TradeRepublic savings plan stocks

How can you create a TradeRepublic savings plan? What are the advantages of a TradeRepublic savings plan? Eulerpool has the answers, showcasing strategies and a list of all stocks in the free savings plan from TradeRepublic.

TradeRepublic savings plan stocks

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Automated Investing. For several years now, many brokers have offered the option to set up a savings plan for stocks or ETFs. This involves regularly purchasing securities at a predetermined price. The advantage of savings plans is a low or even no order fee.

Even today, individual stock purchases are still very expensive with some brokers, which often makes it worthwhile to execute an order only starting from $1,000. With the new neo brokers, this has changed somewhat. Many offer very low commission fees and even the execution of savings plans is free.

To explain this with an example, let's assume that we want to create a TradeRepublic savings plan for Apple stock. First, we determine when the TradeRepublic savings plan should be executed. Here, we are somewhat limited because most brokers only offer the beginning or the middle of the month. If you want to invest in larger intervals, you can also choose quarterly.

Then one selects the TradeRepublic savings plan amount. In general, it starts at $25, but this amount is also often reduced. This amount is now invested in Apple stocks, with the broker placing a portion of a whole share into the portfolio. This means that at a price of $150, one receives 0.166 shares worth $25.

Easy way for private investors. For many beginners, it is a big problem to know when to enter. Is the stock now too expensive or worth buying? This question is preceded by a TradeRepublic savings plan, because the same amount is invested monthly, regardless of where the stock is at that time. Therefore, one invests in both good and bad times and eventually obtains an average entry price.

For many private investors, a TradeRepublic savings plan serves as a psychological support, as it removes the risk of entering at a very bad time. Many private investors put pressure on themselves and stress out when stock prices fall. Many also become very nervous when they see a loss in their portfolio shortly after making a large purchase.

The TradeRepublic savings plan ensures that you do not become too nervous during bad times, but also benefits from regular investing in good entry opportunities without having to determine whether the lowest point will be reached now or only in a few weeks.

Positive points outweigh when investing for the long term. When considering the advantages and disadvantages, one must differentiate between whether one wants to invest a monthly portion of their income or a large one-time amount. If one wants to invest a monthly portion of their income, they can either save over several months to make a large single purchase during possible market crashes. Otherwise, they can invest it directly through TradeRepublic savings plan.

Statistically speaking, now is always the best time to invest if one assumes that prices will rise in the long term. Many individual investors often wait for a crash to make a purchase, but they miss out on all the gains and dividends beforehand. For one, they often end up buying at a significantly higher price because it is nearly impossible to time the absolute lowest point, and also because mindset plays a significant role in investing during market declines.

So the TradeRepublic savings plan not only provides psychological support, but also significantly more time, as one does not have to deal with when the right time is for an individual purchase.

Now let's talk about the disadvantages. These are mainly caused by the limited selection of stocks available for savings plans at Broker TradeRepublic. Not every stock is eligible for a savings plan, usually because the company is not big enough. However, the selection is still very extensive and all major and medium-sized companies can be included in a TradeRepublic savings plan without any issues. Additionally, the offering is continuously expanding.

As mentioned above, a certain point in time is predetermined. Therefore, one cannot invest at any time when using a TradeRepublic savings plan. Additionally, the entire strategy is only worthwhile if one invests in the long term.

TradeRepublic ETF savings plan: Invest in an ETF on broad indices and thus benefit from the overall market performance. It offers extensive diversification across many countries and sectors. This is a long-term investment type that aims to regularly invest in the capital market.

Long-term TradeRepublic savings plan: Regularly and long-term invest in a specific selection of stocks. Here, no changes are made over longer periods of time and one benefits from an average entry price.

Alternating TradeRepublic savings plan: You can rotate the selection monthly or quarterly if you want to invest in more companies but the savings amount is not sufficient. For example, you could invest in one list of stocks every even month and in the other list every odd month.

TradeRepublic savings plan can also be used as an individual purchase: This point is of interest to many private investors who would like to buy individual stocks but do not have enough capital to, for example, buy a whole Amazon share (2,800$). In this case, one could set the TradeRepublic savings plan to 1,000$ and terminate it after execution. This way, you have Amazon as a separate position in your portfolio, but it is not overweighted if all other positions are also approximately 1,000$ in size.

Automated Investing. For several years now, many brokers have offered the option to set up a savings plan for stocks or ETFs. This involves regularly purchasing securities at a pre-determined price. The advantage of savings plans is a low or even no transaction fee.

Savings Plan Provider Comparison

Provider
Fees
Min. Amount
Stocks / ETFs
Comdirect
Execution on:
1. / 7. / 15. / 23.
1,5 % /
25 EUR
400 / 900
TradeRepublic
Execution on:
2. / 16.
Stocks / ETFs /
10 EUR
2.500 / 1.500
ScalableCapital
Execution on:
1. / 4. / 7. / 10. / 13. / 16. / 19. / 22. / 25.
Stocks / ETFs /
1 EUR
6.000 / 1.902
Consorsbank
Execution on:
1. / 15.
1,5 % /
10 EUR
580 / 794
ING
Execution on:
1. / 15.
1,75 % /
1 EUR
560 / 817

Start. Once you have opened a portfolio, you can immediately start setting up savings plans. To do this, select the "Search" option in the bar at the bottom of the screen.

Search securities. One searches for the respective stock or ETF they want to invest in. When you are on the stock page, scroll down a bit and find the button "Create Savings Plan".

Set parameters. First, you select the interval in which the TradeRepublic savings plan should be executed. At TradeRepublic, you can choose twice a month, monthly, or quarterly. With each of these options, the start date will then open. Here, you can choose between the 2nd or the 16th of a month. After this step, you already select the amount, which must be at least $10.

Complete TradeRepublic savings plan. After setting the data, you will receive an overview of the settings and can then click on "Create savings plan now". All savings plans can then be found in the "Savings plans" field and managed there.