Investing with Trade Republic: Save And Invest Guide

 

Investing With Trade Republic: How Much Do You Need to Start?

Trade Republic is a broker from Europe that lets you trade on the stock market and maintain a savings account with an interest rate of 4%. It is approved by the German Federal Financial Supervisory Authority (BaFin), a well-known authority in finance, and has received a banking license from the Federal Bank of Germany. Over 4 million individuals have opened accounts on this platform.

What is Trade Republic?

Trade Republic is an European brokerage firm, located in Germany and providing services throughout the European Union. It was introduced in 2015 with the goal of attracting a wider audience to affordable investment options that also offer more adaptability. The platform, however, is exclusively available on mobile phones to simplify the investment process for all.

Trade Republic functions as a financial institution, holding a banking permit from the Federal Bank of Germany (Deutsche Bundesbank). Moreover, it is overseen by the German Federal Financial Supervisory Authority (BaFin), granting it the authority to provide investment services. This BaFin permit enables Trade Republic to conduct business across the European Union.

The Trade Republic Ecosystem

Trade Republic is recognized for its variety of stock and ETF options but also offers entry into additional markets like Forex, commodities, indices, and cryptocurrencies. Altogether, there are more than 8,500 trading assets available, ensuring a wide range of choices, no matter which markets catch your interest.

Cryptocurrencies accessible on Trade Republic

You can invest in cryptocurrencies on Trade Republic Spain. The platform offers you the chance to trade in the most well-known cryptocurrencies like Bitcoin, Ethereum, XRP, and Cardano, along with alternative cryptocurrencies like Ripple, Avalanche, and others. This market operates around the clock, enabling you to trade cryptocurrencies at any moment through the platform.

At Trade Republic, when you make a purchase of cryptocurrencies, the broker acquires them from established exchanges and keeps them secure at a third-party depository. This ensures your cryptocurrency holdings are safeguarded against cyber threats. Nonetheless, you are unable to transfer or accept cryptocurrencies from another account.

Assets Available Outside of Cryptocurrencies at Trade Republic

Trade Republic stands out as a leading intermediary in the financial sector, particularly for its wide range of investment products, such as stocks and ETFs. It provides access to over 8,500 stocks and ETFs across various global exchanges, including those in the United States, the United Kingdom, and Europe. As a result, investors have the opportunity to diversify their portfolios by investing in assets from different countries and markets.

It's important to note that these investments are tangible assets. Consequently, investors will hold stocks and ETFs in their brokerage accounts and will be entitled to receive dividends. The dividends earned from these investments will be added to your account balance without any extra fees.

Derivative products at Trade Republic

Using the assets listed, you can simply purchase them and wait for their worth to rise. Yet, derivative products enable you to sell while maintaining a risk of loss.

The derivative products or stock products available include warrants, knock-outs, and certificates.

Scheduled investment plans

For individuals interested in pooling their resources into a collection of assets instead of single securities, Trade Republic provides an extensive selection of over 3,500 investment options.

These options function similarly to ETFs or mutual funds, yet they encompass a broader range. For instance, you have the opportunity to allocate your funds into a savings scheme that targets ESG stocks or a particular industry, like technology or pharmaceuticals, among others.

No matter what your future objectives may be, Trade Republic has a strategy tailored to your requirements. Additionally, through regular contributions, you can guarantee that your investments steadily increase in value over time, adjusting to the frequency of your contributions.

How to trade on Trade Republic?

To begin trading on the platform, all you have to do is follow a handful of easy steps outlined below. You'll need to use either your computer or your Smartphone for this. To get started, you'll need to install the Trade Republic app, which is accessible on both iOS and Android devices.

Step 1: Create an account

1)    The initial step is to set up a trading account.

2)    Once you're on the Trade Republic website, select the Start Investing option.

3)    On the following page, you'll need to enter your phone number, and a verification code will be dispatched to you through text message.

4)    Following that, you'll be prompted to generate a PIN for your account. This PIN is essential for authorizing your trades and safeguarding your account from unauthorized access in the future. Ensure you choose a unique PIN and verify the message below.

5)    Upon seeing a congratulatory message, indicating that your account has been successfully created, you're ready to proceed to the next phase by clicking Go!

Step 2: Enter your profile details

Once you've set up your account, the following action is to fill in your information to set up an investor profile, similar to the process on any other platform.

 

1.    Provide your name, email address, physical address, birthdate, and country of citizenship.

2.    Following that, a series of questions will appear to gather your financial details, particularly regarding taxes. These details will be checked for accuracy later, so it's crucial to input the correct information.

3.    A summary of your personal details will be shown; use this opportunity to double-check everything, as it will be difficult to change this information afterward.

4.    Press "Let's go!" to proceed to the next phase.

Step 3: Identity Verification

Regional legislation mandates that every financial services firm must confirm the identity of its clients to thwart the facilitation of money laundering and other unlawful financial activities. As a result, Trade Republic will request that you provide your identification documents for the purpose of verification.

1.    Trade Republic will provide you with a link via your mobile device to capture images for verification purposes. You can accomplish this by either scanning a QR code or by clicking on a link that is sent to your phone via text message, using the phone number you entered earlier.

2.    Once you've received the link, you're to proceed on your mobile device with the application you previously installed.

3.    To access your trading account, enter your phone number and the PIN you established earlier.

4.    An SMS will be dispatched to your phone to confirm the account's ownership, following which you'll get a message indicating that the connection has been established.

5.    Press "Continue" to move forward with the verification steps.

6.    Choose the initial option, which requires you to take a selfie and snap photos of your ID documents.

7.    Grant the Trade Republic app permission to access your location, as this is crucial for verifying your whereabouts.

8.    Take a selfie and upload it through the app.

9.    Photograph a government-issued ID, such as your national identity card, passport, or residence permit. Ensure the photo is clear and that the entire document is visible from all four sides. Verify the documents by entering their unique numbers, like a national ID card or passport number, and then upload them. After that, you can proceed to the next phase.

Step 4: Show your understanding of trading

1.    Through a collection of questionnaires, Trade Republic will request that you detail the frequency of your trading activities with different financial instruments over time.

2.    Proceed with your registration by agreeing to the company's terms and conditions, and you will be prepared to advance to the subsequent phase.

Step 5: Credit your Trade Republic account

To begin trading on Trade Republic, you need to put down a deposit, which can be completed via the app on your phone.

1.    The app will prompt you to fund to your account through a bank wire transfer, credit/debit card (Visa/Mastercard), or Google Pay, based on your preference. Bank wire transfers are the slowest but are ideal for large deposits. The smallest deposit amount is 1 euro. Trade Republic doesn't charge any fees for deposits, but your bank or credit card company might.

3.    If you deposit €50 or more, you're eligible for a welcome bonus of up to €200.

Step 6: Place your first order

1.    Sign into your account using the PIN you created and browse through the various items for trading on the platform. For faster access, look up the particular item you're interested in.

2.    Upon selecting the item, you'll view a price chart and additional information about that item.

3.    Should your evaluation indicate that the item is a wise investment, select Buy and input the desired investment amount.

4.    Verify the order specifics and press the Next button to proceed with your purchase. At this point, you can also establish a set-up for an automatic investment strategy, where your account will automatically make investments at predetermined times.

5.    Review your portfolio to assess your investment success.

Regulation of the Trade Republic platform

Trade Republic has received approval from the German Federal Financial Supervisory Authority (BaFin) to function as an online broker. Furthermore, it holds a banking authorization from the Federal Bank of Germany (Deutsche Bundesbank). These two approvals permit operations within the European Union, yet the platform is not accessible beyond the EU's borders.

Is the Trade Republic app safe?

Trade Republic holds both a banking license and a BaFin license, engaging with the platform is secure. The banking license, in particular, offers a level of assurance in terms of safety, as banks are typically subjected to extensive scrutiny by regulatory bodies, and Germany is recognized for its rigorous oversight.

Moreover, every bank is compliant with the European directive on deposit guarantee schemes. This framework safeguards the funds of depositors, ensuring that you are eligible for compensation up to EUR 100,000 in the event of a bank's failure. This situation is, however, highly improbable, given that Trade Republic exclusively partners with well-established banks like Solarisbank, Citibank, and Deutsche Bank to hold client deposits.

Trade Republic

·        37+ Cryptocurrencies available

·        Best social trading platform

·        Low trading fees

Advantages and disadvantages of Trade Republic

Approved by BaFin, a well-known authority in financial regulation.

It possesses a banking permit from the Federal Bank of Germany.

Collaborates with established banks for holding client funds.

Offers a good selection of cryptocurrencies for trading.

No minimum deposit is needed to begin investing.

Simple to operate mobile application.

ü Interface available in English, French, Spanish and German.

X

      X Not accessible beyond the European Union.

      X Can only be used on smartphones and tablets.

      X No demo account 

FAQ - Frequently asked questions about Trade Republic

Is Trade Republic safe?

The service is overseen by BaFin and holds a banking authorization, ensuring its safety

Does Trade Republic offer a demo account?

No you cannot trade on demo account

Is the Swissborg exchange regulated?

Indeed, the Swissborg exchange is subject to regulation. It holds a license in Estonia and has just received approval to provide its services in Spain, and is acknowledged by the Bank of Spain

Can I access the Trade Republic from Spain?

Indeed, the platform is reachable to Spaniards and is provided in Spanish.

What items can I exchange for other than digital currencies on Trade Republic?

Trade Republic provides access to over 8,500 stocks, ETFs, and derivative products related to stocks, indices, and commodities.

What Cryptocurrencies can I trade on Trade Republic?

At present, you have the opportunity to put your money into over 50 various digital currencies, such as Bitcoin, Ethereum, XRP, and Cardano. For further details, you can explore the Trade Republic app.

What is the minimum deposit required at Trade Republic?

You don't need to make a minimum deposit, and you can begin with as little as €1.