Before You Start
- Be a resident of a European Economic Area (EEA) country and at least 18 years old
- Have a valid passport or national ID for identity verification
- Own a European bank account (SEPA-enabled) for EUR transfers
- Have access to a smartphone or computer with reliable internet
- Be comfortable with basic banking and online registration processes
Time needed: 30–60 minutes (including waiting for account approval)
What you'll need: €500 minimum, access to Trade Republic or DEGIRO, your ID, and your bank details
Learning how to invest in ETFs in Europe is an accessible and effective way to start building wealth—even with a small sum like €500. This tutorial will guide you, step-by-step, through your first ETF purchase on platforms available to European residents, specifically Trade Republic and DEGIRO. We’ll cover account setup, EUR deposits, choosing your first ETF, making your first buy, and the most common mistakes to avoid.
As we covered in our complete guide to building a bulletproof ETF portfolio in Europe, starting small and building good habits early is key. This article zooms in on the very first, practical steps—so you can confidently invest your first €500 and avoid rookie errors.
Step 1: Choose Your Broker (Trade Republic or DEGIRO)
What to do: Decide whether you want to use Trade Republic or DEGIRO for your first ETF investment. Both are regulated, beginner-friendly, and available to most Europeans.
- Trade Republic: App-first, ultra-low fee (€1 flat commission per trade; 0% for savings plans). Simple interface. EUR-only accounts.
- DEGIRO: Web and app. Low ETF commissions (from €2 + 0.03% per trade, many commission-free ETFs monthly). Supports more advanced order types.
Why it matters: Your broker determines your fees, available ETFs, and the ease of buying/selling. Both brokers offer access to the most popular UCITS ETFs and are trusted by hundreds of thousands of Europeans.
What can go wrong: Picking a broker that doesn’t support your country or your preferred funding method. Always check eligibility and supported countries on the broker’s official FAQ or help center before proceeding.
Pro Tip
If you plan to automate monthly investing (e.g., via a savings plan), Trade Republic is often simpler and cheaper for beginners. If you want broader ETF selection or more order control, DEGIRO is a strong choice.
Step 2: Open and Verify Your Account
What to do: Register for an account using your real name, email, and phone number. Complete the KYC (Know Your Customer) process by uploading your ID and, where required, a selfie or video call.
- Trade Republic: Download the app (iOS/Android), tap “Open Account,” follow prompts, scan your ID, and complete video verification. Typically approved within 1–2 business days.
- DEGIRO: Register online, fill in your details, upload ID, and confirm your email. You may also need to provide a proof of address (utility bill or bank statement).
Why it matters: EU regulation requires identity verification to prevent fraud and comply with anti-money laundering laws. Your account is not active until verified.
What can go wrong: Blurry photos, expired ID, or mismatched information can delay or block approval. Always double-check your details and use a well-lit photo for ID scans.
Pro Tip
Have your passport or national ID and a recent utility bill or bank statement ready before starting the process. This speeds up verification.
Step 3: Deposit EUR into Your Broker Account
What to do: Fund your account with at least €500 via SEPA transfer from your European bank account.
- Trade Republic: In the app, tap “Account” → “Deposit,” copy your unique IBAN, and transfer funds from your bank. Funds usually arrive within 1 business day.
- DEGIRO: Log in, click “Deposit/Withdraw,” select SEPA deposit, and follow instructions. Use a bank account in your own name (third-party transfers are rejected).
Why it matters: You can’t buy ETFs until your account is funded. SEPA transfers are the standard for EUR in the EEA and are usually free from your bank’s side.
What can go wrong: Depositing from a joint or business account, using the wrong reference, or sending from a non-EEA account may delay or block your deposit.
Pro Tip
Always double-check the IBAN and reference code before sending your first deposit. Some banks require you to authorize new payees for security.
Step 4: Choose Your First ETF (UCITS, VWCE or IWDA)
What to do: Select a beginner-friendly, diversified ETF. For most Europeans, a global equity ETF like Vanguard FTSE All-World UCITS ETF (VWCE) or iShares Core MSCI World UCITS ETF (IWDA) is ideal for a first purchase.
- VWCE (ISIN: IE00BK5BQT80): Tracks global developed and emerging markets. EUR-denominated, accumulating, domiciled in Ireland (tax-efficient for most Europeans).
- IWDA (ISIN: IE00B4L5Y983): Tracks developed markets only (excludes emerging). Also accumulating, Ireland-domiciled, EUR trading available.
Why it matters: UCITS ETFs are specifically designed for European investors, offering regulatory protections and tax efficiency. Broad global ETFs provide instant diversification, reducing risk compared to single-country or sector funds.
What can go wrong: Accidentally buying a non-UCITS ETF (which may not be available to retail investors in Europe), a distributing ETF if you want automatic reinvestment, or a fund not denominated in EUR (which adds currency risk and fees).
Pro Tip
Always check for “UCITS” in the ETF name and confirm the ISIN. If you’re unsure about ETF selection, see our review of the top world ETFs for Europeans.
Step 5: Search and Select Your ETF in the Platform
What to do: Use your broker’s search function to find your chosen ETF by name or ISIN.
- Trade Republic: Tap “Search” (magnifying glass), enter “VWCE” or the ISIN, select the ETF, and view details (price, chart, factsheet).
- DEGIRO: Use the search bar at the top, type “VWCE” or “IE00BK5BQT80,” click the ETF, and review its page (performance, costs, info).
Why it matters: Many ETFs have similar names but different currencies, accumulation policies, or domiciles. Searching by ISIN avoids mistakes.
What can go wrong: Accidentally buying a distributing version (“VWRL” instead of “VWCE”), a GBP or USD version, or a different ETF entirely. Double-check all details before proceeding.
Pro Tip
On DEGIRO, you can “star” an ETF to add it to your favorites for easy access later. On Trade Republic, tap the star icon for quick access.
Step 6: Place Your Buy Order
What to do: Enter the amount you want to invest (e.g., €500) and place your buy order.
- Trade Republic: On the ETF page, tap “Buy,” enter your amount (in €), select “Market Order” (executes at current price), and confirm. For recurring investment, choose “Savings Plan” and set frequency.
- DEGIRO: Click “Buy,” enter the number of shares (not € amount—check the current price), select “Market Order” (or “Limit” if you want price control), and confirm.
Why it matters: Market orders execute immediately at the best available price. Limit orders let you specify a maximum price but may not execute instantly.
What can go wrong: On DEGIRO, you must enter the number of shares, not an exact € amount. If you try to buy more than your balance allows (after fees), your order will be rejected. With market orders, prices can change slightly between order and execution.
Pro Tip
Check the ETF’s current price and estimate how many shares your €500 will buy (e.g., if VWCE is €110 per share in 2026, you can buy 4 shares for €440 + fees; the rest remains as cash). Always account for small leftover amounts due to whole-share purchases.
Step 7: Confirm the Purchase and Review Your Portfolio
What to do: Once your order executes (usually instantly during trading hours), check your portfolio to see your new ETF holding.
- Trade Republic: Tap “Portfolio” to see your ETF, current value, and performance graph.
- DEGIRO: Click “Portfolio” or “Holdings” to view your ETF, number of shares, and total value in EUR.
Expected outcome: You should now see your first ETF purchase confirmed, with the number of shares and total value (e.g., 4 shares of VWCE at €110 each = €440 invested, plus a small cash balance left over).
Why it matters: Reviewing your portfolio after each purchase helps you track progress and spot any errors immediately.
What can go wrong: If your order is “pending” for more than a few minutes during trading hours, check for errors (insufficient funds, market closed, etc.). Contact support if you’re unsure.
Pro Tip
Set a calendar reminder to check your portfolio monthly. This helps you build the habit of reviewing your investments without obsessing over daily changes.
Step 8: Understand Platform Fees (2026)
What to do: Review the latest fee structures for your broker so you know exactly what you’re paying.
- Trade Republic (2026): €1 flat fee per trade. Savings plans are 0% commission (no fee for recurring investments). No custody or inactivity fees. Currency conversion fee: 0.3% (not relevant for EUR-denominated ETFs).
- DEGIRO (2026): Most popular ETFs are commission-free once per month; otherwise, €2 + 0.03% per trade. No custody fee for basic account. Currency conversion: 0.25% (not relevant for EUR ETFs).
Why it matters: Fees, even small ones, eat into your long-term returns. Understanding them helps you optimize your investing strategy.
What can go wrong: Trading non-EUR ETFs or making frequent small trades can rack up unnecessary fees. Always check the latest Trade Republic fees or DEGIRO fees before trading.
Pro Tip
If you plan to add money monthly, use Trade Republic’s savings plan for €0 fees. On DEGIRO, look up their “core selection” of commission-free ETFs and buy those to minimize costs.
Common Mistakes When Investing Your First €500 in European ETFs
- Buying the wrong ETF: Always check for “UCITS” and the correct ISIN. Avoid non-European domiciled funds.
- Ignoring fees: Small, frequent trades or currency conversion can quietly erode returns. Stick to EUR-denominated, accumulating ETFs for simplicity.
- Trying to time the market: It’s tempting to wait for “the perfect moment,” but time in the market beats timing the market. Consider setting up a monthly investment plan instead. See our article: Why DCA is the preferred strategy for European ETF investors.
- Forgetting about taxes: While most UCITS ETFs are tax-efficient, you may still owe capital gains or dividend tax in your country. Always check local rules.
- Neglecting diversification: Don’t put your entire portfolio into a niche or sector ETF. Start broad—see our guide to building a diversified EUR ETF portfolio.
Next Steps: Building Good Investing Habits
Congratulations! You’ve taken your first step toward building wealth with ETFs. Here’s how to keep progressing:
- Automate your investing: Set up a monthly savings plan (Trade Republic) or schedule regular manual buys (DEGIRO).
- Keep learning: Explore broader strategies in our comprehensive ETF portfolio guide.
- Manage risk: Learn about practical ways to reduce portfolio risk as your balance grows.
- Compare strategies: See how ETFs compare to stocks for beginners in our dedicated analysis.
By starting with a diversified, EUR-based UCITS ETF and keeping fees low, you’re already ahead of most new investors. Remember: Consistency and patience are your best friends in investing. Review your progress periodically, keep costs minimal, and continue learning.
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.