Trade Republic reached profitability in 2023
Online broker Trade Republic has generated its first net profit in its financial year to September 30th 2023. The milestone comes five years after the platform’s launch. According to the company’s founder, Christian Hecker, it now has 35 billion euros in assets under administration.
Trade Republic is an online broker from Germany. Users can invest in savings plans, ETFs, derivatives and crypto or fractional stocks. Last year, it added a new product: fractional bonds.
‘Solid net profit’
According to financial reports, the company made a net loss of 145 million euros in 2022. But in its financial year to September 2023, the company made a net profit. Co-founder Christian Hecker told the Financial Times that the profit consists of a “solid double-digit million euro amount”.
Clients’ assets have increased more than fivefold.
The German startup has been able to attract up to 100,000 new clients per month by the end of last year. It now has a total of 4 million users. Clients’ assets have increased more than fivefold, to 35 billion euros.
Launch of its own spending card
With this milestone in the pocket, the company wants to expand its product offering. It has launched a waiting list for its own branded Visa card. This illustrates the company’s move to spending, in addition to its saving plans. “This makes us one of the most important banks for a new generation of young savers in Europe”, said Hecker.
The spending card offers a cashback into a user’s savings plan.
The spending card offers a 1 percent cashback into a user’s savings plan. At the same time, customers can also use their payments to invest the change into assets. “Every act of spending is an act of savings. This empowers every individual, regardless of income, to start their savings plan and begin building wealth. On our fifth birthday, this is a key milestone on our mission.”
Loss expected in 2024
Trade Republic has raised a total of 1.3 billion dollars from investors. In 2022, it was valued at 5 billion euros. While the company has now reached a net profit, Hecker expects that it will return to a loss this year. The loss will be caused by increased marketing and other investments.
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