Trade Republic
Key Data
- Trading Name: Trade Republic
- Legal Entity: Trade Republic Bank Gmbh
- Activities: Bank/Neobroker
- Location: Berlin, Germany
- Regulations: regulated Bank Institute in Germany/BaFin
- Key People: Christian Hecker (Founder)/Thomas Pischke (Founder)/Marco Cancellieri (Founder)/Andreas Torner (Managing Director)/Gernot Mittendorfer (Managing Director)
Trade Republic, a European investment platform and bank, offers diverse investment options, including stocks, ETFs, bonds, derivatives, and cryptocurrencies. It operates under the regulation of Germany’s Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank, ensuring a high standard of financial compliance and security.
Originally established as Neon Trading in 2015 in Munich, Trade Republic was developed with the support of Comdirect Bank. Since then, the company has shifted its headquarters to Berlin, Germany, reflecting its growth and evolution in the European financial sector.
Trade Republic has garnered a substantial customer base, now serving millions of users and managing billions in assets across 17 European nations.
The platform processes transactions through LS Exchange and collaborates with renowned certificate providers such as HSBC Trinkaus, Citibank, Société Générale, and UBS. Trade Republic earns commissions from these financial partners for transactions carried out, adding a revenue stream to its business model.
Offering
The platform offers a wide range of investment options, including savings plans for ETFs, stocks, and crypto. Trade Republic also provides 4% interest on cash balances, which is calculated daily and paid out monthly. The platform is available on iOS and Android devices, and requires users to have a European mobile number and a SEPA bank account.
Trade Republic offers four different financial instruments: Stocks (9,000+), ETFs (2,000+), Bonds (500+), Cryptos (50+), and Derivatives (10,000+). All of these assets are traded in EUR
in 2024 Trade Republic has unveiled a Visa debit card with a unique twist: one percent cashback on expenditures directed into a user’s stock or ETF savings plan.
Fees
Trade Republic’s fees are transparent and there are no hidden costs. Users can buy stocks for as low as €1 and trade derivatives with premium partners such as Citi, HSBC, Société Générale, and UBS. The platform also allows users to hold crypto like Bitcoin or Ethereum around the clock, regulated in Germany.
Regulation
Yes, Trade Republic is regulated by the Federal Bank of Germany and the top-tier German regulator BaFin. This means that Trade Republic is a trusted platform with millions of customers and billions of assets under management across 17 European countries
Controversy
During the GameStop stock surge in January 2021, Trade Republic imposed a buying halt on selected stocks, citing an extreme market situation. The decision faced criticism and accusations of market manipulation. Politicians called for investigations, and the company later apologized. The Federal Financial Supervisory Authority (BaFin) found no evidence of market manipulation by Trade Republic after examining user complaints in March 2021.
Experienced Issues
Trade Republic has faced several criticisms and challenges:
- Customer Service Issues: Users have reported difficulties in reaching customer support, citing unresponsiveness and delays in addressing inquiries.(Computer Bild)
- Delayed Dividend Payments: There have been instances where customers experienced delays in receiving dividend payouts, leading to dissatisfaction among investors.(Börse Online)
- Technical Glitches: Some users have encountered technical problems, including issues with the app’s functionality and order execution, which have affected trading experiences. (Computer Bild)
- Regulatory Scrutiny: The German financial regulator, BaFin, has reportedly received numerous complaints about Trade Republic, prompting closer examination of the company’s operations.(Merkur)
- Marketing Practices: Trade Republic faced criticism from consumer protection agencies over certain marketing strategies, particularly concerning promotions linked to their credit card offerings.
People
- Christian Hecker (Founder)
- Thomas Pischke (founder)
- Marco Cancellieri (Founder)
- Andreas Torner (Managing Director)
- Gernot Mittendorfer (Managing Director)
Customer review
Trustpilot 3,9 Stars with 15.000+ Reviews
Forbes: 4,8 Stars
News
Trade Republic has unveiled a Visa debit card with a unique twist: one percent cashback on expenditures directed into a user’s stock or ETF savings plan. The move aims to eliminate barriers to entry for investors and positions Trade Republic as a competitor to traditional Neobanks. Founder Christian Hecker emphasizes a focus on investment, offering a four percent interest rate, fee-free accounts, and bonuses for ETF savings plans. The integration of investment and daily spending challenges conventional banking norms. Trade Republic’s growth, with four million customers and 35 billion euros in wealth, culminates in its first-ever profit after a challenging 2022.
Conclusion
We could not find anything negative around Trade Republic, all data as well as a Bafin license and a German bank license are available and also the customer ratings are positive therefore we rate them green
