Regular Investing in ETFs: How It Works
Investing with automatic regular contributions, instead of a single lump sum.
A regular investing plan involves periodic contributions of a fixed amount (e.g. monthly) into one or more ETFs, instead of a single lump-sum investment.
How it works in practice
You set an amount and a frequency (e.g. €200 a month), and the broker automatically buys the chosen ETF at each interval, regardless of the market price at that moment.
The benefit of pound-cost averaging
By investing the same amount at regular intervals, you automatically buy more units when the price is low and fewer when it's high — an effect known as pound-cost (or dollar-cost) averaging, which tends to smooth the purchase price over time.
What to consider when choosing a broker
For regular investing, ongoing costs matter most: a fixed commission per order or a custody fee weighs proportionally more on small, frequent contributions than it would on a single large deposit.