European Savings Platform Trade Republic Introduces Bond Trading

Trade Republic, a popular German neo-broker, has expanded its offerings to include bond investments. Customers can now invest in 500 liquid government and corporate bonds on a daily basis, aiming to secure high interest rates over the long term.

Christian Hecker, co-founder of Trade Republic, emphasized the importance of bonds as an asset class in the current environment and highlighted the lack of access for retail investors. He stated that Trade Republic is the first broker in Europe to open up the bond market to retail investors, removing the need for expensive banks or advisors. By expanding its offerings to include bonds, Trade Republic aims to make the capital market more accessible for a wider range of people.

Trade Republic aims to address two challenges of the bond market: high minimum investments and low liquidity. As the first in Europe, the company now offers 500 liquid government and corporate bonds that can be invested with just 1 euro. Additionally, there are no order commissions, and a fixed third-party fee of 1 euro per trade applies.

This move by Trade Republic marks a significant step towards democratizing access to bond trading in Europe. Previously limited to a select group of investors, bond trading is now available to a broader customer base. The company believes that the current environment with high interest rates provides an opportunity for wealth creation through bonds.

Trade Republic also announced that it will pass on the interest of 4% per annum on uninvested cash received from partner banks to its existing and new customers starting from October 2023.

The company’s mission is to provide secure, easy, and commission-free access to capital markets, aiming to set Europeans up for wealth creation. It offers a range of investment options, including savings plans, fractional investing, ETFs, bonds, derivatives, and cryptocurrencies. Trade Republic is supervised by Bundesbank and BaFin, ensuring regulatory compliance.

Founded in 2015 by Christian Hecker, Thomas Pischke, and Marco Cancellieri, Trade Republic has received investments from prominent firms such as Accel, Ontario Teachers’, Peter Thiel’s Founders Fund, Sequoia, and TCV.

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