Trade Republic
{{Short description|German online broker and bank}}
{{advert|date=October 2024}}
{{use dmy dates|date=March 2024}}
{{Infobox company
| name = Trade Republic Bank GmbH
| logo = Trade Republic Bank Logo.svg
| type = Private
| traded_as =
| industry = Fintech
| fate =
| predecessor =
| successor =
| founded = Munich, 2015
| founders = Marco Cancellieri
Thomas Pischke
Christian Hecker
| defunct =
| hq_location_city = Berlin
| hq_location_country = Germany
| area_served = Austria, Belgium, Estonia, Finland, France, Germany, Greece, Ireland, Spain, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Portugal, Slovakia, Slovenia.
| key_people = Christian Hecker, CEO
| brands = Trade Republic
| services = Stockbroker
Electronic trading platform
| aum = 100 billion €
| owner =
| num_employees = 1100 (2025)
| parent =
| subsid =
| website = https://traderepublic.com/
}}
Trade Republic Bank GmbH is a German online broker and bank headquartered in Berlin. Shares, bonds, derivatives and cryptocurrencies can be traded on a mobile app.{{Cite news|last=Kluge|first=Christoph|date=2020-07-29|title=Dieses Berliner Start-up will Sparer an die Börse locken|language=de-DE|work=Der Tagesspiegel Online|url=https://www.tagesspiegel.de/berlin/trade-republic-dieses-berliner-start-up-will-sparer-an-die-boerse-locken/26027924.html|access-date=2021-10-15|issn=1865-2263}} As of January 2025, Trade Republic reported having eight million customers.{{Cite web |date=2025-01-09 |title=Trade Republic doubles customer base to eight million |url=https://www.finextra.com/pressarticle/103791/trade-republic-doubles-customer-base-to-eight-million |access-date=2025-05-21 |website=Finextra Research |language=en}}
History
Trade Republic was founded in Munich in 2015 under the name Neon Trading in the startup incubator of Comdirect Bank.{{Cite web|date=2020-11-19|title=Verpasste Chance – Comdirect hätte in Trade Republic investieren können|url=https://financefwd.com/de/comdirect-startup-garage-trade-republic/|access-date=2021-10-15|website=FinanceFWD|language=de}} The company's founders are philosopher Christian Hecker, physicist Thomas Pischke and computer scientist Marco Cancellieri. In 2017, Düsseldorf-based Sino AG invested in the startup and acquired the majority of the company's shares. In 2019 and 2020, venture capitalists Creandum, Project A Ventures, Accel Partners and Founders Fund invested over 60 million euros in Trade Republic; Sino sold shares and was henceforth no longer the majority owner.{{Cite web|title=sino AG {{!}} High End Brokerage: Trade Republic schließt eine €62 Millionen Series B Runde angeführt von Accel und Founders Fund ab - dgap.de|url=https://www.dgap.de/dgap/News/corporate/sino-high-end-brokerage-trade-republic-schliesst-eine-millionen-series-runde-angefuehrt-von-accel-und-founders-fund-ab/?newsID=1316869|access-date=2021-10-15|website=www.dgap.de}}
Securities trading via app was offered in Germany for a closed user group starting in February 2019 and without user restrictions starting in May 2019.{{Cite web|date=2019-07-17|title=Trade Republic: Investoren setzen Millionen auf den mobilen Broker|url=https://gruender.wiwo.de/trade-republic-investoren-setzen-millionen-auf-den-mobilen-broker/|access-date=2021-10-15|website=WiWo Gründer}} As of April 2020, Trade Republic had 150,000 users. More than one-third of customers had "never bought a stock or invested in an ETF before" according to Trade Republic. Users were "on average in their mid-30s" and "male".{{Cite news|last=Hemmersmeier|first=Jana|date=2020-10-16|title=Boom der App-Broker: Die jungen Zocker kommen|language=de|work=Der Spiegel|url=https://www.spiegel.de/wirtschaft/service/trade-republic-robinhood-und-co-app-boom-die-jungen-zocker-kommen-a-5f701590-5a19-43d7-a97f-03f10584c1b0|access-date=2021-10-15|issn=2195-1349}}
Trade Republic began offering its services in Austria in November 2020, as well as in France and Spain in 2021.{{Cite web|last=Mathewson|first=Fiona|date=2021-01-07|title=Trade Republic startet in Frankreich|url=https://www.businessinsider.de/gruenderszene/news/trade-republic-geht-nach-frankreich/|access-date=2021-10-15|website=Business Insider|language=de-DE}}{{cite web|url=https://www.elespanol.com/invertia/empresas/20211118/trade-republic-espana-plataforma-online-inversion-alcance/626187798_0.html|title=Trade Republic llega a España|trans-title=Trade Republic arrives in Spain|date=November 18, 2021|access-date=November 24, 2021}} By the end of 2020, the company reportedly had 600,000 customers with four billion euros in assets under management. Eighty percent of users would have set up an equity or ETF savings plan. As part of GameStop's 2021 stock surge, Trade Republic imposed a stop-buy on select stocks, including GameStop's stock, on the afternoon of January 28, 2021. The broker cited the "extreme situation in the market" and investor protection as reasons for the decision. Over 4,000 complaints were later filed at Federal Financial Supervisory Authority over this decision.{{Cite web|title=Handelsbeschränkungen: Bafin nimmt 4000 Beschwerden gegen Trade Republic unter die Lupe|url=https://www.handelsblatt.com/finanzen/banken-versicherungen/banken/handelsbeschraenkungen-bafin-nimmt-4000-beschwerden-gegen-trade-republic-unter-die-lupe/26901638.html|access-date=2021-10-15|website=www.handelsblatt.com|language=de}}
In May 2021, another financing round of $900 million was announced at a valuation of $5 billion.{{Cite web|date=2021-05-20|title=Trade Republic sammelt 900 Millionen ein (Bewertung: 5 Milliarden) - Pitch bekommt 85 Millionen (Bewertung: 600 Millionen)|url=https://www.deutsche-startups.de/2021/05/20/dealmonitor-20-05-2021/|access-date=2021-10-15|website=deutsche-startups.de|language=de-DE}} In June 2022 Trade Republic raised another 250 million.{{Cite web |title=Ontario Teachers' joins Trade Republic on its mission to empower people to create wealth with €250m Series C extension |url=https://www.otpp.com/en-ca/about-us/news-and-insights/2022/ontario-teachers--joins-trade-republic-on-its-mission-to-empower/ |access-date=2024-01-12 |website=www.otpp.com |language=en}} In June 2022, Trade Republic proceeded with layoffs due to an overgrowth of their work force and tightening business conditions.{{Cite web|date=2022-09-06|title=Entlassungen bei Trade Republic|url=https://financefwd.com/de/entlassungen-bei-trade-republic/|access-date=2022-09-13|website=financefwd.com|language=de-DE}}
Trade Republic has been offering trading in fractional shares of securities since October 2022. Customers can purchase individual shares in stocks and ETFs for one euro per order.{{Cite web |last=Frohn |first=Philipp |date=2022-10-05 |title=Smartphone-Broker: Aktien ab einem Euro: Trade Republic startet Handel mit Aktienbruchteilen |url=https://www.wiwo.de/finanzen/geldanlage/smartphone-broker-aktien-ab-einem-euro-trade-republic-startet-handel-mit-aktienbruchteilen/28717778.html |access-date=2024-06-19 |website=www.wiwo.de |language=de}}
The broker began paying interest on cash deposits in January 2023.{{Cite web |title=So wirbt der Neobroker mit zwei Prozent Zinsen auf Tagesgeld |url=https://www.handelsblatt.com/finanzen/banken-versicherungen/banken/trade-republic-so-wirbt-der-neobroker-mit-zwei-prozent-zinsen-auf-tagesgeld/28903418.html |access-date=2024-06-19 |website=www.handelsblatt.com}} Trade Republic received a full banking license at the end of 2023.{{Cite web |date=2023-12-06 |title=Trade Republic erhält Vollbanklizenz – was das für Kunden heißt |url=https://www.capital.de/geld-versicherungen/trade-republic-erhaelt-banklizenz---was-das-fuer-kunden-bedeutet-34262702.html |access-date=2024-06-19 |website=capital.de |language=de}} In 2024, the company launched its own payment card.{{Cite web |last=Frohn |first=Philipp |date=2024-02-11 |title=Lohnt der Sparplan? : Trade Republics Bezahlkarte im Praxistest |url=https://www.wiwo.de/my/finanzen/geldanlage/lohnt-der-sparplan-trade-republics-bezahlkarte-im-praxistest/29637800.html |access-date=2024-06-19 |website=www.wiwo.de |language=de}} Since it is a German bank, it is supervised by the BaFin. Client money is deposited in an omnibus trust accounts with one of the following banks: Deutsche Bank AG, J.P. Morgan SE, HSBC Continental Europe S.A. and Citibank Europe plc.{{Cite web |title=Why is my money held in an omnibus trust account? |url=https://support.traderepublic.com/en-fi/747-Why-is-my-money-held-in-a-trust-account |access-date=2024-07-01 |website=support.traderepublic.com}}
References
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{{Online brokerages}}
{{DEFAULTSORT:Trade Republic}}
Category:2015 establishments in Germany
Category:German companies established in 2015
Category:Companies based in Berlin