Trade Republic - Round up

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The Trade Republic Round up is a savings function that allows you to invest small amounts automatically.

Each time you make a payment with your Trade Republic card, the amount is rounded up to the next full euro and invested weekly in an ETF or share of your choice.

Depending on your preference, the round up can be operated without a multiplier or times 2, 3x, 5x, 10x.

Case study:

For example, you pay €12.34 at a grocery store with the Trade Republic Debit Card.

With a simple round-up, your cash account is debited with €13 and the difference of €0.66 goes into the round-up pot, where all round-ups from card payments are collected until the following week.

In the following week for the regular savings plan execution, the accumulated amount is then invested in the share or ETF of your choice.

With an active multiplier, the same purchase would have resulted in a savings amount of 2x - € 1.22, 3x € 1.98, 5x € 3.30, 10x € 6.60.

Fun fact:

If a payment is round, for example €2.00, it is rounded or multiplied by 1 whole euro. So a coffee at McDonald's Austria with 10x round up, which I treat myself to at most once a week (sometimes maybe twice), costs me €12.00 instead of €2.00. 🤪

My personal opinion:

I love the round up feature. Especially with the tenfold multiplier, it just adds up. High double-digit and small three-digit amounts are absolutely realistic, depending on how the cards are used.

Because daily spending and consumption seem to cost me more and sometimes much more (McDonald's, for example), I think more carefully about whether a purchase is really necessary and consume more consciously overall. At the same time, I'm getting used to a higher price level in the future, which helps me to manage money better in the long term.

Another small advantage is that the round up can be processed longer and more often than savings plans. I'm not sure, but I think the round up can even be edited on the day of execution. In any case, it can still be edited the day before, when savings plans can no longer be edited "long ago", and it can also be edited every week, whereas with savings plans it is only possible to create or adjust them every two weeks.

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Profit-Prophet@Profit-Prophet

7Mo

I can't say anything about shares. I usually just invest in an Etf, but I'm now thinking about doing it like you. Are you investing the saveback in the same share as the round up?

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Kate🦋@Iwamoto

@Profit-Prophet I neglect the saveback and just let it run into one of my ETFs. I simply don't get enough out of it, as the amount is also limited to a maximum of €15 and a savings plan is a prerequisite. You can get around this with the savings plan, for example by creating a savings plan on a share with execution in the future and then deleting the savings plan again after the saveback has been executed, but ultimately it's a maximum of €15 per month.

Tenbagger2024@Tenbagger2024

Doesn't it make more sense to invest in your racehorses with momentum instead of the negative position?
Just a question

@Tenbagger2024 It depends. For example, why they are down, whether this can be interpreted as an opportunity to smooth out the entry price and whether the stocks with momentum are heavily overvalued or not. Do you have a particular stock in mind?

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@Iwanowitsch
You are absolutely right. In the case of a stock like ASML or Elf Beauty, for example, I would now buy in a negative position. With Bayer, probably not.

Chrisse95@Chris_legt_an

I think you should only invest in individual stocks with the intention of "I think they are undervalued or I see a lot of long-term potential in the company" and not according to "how far am I in + or -?
But in general I think your round-up tactic is great!

András A.@Spinat

I am a bore, for me it is 1x $O