Trade Republic is a neo Stock Exchange broker, specializing in online Stock Exchange brokerage which offers an intuitive app allowing you to invest in a large number of assets spread over a large number of stock exchanges, with innovative solutions such as split shares or the regular and automatic investment in stocks and ETFs.
Trade Republic: history and key figures of the neo-online broker
Trade Republic was established in 2015 and is a German investment firm supervised by BaFin (the German financial supervisory authority) and the Bundesbank while having all the characteristics of a fintech. Trade Republic, therefore, offers the reliability, security, and know-how of a banking institution that applies all European directives and allows its customers to benefit from a guarantee fund of up to 100,000 euros while offering the agility, technology, and innovation specific to a fintech.
Trade Republic has been offering its brokerage services since 2019 in Germany, has been present since the end of 2020 in Austria, and arrived on the French market at the beginning of 2021 after raising 62 million euros. In the first half of 2021, Trade Republic raised $900 million.
The company since then valued at 5 billion dollars has won 1 million customers in two years in France, Austria, and Germany. Trade Republic has become a major player in individual savings at the European level with more than 6 billion euros in client assets.
Trade Republic has set itself a target of 100,000 French customers before the end of 2021 and is focusing on young people. It must be said that across the Rhine, 1 client out of 2 is under 30 years old and had never set foot on the stock markets. "The same trend seems to be emerging in France," said Matthias Baccino, France Director of Trade Republic in a press release published in July 2021.
It has been Germany's most downloaded trading app since 2020. That year, Trade Republic was voted "Germany's best bank for investing" by leading business daily Handelsblatt.
Trade Republic: broker or bank?
Trade Republic is a stockbroker that, even if it exercises only a brokerage activity, has a German banking license and can therefore be considered technically as a bank. However, it is only a mobile trading platform that allows you to invest your money in a securities account and does not allow you to have a current account, passbook, or other traditional banking services.
However, the broker's banking license is a guarantee of security, Trade Republic offers the same guarantees as any other bank in the Euro Zone.
Characteristics of the brokerage offer offered by Trade Republic
€1 per order for all assets, all marketplaces, and whatever the amount of the transaction + one share offered at the opening of the account with a value of €10 to €200. Investing involves the risk of loss.
Invest online with the broker Trade Republic on a wide variety of stock exchanges
The neo online broker Trade Republic allows investors to position themselves on the main world stock exchanges by investing in the American (US, Canada), European (Germany, United Kingdom, Switzerland, France, Holland, Sweden, Italy) markets.
Austria, Spain, Finland, Denmark, Norway, Luxembourg, Belgium, Portugal, Poland, Hungary, Greece, Czech Republic, Ukraine, Liechtenstein) but also on the Asian market (Japan, China, Hong Kong, Singapore) and even on the Australian market or in emerging countries (India, Brazil, Israel, Bermuda, Indonesia, Mexico, Taiwan), etc.
Stocks and assets available on the Trade Republic mobile trading app
In all, more than 8,500 stocks and ETFs are offered to retail investors. It is rather rare to find a stockbroker allowing its clients to invest in such a wide range of securities listed on regulated markets. Also note that Trade Republic provides access to more than 600 French stocks and offers a wide choice of ETFs from reputable issuers such as Amundi, iShares (BlackRock), Lyxor, and Xtrackers (DWS).
It is possible to place its securities on a securities account (CTO) only. Trade Republic does not allow (or at least not yet) to invest in the stock market via a PEA. However, this possibility could happen very soon, Trade Republic wishes to offer French savers the investment on PEA from 2021.
Derivative products such as options, futures, or CFDs, for example, are not part of Trade Republic's financial product offering. But Trade Republic now offers exchange products.
Since November 2021, Trade Republic has been offering all its new clients, on a random basis, a share or fraction of shares in the amount of €10 to €200. When opening their account, new customers are allocated a share or fraction of shares of major listed companies such as Apple, Alphabet, Amazon, Tesla, Netflix, Microsoft, Nike, or even Walt Disney.
Wallet and mobile cryptocurrency and foreign currency trading
The Trade Republic broker does not allow investing in the currency market. Cryptocurrency trading is also not available with this online broker, which does not offer cryptocurrency wallets to its customers. The broker only allows the purchase of shares and ETFs as well as stock market products from a securities account and therefore exclusive positioning on the stock market.
Trading interfaces offered by the broker Trade Republic
Trade Republic is an application available on iPhone and Android smartphones. It can be downloaded for free from the App Store and Google Play. It is then possible to open an account in less than 10 minutes.
The platform has a sophisticated authentication solution and an encryption system for web pages. This is a guarantee of security for users.
But above all, we will highlight the simplicity of this app which allows you to invest in the stock market in a few clicks on a large number of assets, at the office or at home, in transport or on vacation, during extended market hours from 7:30 a.m. to 11 p.m. . The fluidity of use and the transactions that can be carried out in a few clicks are a real plus.
Place stock market orders on the markets from the Trade Republic mobile trading platform
It is very easy to choose which assets to invest in, with a stock market order or a limit or trigger order. You can easily set the maximum purchase price and the minimum sale price for all the securities you wish to trade.
Our opinion on the interface of the mobile trading platform of the broker Trade Republic
The Trade Republic interface allows you to find key information for each security, such as capital gains or losses (daily and cumulative), the amount of the stock market portfolio, details of positions, etc. So many elements that allow you to follow the performance of your investments at a glance on your smartphone!
Scheduled payments without commission fees: how automatic investments work, specialty of the broker Trade Republic
Finally, and this is one of the key features of Trade Republic: the stock broker offers a programmed investment solution on 1,000 ETFs and 2,500 shares. It is therefore possible to choose to invest on the stock market regularly and automatically (from 10 euros of investment per month) in a large number of assets to build up a financial heritage over time.
Automatic investments represent an advantageous solution for small budgets that cannot invest a large sum in the stock market at once, but also for all risk-averse investors who have never invested in the stock market, paralyzed by the idea that they could invest in a higher high.
Note that it is possible, via the programmed investment plans, to buy fractions of shares (only one part of a share), which allows the most modest investors to position themselves on very expensive securities by buying only a percentage of the stock. For example, if the Tesla share is quoted at 700 dollars, it will for example be possible to buy 1/10 of it, which represents an investment of only 70 dollars.
The hyper-competitive rate of the stock broker Trade Republic
Trade Republic has a very simple fee schedule with a single fee of €1 per transaction, regardless of the asset concerned and regardless of the marketplace concerned. Regardless of the type of order, the amount of the order, or the number of orders executed, the price remains unchanged: €1 per transaction.
A market order of €350 on a French share will therefore be charged €1, as will a trigger level order of €3,500 on an ETF on the American market.
Trade Republic neo broker fees are transparent and clear, with no hidden fees. Indeed, no inactivity fees are applied, custody fees, or withdrawal fees. Finally, exchange fees are not increased.
This ultra-advantageous pricing policy is made possible by the technology of Trade Republic, which has developed its own banking and financial market operator technological infrastructure, with recognized partners such as HSBC. These technological innovations allow fintech to drastically reduce costs.
Please note: Instant deposits into your custody account are free. It is possible to feed your CTO, without any fees or commission, via several instant payment methods: Visa and Mastercard bank cards, Apple Pay, and Google Pay.
Open an account with Trade Republic
Opening an account with Trade Republic is done in 4 steps. First, you will need to go to the Trade Republic website and click on the “I start investing” button. You will then need to click on the “Open an account” button. Then, you will have to provide your telephone number, and a code will be sent to you which you will have to indicate on the site.
You will then have to indicate and justify your identity and your address, all electronically. You will then have to complete the “Know Your Customer” questionnaire, a legal obligation for all stock brokers, which will allow you to assess your investor profile. Finally, you will be able to access the mobile trading platform from the Trade Republic mobile application.
To fund your securities account for the purchase of shares and ETFs, you must make a transfer to your securities account.
Our opinion on Trade Republic
The Trade Republic broker offers a simple offer, clear pricing, and an easy-to-understand interface and thus democratizes equity investment.
It offers a complete and very competitive offer in terms of fees that will appeal to the general public. We will also highlight the programmed investment solution which allows you to benefit from the ultra-attractive returns of the equity market over the very long term by saving without having to think about it and in a relatively painless way.
We regret all the same the absence for the moment of the PEA and the obligation to invest in the stock market from a securities account, without an advantageous tax framework.
Also beware: the trading tools are relatively limited, the offer in terms of SRD non-existent, and there is no possibility of using graphic and technical analysis software, which the most active investors wish to implement sophisticated trading strategies.
Who is the Trade Republic mobile broker for?
When to choose Trade Republic? Is the Trade Republic broker's offer suited to your needs?
First, this broker is aimed at investors who are very familiar with digital technology and who will not be put off by the exclusive use of a mobile app. Then, the possibility of buying split shares (with a lower entry ticket) and setting up a scheduled payment plan from 10 euros per month will appeal to people with a small budget to invest. on the stock market.
The relatively limited field of assets, which favors the purchase of large-cap equities and ETFs on the main world markets, will appeal to investors looking for very traditional investments (no exotic small caps, for example).
This is why the Trade Republic broker seems to us particularly appropriate for the young and beginner investor. In fact, the majority of Trade Republic clients have never invested in stocks before. Trade Republic aims to allow neophytes to learn about investing and therefore pays its new clients, not a welcome bonus in the form of money but a share or a fraction of a share to make them shareholders at full share.
Investors with families may also be seduced by this broker, even if the offer for this type of public would clearly benefit from being enriched with a PEA. But Trade Republic will also be able, thanks to its super advantageous pricing, to serve as a complementary broker for an experienced investor who will carry out his medium-long term equity and ETF investments with this neo broker and will open an account with another broker to set up his short-term strategies via SRD or sophisticated derivatives.
FAQs
How to make money with Trade Republic?
Trade Republic allows you to earn money on the equity markets by realizing a capital gain, that is to say by reselling for example your assets more expensive than you bought them but also thanks to the returns of the shares to dividends that you could subscribe.
How to start trading with Trade Republic?
To position yourself in the financial markets, you must register on the site of the online broker Trade Republic and open a securities account. You can then either buy ETFs or shares directly or opt for scheduled payments which allow you to invest in trackers and fractional shares from 10 euros per month.
What are Trade Republic's rates?
Trade Republic's brokerage fees are very advantageous and transparent: no hidden fees, no custody fees, no exit fees, etc: only a fixed fee of €1 per transaction is charged, regardless of the asset traded, the stock exchange concerned, or the amount of the order.
Disclaimer:
All of our information is, by nature, generic. They do not take into account your personal situation and do not in any way constitute personalized recommendations with a view to carrying out transactions and cannot be assimilated to a financial investment advisory service, nor to any incentive to buy or sell instruments.
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