trade republic Review
Our take: Trade Republic is a German-based neobroker founded in 2015 that offers commission-free trading in stocks, ETFs, and derivatives through a mobile-first platform. It is surfing on the trend for ETF-based savings plans and we view competition in this space as a good development. However, Trade Republic directs all their trades to the Lang & Schwarz Exchange. The LS Exchange has Lang & Schwarz TradeCenter KG as the sole market maker. Single market maker exchanges are opaque, and may not be fully competitive according to numerous NCA studies. Until recently, some of its Managing Directors also were also involved with Lang & Schwarz Exchange, which may have led to conflicts of interest.
Our assessment: Trade Republic scores 2.9 in its category driven by the reliance on PFOF and a single Exchange. It also lacks sophistication for intermediate and advanced investors. On an absolute basis, the business model also raises questions given the upcoming ban on PFOF in the EU.
- Passive Investors: Trade Republic provides a decent platform for passive investors, especially those focused on ETF investing. The broker offers a curated selection of popular ETFs from major providers like iShares, Vanguard, and SPDR, along with free regular investing plans and no commission fees. However, the absence of tax wrappers outside Germany is a significant drawback.
- Semi-Active Investors: For semi-active investors, the restriction to a single exchange and currency may feel very limiting.
- Advanced Investors: Trade Republic falls short for advanced investors seeking sophisticated trading capabilities. The absence of a desktop platform significantly limits the ability to conduct detailed technical analysis or manage multiple positions simultaneously. While the broker offers some derivatives trading, the product range is limited compared to traditional brokers.
Pros & Cons and suitability
Pros & Cons
- Commission-free trading with €1 third-party fee
- No Custody Fees
- BaFin regulation & Banking Licence
- Limited Stock Exchange Availability
- Mobile-only platform
- Strong Reliance on PFOF
- No tax advantaged accounts
Suitability
Suitable
Good Choice of ETFs but careful with large trades
somewhat Suitable
Limited Choice of currencies and exchanges
SOMEWHAT suitable
Lack of advanced Features and access to Exchanges
Availability
Trade Republic is Available In Europe. Check if the broker is available in your country
This article contains affiliate links. We provide full transparency on how it works.
Broker Snapshot
Why is Trade Republic a Tier 2 broker?
Trade Republic is a Tier 2 broker known for its low-cost trading model. It has 4 million customers and €35 billion in assets under management, with an average client balance of around €9k. Trade Republic operates through Trade Republic Bank GmbH, a custodian bank specializing in the safekeeping and administration of client funds and securities. While not a traditional bank, it handles securities storage, trade settlements, and deposit protection. Its profitability remains undisclosed. Its main competitors are neobrokers like Scalable Capital, rather than Tier 1 players like IBKR.
Mobile-First Broker with German Regulation but not fully transparent
Trade Republic was launched in 2015 and has experienced consistent growth, though information about its profitability is not publicly disclosed. It is regulated by BaFin and is affiliated with its own bank.
Company Info
| Characteristic | Trade Republic |
|---|---|
| Inception Date | 🛈 2015 |
| Headquarters | 🛈 Berlin, Germany |
| Key Owner | 🛈 Privately Held - shareholders include Sequoia Capital, Accel Partners and TCV |
| Bank Affiliated | ✅ Yes (own bank) |
| Listed on Stock Exchange | ❌ No |
| Parent Rating | ❌ No |
| Operating Profit (2023) | 🛈 Not Publicly Disclosed |
Regulation
| Feature | Trade Republic |
|---|---|
| EU Entity | 🛈 Trade Republic Bank GmbH |
| UK Entity | 🛈 N/A |
| Key Regulators | ✅ BaFin |
| EU Regulator | BaFin |
| UK Regulator | N/A |
| EU Guarantee | €20,000 |
| UK Guarantee | 🛈 N/A |
Good Offering but reliance on Single Market Maker Exchange
The platform operates on a mobile-first model, offering commission-free trading with a €1 third-party fee per trade. While primarily focused on stocks and ETFs, the broker executes all trades through the Lang & Schwarz Exchange using a PFOF model.
Features
| Feature | Trade Republic |
|---|---|
| Key Base Currencies | EUR |
| ETF Availability | ✅ Very High (2,400+) |
| Multicurrency | ❌ EUR only |
| Cash Interest | ✅ 3.25% |
| Margin Loans | ❌ No |
| Exchanges | ⚠️ Lang & Schwarz |
| Security Transfer | ✅ Yes |
| External PFOF Reliance | ⚠️ High |
Fee Structure
| Feature | Trade Republic |
|---|---|
| Custody Fees | ✅ None |
| Inactivity Fees | ✅ None |
| ETFs Dealing Fees | ⚠️ €1 |
| FX Fees | ⚠️ 0.5% |
| Deposit Fees | ✅ None |
| Withdrawal Fees | ✅ None |
| Security Lending | 🛈 Not Available |
I. Company
Founded in 2015, Trade Republic is a private company that does not disclose detailed information about its profitability, ownership, or primary income streams. It is regulated by BaFin, a strong financial authority, but offers a relatively low level of investor protection under German regulations. Although it has received funding from reputable investors such as Sequoia, its heavy reliance on PFOF raises concerns about future profitability in light of the upcoming EU ban on the practice.
Business Profile
Trade Republic, founded in 2015 in Berlin, is one of Europe’s leading neo-brokers. As of 2024, it serves over 4 million customers across 17 European countries, with approximately 2.5 million based in Germany. Its business model heavily relies on Payment for Order Flow (PFOF), with all trades executed through the Lang & Schwarz Exchange. This arrangement accounts for a significant portion of its revenue, supplemented by interest income and trading fees. Trade Republic has not disclosed the specific percentage contribution of each revenue stream to its overall income. With the EU set to ban PFOF in 2026, this model may face future challenges. TR secured a banking licence in 2023.
Ownership and Transparency
Trade Republic is a privately held company that has secured substantial venture capital funding. Notable investors include Sequoia, TCV, and Accel, with the company valued at approximately €5 billion in its most recent funding round. Although not publicly listed, it provides some financial disclosures as required by German banking regulations. For the fiscal year ending September 2023, co-founder Christian Hecker reported a “solid double-digit million euro amount” in net profit. As of September 30, 2022, Trade Republic reported assets of €1.5 billion.
Safety Considerations
The company is not public, nor rated. It is not possible to proxy its default risk. As the firm is privately held and hasn’t disclosed its earnings, it is not possible to tell whether they are profitable or not. The total valuation of the company was placed at €5 billion in their last funding round. It is also worth considering that given PFOF is due to be banned in the EU from 2026 onwards and it is thought that this constitutes approximately a third of their income (not possible to give certain percentage as accounts not publicly disclosed), this could mean the business model needs to change after this and could cause issues for Trade Republic if they can’t replace this income.
Regulation & Investor Compensation Schemes
Trade Republic is regulated by the German Federal Financial Supervisory Authority (BaFin) and provides investors with a protection amount up to €20,000. Specifically, the scheme covers up to 90% of an investor’s claims, with a maximum limit of €20,000 per investor. This level of protection – while standard among most EU brokers – is considered low. Cash held at Trade Republic is protected by the German Compensation Scheme up to €100,000, though it is pooled unless held in your name.
Share & Cash Custodians
Client assets are held with:
Cash held with European partner banks including Deutsche Bank AG, J.P. Morgan SE, HSBC Continental Europe S.A., and Citibank Europe plc.
Securities held in segregated accounts with Trade Republic Bank GmbH.
Reputation
Trade Republic has established a solid reputation in the neo-broker market, especially among younger investors. However, it has faced scrutiny for its PFOF model and occasional platform outages during periods of high trading volume. The company has also dealt with reputational challenges, including delays in customer service, technical issues during high market activity, and occasional delays in dividend payments.
II. Fee structure
Trade Republic offers generally low trading commissions but executes exclusively through the Lang & Schwarz Exchange, which operates using a PFOF model. The platform supports trading only in euros and does not facilitate transactions in other currencies. According to NCA research on PFOF, smaller trades are likely executed in line with other exchanges, but trades exceeding €500 may be routed in a manner that increases overall execution costs.
Platform fees
Trade Republic has no platform fees.
Trading Commisions
- Regular Investing Trades: free.
- Stocks and ETFs: €1 third-party fee per trade.
- Derivatives: €1 per trade.
Overall Fee Simulation vs Competitors
Most of our readers have simple Index portfolios. Using our Broker Total cost calculator, you can estimate the total cost of holding ETFs throughout the investment period. For our simulated scenarios, Trade Republic comes out as very competitive but just if you use the Lang & Schwartz exchange this is misleading.
⚠️ SINGLE MARKET MAKER RELIANCE
The below simulation only takes into account direct visible commissions. As a customer you also face less visible costs including spreads. Trade Republic directs all their trades to the Lang & Schwarz Exchange. The LS Exchange (LS-X) launched in 2016,under the supervision of the Hamburg Stock Exchange has Lang & Schwarz TradeCenter KG as the sole market maker. Single market maker exchanges are opaque, and may not be fully competitive as according to numerous NCAs in Europe they have worse execution (spreads) as compared to traditional exchanges like Xetra, particularly for trades above €500. Read more about our research on this 👉🏻
Fee Simulation For General Accounts
The simulation indicates a cost of €0 for both Trade Republic and Scalable Capital. However, Scalable Capital’s €0 cost is limited to regular transactions on the Gettex exchange, while Trade Republic exclusively operates through the Lang & Schwarz Exchange (LSX). Degiro emerges as the most expensive option, with a total cost of €684.
Investor assumptions
| Model Feature | Assumption |
|---|---|
| Investor | European |
| Instrument | ETF |
| Account | International |
| Initial Investment | € 100,000 |
| Monthly | € 1,000 |
| Time Horizon | 20 years |
| Gross Return | 8% |
Total Fees
Currency Exchange fees
For non-EUR transactions, a 0.5% foreign exchange fee is applied.
Other fees
Deposits and withdrawal are free of charge, however there is a €25 fee associated with security transfers.
There is also a €2.99 per month option for premium real time market data, however this is not mandatory as there is also a free option available for basic data.
III. Platform & Features
Trade Republic provides attractive features for investors, such as a wide selection of ETFs and regular savings plans. However, its business model uses the Lang & Schwarz exchange, where PFOF is utilized, as only venue. Cash interest is relatively good.
Account Opening Process
Trade Republic offers a streamlined, digital-only account opening process that typically takes 10-15 minutes to complete. New clients must download the mobile app and provide standard personal information, proof of identity, and tax residency details. The verification process uses video identification through their partner IDnow, which requires a valid government ID and a stable internet connection. While the process is generally smooth, some users report occasional delays during peak registration periods. Once verified, accounts are usually activated within 24 hours.
account Features
- Large Range of ETFs including iShares, Vanguard, SPDR.
- Regular investment plans
- Apps for Android and iOS in several languages, including English, German, Spanish, French, Italian, Portuguese, Dutch, and Finnish.
- Customer Service: it is available trough phone and mobile app although it is no 24/7;
- Intuitive Interface including regular, scheduled investment service.
Internalisation and PFOF
Trade Republic operates on a neo-broker model that relies heavily on Payment for Order Flow (PFOF), with all of their trades routed through Lang & Schwarz Exchange. While this allows them to offer commission-free trading (except for the €1 third-party fee), investors should be aware that orders are exclusively executed through LSX rather than directly on major exchanges, which may have additional costs in terms of increased spreads. This business model has faced regulatory scrutiny and will be banned in the EU from 2026, though Germany may allow it to continue for domestic clients until then.
Cash Interest
Trade Republic offers a competitive interest rate of 3.25% p.a. on all uninvested cash balances, with no upper limit on the amount that can earn interest as at November 2024. This rate applies to all EUR deposits, is calculated daily, and credited to accounts monthly.
Advanced Features
The platform’s feature set is deliberately streamlined, focusing on essential functions rather than advanced capabilities. While this suits most retail investors, it may disappoint those seeking sophisticated trading tools.
Features
| Investment Type | Availability |
|---|---|
| ETFs | ✅ |
| Stocks | ✅ |
| Bonds | ✅ |
| Funds | ❌ |
| Options | ❌ |
| Derivative | ✅ |
| Futures | ❌ |
| CFDs | ❌ |
| Forex | ❌ (only as part of stock/ETF trading) |
| Crypto | ✅ via ETP & ETC’s |
| Commodities | ✅ via ETP & ETC’s |
IV. Taxes
Tax Wrappers
Trade Republic provides standard investment accounts but lacks specialized tax-advantaged accounts in most markets. German residents benefit from automatic tax handling within the annual allowance (Sparerpauschbetrag), but the platform doesn’t offer other wrappers such as PEAs (France) & PIRs (Italy).
Tax Reporting
The broker provides comprehensive tax reporting for German residents, including:
- Annual tax statements (Jahressteuerbescheinigung);
- Automatic calculation and withholding of capital gains tax;
- Loss harvesting documentation;
- Dividend tax certificates.
For non-German residents, basic transaction reports are available, but investors must handle tax calculations and reporting independently.
open an account
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
Trade Wars, Real Wars, but Equities Close To All-Time Highs: Is It A Good Time To Invest?
7 Reasons Why Japan May Be Your Next Cycling Adventure
Nomads in 2026: Genki vs SafetyWing – Which Travel Insurance Wins?
How You Can Cycle The World – A Practical Guide
Weekend Reading – Vanguard Cuts Fees across 15 ETFs & IBKR launches prediction markets
🤔 Wondering why finding honest Investing Guidance is so difficult? That’s because running an independent website like ours is very hard work. If You Found Value In Our Content And Wish To Support Our Mission: