Trade Republic review
7
(our review)
On Trade Republic, you can buy and sell stocks, ETFs and other financial products. In our latest review, we rate it a 7. Positive characteristics are its low fees, ability to invest fractionally and the high interest rate on uninvested assets.
Content:
Investing comes with risks. By trading on Trade Republic, you can lose (some of) your investment.
What characterizes Trade Republic?
Trade Republic is a relatively young trading platform from Germany. It was founded in Berlin, in 2019. Since then, it has expanded into other European countries. It is currently active in 17 countries and has 4 million customers.
The platform is relatively cheap and has a user-friendly interface. Compared to other brokers, it does not have the biggest range of investment products. It mainly targets novice, young passive investors.
Most of its services are focused on long-term periodic and diversified investing. It offers investment products like ETFs, stocks, bonds and cryptocurrencies. You also invest fractionally on this platform. Trade Republic is known for its relatively high interest rates on uninvested assets.
Trade Republic mainly targets people who invest in ETFs. It also offers high interest rates on uninvested assets.
Usability
In addition to browser-based trading, Trade Republic has its own app. You can search for ETFs or shares through the app. While doing that, the platform offers options like staggered and periodic investing. Compared to other brokers, the app is easy to use.
If you want to trade on the platform, you will need to transfer money from your bank account to Trade Republic. To do this, you can use a credit card or digital wallets like PayPal, Apple Pay or Google Pay. While the app is active in many European countries, it does not use local payment methods like iDeal in the Netherlands or Bancontact in Belgium.
Customers complain about the fact that Trade Republic’s help desk can only be reached by email. And often, a chatbot answers those emails. In some reviews, reactions from the platform did not really answer any questions from the customer.
Most users find the platform itself very easy to use. It is easy to navigate, even for novice investors.
Product offer
Trade Republic offers low costs and a user-friendly interface. Especially on its mobile app. For stocks or ETFs, it does not have the largest product range, but for people who are primarily passive investors, it is sufficient. The basics are definitely there.
Besides popular etfs and stocks, it also offers about 50 different cryptocurrencies. To deposit or withdraw these you must first exchange them to euros. On the platform you can also invest fractionally in (government) bonds. Furthermore, it is known for relatively high interest rates on uninvested balances.
Trade Republic offers an interest rate of 3.75% on uninvested cash
At the time of writing, summer 2024, it offers an interest rate of 3.75 percent on uninvested cash (up to a maximum balance of 50,000 euros). Because Trade Republic is a full German bank, uninvested cash up to 100,000 euros falls under the European Deposit Guarantee Scheme. Many users open an account on the platform as a savings account, without actually trading on it.
Banking license
Ever since the end of 2023, Trade Republic has had its own banking license. With this, it meets the strict requirements of the ECB and German Bafin, the German Financial Markets Authority. The license allows the platform to provide banking services, including deposit and lending activities.
Trade Republic’s fees
Trade Republic’s fees are quite transparent and straightforward:
- Transaction fees: To buy and sell stocks, ETFs, bonds, derivatives and cryptocurrencies, you need to pay one euro per transaction.
- Deposit fees: The first deposit is free for new customers. For subsequent deposits, the platform charges 0.7 percent. You can deposit money through a SEPA transfer or credit card.
- Currency fees: The platform works in euros. If you are trading in a currency other than the euro, it charges currency fees. For example, if you are receiving dividends from shares in other currencies, the height of that dividend will depend on exchange rates.
- Custody or withdrawal fees: Trade Republic does not charge a custody or withdrawal fee.
- Spreads: Trade Republic forwards orders to the LS Exchange, where a spread (difference between buying and selling prices) may apply.
Our review score: 7
In our review, Trade Republic scores a 7 out of 10. For passive investors, who want to receive high interest rates on their uninvested balances, it is a good platform. For active investors, it could be an interesting second platform. This is because of the option to invest fractionally in stocks and (government) bonds.
Apart from that, Trade Republic is not our preferred platform. Other platforms like eToro or Freedom24 have a greater product range and/or more information for active investors.