How can you save your savings when the macroeconomic context is of no use to your savings accounts and other Euro life insurance funds? Demographics, negative interest rates and inflation will have had the last laugh. The remuneration of our savings as we knew it is no longer really relevant.
Fortunately, some have felt it for a long time. The commercial republic, founded in 2015, took four years to develop its idea of having a German brokerage bank license (investment firm in the sense of French regulations) and developing an optimal technical infrastructure. As a result, the start in Germany in 2019 was a success.
The app is known as an online brokerage service. Trade Republic prefers to speak of an asset management platform or a savings platform. Because his vision is to increase savings – and not to use the stock market as a game of chance.
Customers can buy stocks there in a unique way or choose from investment plans. All with a regular long-term perspective, “a background that has accumulated over time,” as Christian Hecker, his CEO and co-founder, introduced us to in an interview. “Many people in Europe are looking for an alternative way to save,” he added.
According to the Autorité des Marchés Financiers (AMF), there were 150,000 new investors in France between February 24 and April 3, 2020. What shows the attraction and the need to find an alternative. The same number as given by the trade republic after only one year of activity. In France, the broker application has been available since January 26th.
Invest smartly and increase your savings
The platform is fun and perfectly transparent to quickly explain the price of its use to the customer. To buy stocks, ETFs or other transactions, you only have to pay € 1 per order – in total and for all. There is no billing for exchange rates, inactivity fees or other commissions. € 1 per buy transaction, regardless of the order amount or the stock or ETF traded, and Trade Republic will stop there. Purchases via programmed investment plans are also made without brokerage fees (the € 1 is not withdrawn).
An extensive selection of stocks is available for intelligent and long-term investments. 7,500 to be precise – on the American, European and Asian stock exchanges, which, thanks to the different time windows of the world markets, cover transactions between 7:30 a.m. and 11:00 p.m. from France. 1150 ETFs (Exchange Traded Funds) are also available, for example from Lyxor, BlackRock (iShares), XTraxkers or Amundi.
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The aim is not to force users to take risks by acting in the short term when smart knowledge is required, but to invest gradually and over the long term. “We don’t want to act more than five or ten times a month. We prefer our clients to only do two or maybe three for the next 20 years, ”said the co-founder.
To this end, Trade Republic has even launched its own investment plans. Instead of investing a large part of our savings and risking a lot, the application offers to select stocks and ETFs in a programmed plan and then to invest according to a certain configured frequency (15, 30 or 90 days), a fixed amount and an execution date .
Since stocks and ETFs don’t follow the same short-term and long-term trends, and very short-term orders require in-depth knowledge, this plan allows you to only invest what we are willing to invest each month, possibly in fractions of shares (possible with Trade Republic) and on multiple stocks to diversify the investment.
In addition, the commercial republic’s investment plan exempts you from operating costs of 1 euro. Every operation is completely free. Even if there are two purchases per month (the plan is set to 15 days investment frequency), no Trade Republic fees or commissions will be charged to customers.
Most of all, simplicity
The trade republic is therefore a very serious alternative and is at the service of its customers. Simplicity is there. The account opening takes less than 8 minutes, the deposited amounts are safe (up to 100,000 €) and it is very easy to make transfers and withdrawals at any time.
To be in the tax order, Trade Republic is also a rare use case that offers its users to download an entire file (the unified tax form) at the end of the year about their various operations and about the procedures for simply declaring their profits to download its securities Tax off.
Customer service is available. “There are currently 90 people working there in France and we are drastically increasing the workforce,” explained Christian Hecker. He fears that customers “can get an answer to their question through our platform in less than 24 hours,” he added.
Open an account in less than 8 minutes and invest in Trade Republic:
Discover the trade republic