Trade Republic Bank GmbH is a Berlin-based financial technology company established in 2015. Operating as a mobile-only, commission-free broker, it provides Europeans with simplified access to global financial markets. The firm enables users to invest in stocks, derivatives, and cryptocurrencies through an intuitive digital platform designed for both beginners and experienced investors.
By combining technological innovation with regulatory compliance, Trade Republic offers a secure and efficient environment for wealth creation. The platform emphasizes accessibility, allowing users to start investing with minimal capital while maintaining robust protections for their assets.
Services and Offerings
Trade Republic’s product suite is structured to meet diverse investment needs through a user-friendly mobile application. All services are designed with a focus on simplicity, transparency, and cost efficiency.
Savings Plans
Users can set up automated savings plans that regularly invest in stocks, ETFs, or cryptocurrencies. This approach encourages disciplined long-term investing and allows individuals to benefit from compound growth over time.
Stocks and ETFs
The platform offers access to thousands of international stocks and exchange-traded funds. Fractional share investing is available, enabling users to purchase portions of high-value stocks with investments as low as €1.
Cryptocurrencies
Trade Republic supports trading in over 50 cryptocurrencies, including Bitcoin and Ethereum. All digital assets are stored securely under institutional-grade custody solutions.
Derivatives
A selection of derivatives products from major international banks is available for trading. While there are no commission fees, a €1 settlement fee is applied per derivatives trade.
Company Background
Trade Republic was founded in Munich in 2015 under the name Neon Trading. It emerged from the startup incubation program of Comdirect Bank. The founding team consisted of Christian Hecker, Thomas Pischke, and Marco Cancelleri, who brought expertise in philosophy, physics, and computer science respectively.
In 2017, Sino AG, based in Düsseldorf, invested in the startup and acquired a majority stake. This early support helped accelerate the company's development and market entry.
Funding and Growth
Trade Republic has successfully secured multiple rounds of funding from prominent investors:
- 2018: $8.5 million in seed funding
- 2019: $12 million Series A round led by Creandum and Project A Ventures
- 2020: $75 million Series B round led by Accel and Founders Fund
- 2021: $900 million Series C round led by Sequoia Capital, valuing the company at $5 billion
- 2022: €250 million extension of the Series C round from Ontario Teachers' Pension Plan
This substantial financial backing has supported Trade Republic's rapid expansion across European markets and continued product development.
Market Expansion and Operations
The broker launched its services in Germany in February 2019, becoming available to all German users by May 2019. By April 2020, the platform had attracted 150,000 users, with more than one-third being first-time investors. The typical user was reported to be male and in their thirties.
International expansion began in November 2020 with entry into Austria, followed by France and Spain in 2021. By the end of 2020, Trade Republic had reached 600,000 customers with €4 billion in assets under management. Notably, 80% of users had established regular savings plans for stocks or ETFs.
In July 2022, the company registered as a cryptocurrency operator in Italy after having launched services there in December 2021. This approval from Italy's Organismo Agenti e Mediatori (OAM) and regulatory body Consob followed similar cryptocurrency service expansions in Spain.
Operational Challenges
Like many high-growth technology companies, Trade Republic faced challenges during market downturns. In June 2022, the company implemented workforce reductions citing overexpansion and changing business conditions.
The broker also encountered significant attention during the January 2021 GameStop trading episode when it temporarily restricted buying on certain stocks including GameStop. The company cited "extreme market conditions" and investor protection concerns, which resulted in approximately 4,000 complaints filed with German financial authorities.
Frequently Asked Questions
What is Trade Republic?
Trade Republic is a German mobile-based neobroker that offers commission-free trading of stocks, ETFs, cryptocurrencies, and derivatives. It aims to make investing accessible to European residents through a simplified digital platform.
How does Trade Republic make money?
While the platform doesn't charge trading commissions, it generates revenue through a €1 settlement fee on derivatives trades, interest on cash balances, and other auxiliary services. This model allows them to offer zero-commission equity trading.
Is Trade Republic safe for investors?
Yes, Trade Republic is a regulated financial institution under German banking supervision. Client assets are protected through segregation and insurance mechanisms, providing security for investor funds.
What countries does Trade Republic serve?
The broker currently operates in Germany, Austria, France, Spain, and Italy. The company continues to evaluate expansion opportunities in other European markets.
Can I invest in US stocks through Trade Republic?
Yes, the platform provides access to numerous US-listed stocks and ETFs. Users can trade these securities during applicable market hours through Trade Republic's international partnerships.
Does Trade Republic offer educational resources?
The platform provides basic educational content and market information to help users make informed investment decisions. However, it does not provide personalized investment advice.
Investment Considerations
Trade Republic remains a privately held company as of 2025. For those interested in exploring alternative brokerage options with international access, consider evaluating platforms that offer comprehensive market access and advanced trading tools. 👉 Compare investment platform features
The company's future plans regarding public listing through traditional IPO or other methods have not been officially announced. Prospective investors should monitor regulatory filings and official company communications for updates on potential public offering developments.
The evolution of digital brokerage services continues to transform how individuals access financial markets, with Trade Republic representing a significant player in the European fintech landscape. Its growth reflects increasing demand for simplified, mobile-first investment solutions that democratize access to global financial instruments.