Trade Republic Savings Plans

C

candyman

Registered User
Messages
182
Hi all,
Does anyone know if it is possible to create a savings plan on TR that invests into a combination of different stocks each month?
So far, I only seem to be able to select a single stock or ETF to invest in via a savings plan but would like to pick 5 stocks in a savings plan and invest 1k per month into those 5, each month. Has anyone done similar?

Thanks all.
 
You can't have one plan with five different stocks but you can have five different plans with one stock each.
 
I have 42 companies set up for investing twice a month on savings plans, many of them in the S&P 500 and of similar weighting to the percentage S&P 500 has them at. The saveback goes towards one stock, although it might be possible to spread that to a few, I'm not sure.
 
So have you got a savings plan setup for each company stock you are investing in, so 42 saving plans? how do you set a weighting if they are all separate savings plans. My assumption here is that a TR savings plan can only have one stock in it.
 
candyman said:
So have you got a savings plan setup for each company stock you are investing in, so 42 saving plans? how do you set a weighting if they are all separate savings plans. My assumption here is that a TR savings plan can only have one stock in it.
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42 separate savings plans, yes. So with Microsoft and Apple I have 8eur going in twice a month, 5eur into Amazon and Alphabet, 4eur into Meta, 2eur for some pharma stocks, 1eur twice a month for a good few. 1eur twice a month and saveback which is usually 15eur into Berkshire Hathaway.
There would be the 1eur cost of selling each. Not sure if holding costs.
 
How often does the average punter rebalance their portfolio, once a year? And how many stocks would be so far above their desired weight, say ten or so? At €1 per sale that's not so much.
 
Corola said:
At €1 per sale that's not so much.
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Depends on the figures involved and the frequency of trading. But a fixed cost of €1, rather than a marginal percentage like with US brokers, on selling might look insignificant but be significant in practice. Plus there may be holding costs?
 
The more salient point is that it's currently €1 per sale. The online brokers have a habit of offering cheap/free options initially that in a few years when you actually want to sell are more expensive.
 
dubliner8 said:
42 separate savings plans, yes.
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Have you considered Trading212 pies? You would have one plan with set weights for each stock, and you can set it up so each month your investment would go in to only buy the stocks furthest below their target weights.
 
Leaving aside the taxation issues of single stocks and CGT vs ETFs and exit tax, I think, from a buy/sell fees perspective, you are getting hit for say €1 each time you buy/sell an individual stock and you have 42 of them on the go, twice a month, so possibly €84 in fees p/m. If this is the case, you are better off just going into the S&P 500 itself and be charged €1 per buy/sell and get all the diversification you are trying to achieve by going into the single stocks.

Anyone agree or am I missing something.....
 
I don't think I am understanding this correctly - each trade (buy and sell) costs 1 euro on Trade republic,. For example, are you saying you buy 4 euro of Meta twice a month, losing essentially 25% immediately each time. You mean 4 shares into Meta surely ? Surely they dont let you trade for 1 euro
 
Rasputin said:
I don't think I am understanding this correctly - each trade (buy and sell) costs 1 euro on Trade republic
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Specifically inside their so called "Savings Plan" it is €0 to buy. It means the investment is automatically taken from your free cash on a regular basis.

What are the costs of a savings plan?

By using state-of-the-art technology and consistently automating processes, we achieve cost savings that we pass on directly to you, for example: - There are n
support.traderepublic.com
 
Caveat that of course nothing is ever really free - if you buy stocks in a foreign currency there is an FX charge.
 
Ok, thanks. Still seems kind of pointless with the bid and ask spread and sale fee. I'd say you are more likely to lose a few quid than gain a few pence.
 
The naming is terrible:

Trade Republic - it's not just for traders, buying and selling every month to make a quick buck. It's also for long-term investing (buy regularly, sell infrequently).

Savings Plan - it's not savings in the sense of putting money on deposit to earn interest, it's really Automated Stock Investing.

The comparison should be against other forms of equity investment, not against the guaranteed deposit return on your cash account.
 
Buying stocks outside these "savings plan" events incur a fee of 1eur as @Corola has said. @Rasputin Re bid and ask spread and sale fee are you referring to an actual nominal fee or a spread difference (difference between what one is quoted before and what the sale price was actually after ?) at the time of sale?

My intention is to follow the dollar cost averaging strategy, buy the market at regular intervals, have a diversified portfolio in terms of industries, that I wouldn't face many occasions where I have to sell stocks. But if I do I feel the saveback money from Trade Republic more than covers my costs there. I already bought and sold S&P 500 ETF because I didn't want to have to deal with 8 year deemed disposal etc, and Volksvagen after I saw the plans to close factories.
 
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