Trade Republic has become one of the most popular investment platforms in Europe, allowing beginners and experienced investors to access financial markets with very low commissions. But do you really know all that this German platform has to offer?
Trade Republic: The German broker that democratizes investing
Have you ever wondered why some people seem to have privileged access to the investment world while others watch from a distance? Trade Republic was born precisely to change this reality, bringing the financial markets closer to all users through an intuitive platform and extremely competitive commissions.
Trade Republic is a broker of German origin that offers its users the possibility to invest in stocks, ETFs, cryptocurrencies and bonds through a simple interface designed primarily for mobile devices. Its value proposition focuses on accessibility: you can start investing with as little as €1, thanks to the purchase of fractional shares.
What really sets Trade Republic apart from other traditional brokers is its commission model: just €1 per trade, regardless of the amount invested. This transparent structure has revolutionized the European market, removing the economic barriers that have traditionally hindered small investors from accessing the financial markets.
Which bank is behind Trade Republic?
Although Trade Republic operates as a broker, it has a full banking license in Germany, which allows it to offer additional services such as interest-bearing accounts and debit cards. However, it is important to note that Trade Republic does not directly store its clients' money.
To ensure the safety of the funds, Trade Republic cooperates with top-tier banking institutions such as:
- Deutsche Bank
- Citibank Europe
- HSBC Continental Europe
- J.P. Morgan
These institutions are responsible for the safekeeping of clients' cash through collective trust accounts. This means that, although the money is deposited in the name of Trade Republic, it legally belongs to the clients and is protected by the European Deposit Guarantee Scheme up to 100,000 euros.
As for financial assets (shares, ETFs, cryptocurrencies), these are mainly held in custody by HSBC, which keeps them separate from its own assets. This asset segregation ensures that, in case of financial problems of the broker, the assets remain intact and can be transferred to another entity.
How much does Trade Republic charge for depositing money?
One of the great advantages of Trade Republic is its clear and transparent commission policy. In general, depositing money at Trade Republic is completely free of charge via traditional bank transfer. However, there are some options with associated costs:
- Standard Wire Transfer: $0 (processing time: 1-2 business days)
- Instant Deposit (via card, Apple Pay or Google Pay): 0.7% of the deposited amount
This structure allows you to choose between totally free or immediate depending on your specific needs. Unlike other brokers, Trade Republic does not set a significant minimum deposit amount, and you can start with as little as €10, which greatly facilitates access to new investors.
How to invest in Trade Republic? Step by step guide
Investing in Trade Republic is a simple process that you can complete in just a few minutes. Follow these steps to start your journey into the world of trading:
1. Download the app: Available for both iOS and Android.
2. Register: Provide your basic personal information and verify your identity through a 100% digital process.
3. Make your first deposit: Transfer funds from your bank account (minimum €10).
4. Explore the markets: Browse over 8,000 stocks, 2,000 ETFs and 50 cryptocurrencies available.
5. Make your first trade: Select the desired asset, indicate the amount to invest and confirm the transaction.
A remarkable feature is that Trade Republic allows you to set up automated investment plans, where you can establish periodic contributions (weekly or monthly) to certain assets. This functionality greatly facilitates systematic savings and long-term wealth building.
How secure is Trade Republic?
Security is undoubtedly one of the most important aspects when choosing an investment platform. Trade Republic has multiple layers of protection that guarantee the integrity of your funds and personal data:
- European regulation: Supervised by the German Federal Financial Supervisory Authority (BaFin) and registered with the Spanish CNMV (number 4873).
- Deposit protection: Your funds are covered by the European deposit guarantee scheme up to €100,000.
- Asset segregation: Purchased financial instruments are kept separate from Trade Republic's balance sheet.
- Indemnity system: Subscribed to the German Bank Indemnity System (EdB), which protects clients' securities.
- Data Encryption: All personal and financial information is transmitted using advanced encryption protocols.
These security measures have enabled Trade Republic to gain the trust of more than 3 million clients across Europe, establishing itself as a reliable platform even for conservative investors.
Is it safe to bet money on Trade Republic?
It is important to differentiate between the security of the platform and the risk inherent in investments. Trade Republic, as an intermediary, is a secure platform that complies with all European investor protection regulations.
However, investing in financial markets always involves risks. Stocks, ETFs and especially cryptocurrencies experience constant fluctuations that can result in significant losses. Trade Republic clearly warns about these risks, especially in the case of cryptocurrencies, stating that:
"Investing in cryptocurrencies is unregulated and may not be suitable for retail investors, as the risk of losing the entire amount invested is high."
Therefore, even if the platform is safe from an operational and regulatory standpoint, each investor should carefully assess their risk profile and financial literacy before “betting” their money on any asset.
What is the commission charged by Trade Republic for currency exchange?
A significant advantage of Trade Republic is that it trades exclusively in Euros, eliminating the need for currency conversions for European investors. Even when investing in U.S. stocks such as Apple or Microsoft, trades are conducted in euros through the Hamburg Stock Exchange.
This feature brings significant savings, as many brokers apply currency conversion fees that can range from 0.5% to 1.5% of the amount traded, significantly reducing the profitability of international investments.
For users who trade exclusively in Euros, Trade Republic completely eliminates this hidden cost, maximizing the efficiency of every trade made.
How much does Trade Republic charge for withdrawals?
Trade Republic's withdrawal policy is quite favorable for users, although it has some peculiarities:
- Withdrawals over £100: Completely free
- Withdrawals under £100: 1€ commission
This structure encourages higher volume withdrawals, optimizing operational costs for both the platform and the users. The withdrawal process is simple and is done directly from the application, with a typical processing time of 1-2 business days.
It is important to mention that Trade Republic only allows withdrawals to the bank account verified during the registration process, an additional security measure to prevent fraudulent activities.
What happens if I have more than 50,000 in Trade Republic?
Trade Republic currently offers an attractive interest-bearing account with an interest rate of 2.75% NIR (2.79% APR) on uninvested cash. However, this remuneration applies only up to a maximum of £50,000. Funds in excess of this amount will remain available in your account, but will not earn additional interest.
Important things to consider if your balance exceeds €50,000:
1. Distribution of funds: Trade Republic distributes cash between partner banks and liquidity funds.
2. Variable protection: While funds deposited in banks are covered by the European deposit guarantee scheme, those invested in liquidity funds do not enjoy the same protection.
3. Taxation: The interest generated is taxed as income from movable capital, with tax rates ranging from 19% to 28% depending on the total amount.
For investors with significant capital, a recommendable strategy could be to keep €50,000 in the remunerated account and allocate the surplus to investment instruments according to the personal risk profile.
Advantages and disadvantages of Trade Republic
Like any financial platform, Trade Republic has strengths and limitations that you should be aware of before choosing it as your primary broker.
Outstanding advantages:
- Ultra-competitive commissions: Only $1 per trade, regardless of the amount.
- Extensive catalog: Access to more than 8,000 stocks and 2,000 international ETFs.
- Fractional investment: Possibility of investing from €1 in high value companies.
- Interest-bearing account: 2.79% APR on balances up to €50,000.
- Automated investment plans: Facilitates savings and investment discipline.
- Extended hours: Operates from 7:30 a.m. to 11:00 p.m.
- Welcome gift: Free share (maximum value €30) for new users.
- No inactivity commission: Your account does not penalize periods without operations.
Limitations to consider:
- Limited variety of products: No access to options, futures or traditional mutual funds.
- Simplified interface: May be too basic for advanced investors.
- Mobile orientation: Some features only available on the app, not the web version.
- Limited educational resources: Little training material compared to other brokers.
- No phone support: Customer support is mainly via chat.
Trade Republic is particularly suitable for beginners or investors with moderate profiles who value trading simplicity and low commissions. More active or sophisticated traders might miss advanced technical analysis tools or a greater diversity of instruments.
Trade Republic Hacienda 2025: How to download the tax report
For Spanish investors, complying with tax obligations is a crucial aspect. Trade Republic facilitates this process by providing a complete tax report that you can download directly from the platform:
1. Log in to your profile on the app or web platform
2. Go to the "Activity" section
3. Navigate to January of the year in question, where you will find attached the previous year's tax report
This document details all your operations, gains, losses and withholdings, greatly facilitating the declaration to the Treasury.
In Spain, gains obtained in the stock market or interest from interest-bearing accounts are taxed as income from movable capital in the IRPF, with the following brackets for 2025:
- Up to 6,000€: 19%
- From 6.001€ to 50.000€: 21%
- From 50.001€ to 200.000€: 23%
- From 200.000€ to 300.000€: 27%
- More than 300.000€: 28%
It is advisable to consult a tax advisor if you have specific doubts about how to declare your investments in Trade Republic.
Is Trade Republic the right platform for you?
Trade Republic has revolutionized the European investment market with its value proposition focused on transparent fees, intuitive interface and wide range of financial products. Its success is based on removing the traditional barriers that separated small investors from the financial markets.
It is a particularly attractive option for:
- Beginner investors who value operational simplicity
- Savers looking for more profitable alternatives to traditional bank deposits
- Long-term investors who want to minimize the impact of fees
- European investors who want to avoid foreign exchange fees
However, it is not the ideal choice for high frequency traders or investors who require sophisticated analytical tools.
Ultimately, Trade Republic represents a democratization of access to the financial markets, allowing more people to build wealth through investing, regardless of their initial capital or previous experience.