The Business Model of Trade Republic
Trade Republic Bank GmbH, TR for short, is a German online broker that was founded in Munich in 2015. The company is counted among the neo-brokers, i.e. online brokers that are characterised by low fees, fast trading and simple digital operation, mostly via smartphone using a trading app. Trade Republic allows its users to trade stocks, ETFs, derivatives and cryptocurrencies through an app and a browser application. The company advertises €1 order fees, no custody fees, 10,000 stocks and ETFs and €100,000 deposit protection. Since October 2022, partial shares can also be traded. Trade Republic receives a rebate (PFOF) from the transactions carried out with the partners LS Exchange, HSBC, Citibank and SG. Crypto trading has also been offered in Austria since November 2022. Trade Republic is a securities trading bank licensed in Germany and supervised by the Bundesbank and BaFin. The company operates in 17 European countries and manages assets of more than €6 billion.