most popular brokers in Europe—Trade Republic, DEGIRO, and Interactive Brokers—in 2026? This tutorial walks you through every step, with EUR-based examples, platform-specific instructions, and a clear view of what to expect.

Why Automatic Dividend Reinvestment Matters

Reinvesting dividends means every payout you receive buys more shares of the same asset—compounding your returns over time. Even small dividends can make a big difference over decades. But manual reinvestment is time-consuming and easy to forget. Automation solves this, but setup and options vary by broker and by asset.

Step 1: Check If Your Asset Supports Automatic Dividend Reinvestment

What to do: Before setting anything up, confirm that your chosen ETF or stock is eligible for auto-reinvest (sometimes called DRIP) on your broker’s platform.

• Trade Republic: Only “Accumulating” ETFs (look for “thesaurierend” in German) automatically reinvest dividends. There is no DRIP for individual stocks or distributing ETFs.
• DEGIRO: No direct DRIP service, but you can set up recurring ETF purchases to mimic reinvestment. Accumulating ETFs reinvest automatically at the fund level.
• Interactive Brokers: Offers DRIP for most US and some European stocks/ETFs. You must opt in for each eligible asset.

Why it matters: Not all brokers or assets allow automatic reinvestment. Some ETFs (with “Acc” or “thesaurierend” in their name) reinvest at the fund level, so you never see the dividend in your account. For stocks and distributing ETFs, you may need to set up a manual or semi-automatic solution.

What can go wrong: Attempting to set up DRIP on an ineligible asset wastes time and can cause confusion when dividends arrive as cash.

Step 2: Setting Up Dividend Reinvestment With Trade Republic

What to do: Trade Republic does not offer classic DRIP for individual stocks or distributing ETFs. Instead, you reinvest by using accumulating ETFs or by creating a savings plan (Sparplan) that uses your dividends to buy more shares.

1. Open the Trade Republic app and log in.
2. Tap Portfolio → Savings Plan (Sparplan).
3. Select your accumulating ETF (e.g., iShares Core MSCI World UCITS ETF Acc, ISIN: IE00B4L5Y983).
4. Set up a recurring monthly buy for an amount (e.g., €50).
5. If you want to reinvest dividends from other assets, manually adjust your savings plan amount after each payout.

Why it matters: Accumulating ETFs are the only true “automatic” option here. Savings plans help automate the process, but you still need to adjust the amount if you want to match exact dividend inflows.

What can go wrong: Choosing a distributing ETF or stock expecting auto-reinvest will result in cash dividends. If you forget to adjust your savings plan, you may under- or over-invest.

Expected outcome: After the next dividend, you should see no cash payout (for accumulating ETFs), or cash credited (for distributing assets) which you can then manually invest using your savings plan.

Step 3: Setting Up Dividend Reinvestment With DEGIRO

What to do: DEGIRO does not offer DRIP. Like Trade Republic, you must rely on accumulating ETFs or set up recurring ETF purchases to mimic reinvestment.

1. Log into your DEGIRO account (choose your country if redirected).
2. Navigate to your portfolio and check if your ETF is accumulating (e.g., Xtrackers MSCI Emerging Markets UCITS ETF 1C, ISIN: IE00BTJRMP35).
3. If it is, dividends are reinvested automatically at the fund level.
4. If you want to reinvest dividends from distributing assets, set a recurring buy order for the same ISIN. After each dividend payout, manually adjust the amount to match the cash received.

Why it matters: DEGIRO’s low fees make manual reinvestment practical, but it’s not truly automatic for stocks or distributing ETFs. You control the timing and amount, but must act after each dividend.

What can go wrong: Forgetting to reinvest means your dividends sit in cash, losing compounding potential. Buying fractional shares is not possible for all assets, so leftover cash may accumulate.

Expected outcome: With accumulating ETFs, you’ll see no dividend cash—just steady growth. With manual reinvestment, your next buy will use the dividend cash, though small remainders may be left due to whole-share limits.

Step 4: Setting Up Dividend Reinvestment With Interactive Brokers (IBKR)

What to do: IBKR offers true DRIP for eligible stocks and ETFs, including many European and US assets. You must opt in for each asset you want to auto-reinvest.

1. Log in to Interactive Brokers Client Portal.
2. Go to Settings → Account Settings.
3. Scroll to Dividend Reinvestment and click Edit.
4. Enable DRIP for all eligible securities, or select individual assets (e.g., Vanguard FTSE All-World UCITS ETF, ISIN: IE00B3RBWM25).
5. Save changes. Confirm that your chosen assets are marked as “Enrolled in DRIP”.

Why it matters: IBKR automatically reinvests dividends into additional shares (including fractional shares), maximizing compounding without manual intervention. You can fine-tune which assets participate.

What can go wrong: Not all securities are eligible. If your ETF/stock isn’t supported, dividends will arrive as cash. Also, DRIP is processed at the next market open after the payout, so reinvestment price may differ from the payout date price.

Expected outcome: After your next dividend, you should see new shares (including fractions) added to your account, with a transaction labeled as “Dividend Reinvestment.”

Step 5: Compare Fees and Platform Differences

For a deeper comparison of these brokers, see Interactive Brokers vs. DEGIRO vs. Trade Republic: 2026 ETF Investing Showdown.

Common Mistakes

• Confusing accumulating and distributing ETFs: Only accumulating ETFs reinvest inside the fund. Distributing ETFs pay cash, which must be reinvested manually unless your broker offers DRIP.
• Assuming DRIP works for all assets: Not all stocks/ETFs are eligible for DRIP, especially on IBKR. Always check eligibility before relying on automation.
• Overlooking fees: Small dividend amounts can be eaten up by transaction fees if you reinvest manually—especially on DEGIRO or Trade Republic outside of savings plans.
• Ignoring tax implications: Reinvested dividends may still be taxable, depending on your country. Track all reinvestments for accurate tax reporting.
• Forgetting to adjust manual plans: If you use savings plans or recurring buys to mimic DRIP, forgetting to update your amount after dividend payments can leave cash idle.

Next Steps

• Review your current holdings to identify which assets can be set to auto-reinvest dividends.
• Choose accumulating ETFs where possible for hands-off compounding.
• For stocks and distributing ETFs, consider if manual or semi-automatic reinvestment (via recurring buys) is worth the effort and fees.
• Track your first few dividend payouts and reinvestments to ensure everything is working as expected.
• Explore more about broker features and ETF selection in Interactive Brokers vs. Trade Republic vs. DEGIRO: 2026 App Features and User Experience Compared.

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.