How can you save your savings when the economic context is of no use to your savings accounts and other life insurance funds denominated in euros? 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 testifies to the attractiveness and the need to find an alternative to invest. 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 to 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 Purchases through programmed investment plans continue without brokerage fees (the € 1 amount is not withdrawn).
In order to be able to invest intelligently and for the long term, an extensive selection of stocks (7,500) is available on the American, European and Asian stock exchanges. Thanks to the different time slots on the world markets, this provides coverage for operations between 7:30 a.m. and 11:00 p.m. from France. You also have access to 1150 ETFs (Exchange Traded Funds) like Lyxor, BlackRock (iShares), XTrackers or even 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 .
Because stocks and ETFs do not follow the same short-term trends as long-term trends and very short-term orders, an in-depth knowledge is required. This plan makes it possible to invest only what we are willing to invest each month, possibly in fractions of stocks (possible with Trade Republic) and in multiple stocks to diversify the investment.
On the other hand, the commercial republic’s investment plan also 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. Simple and transparent at the same time.
Most of all, simplicity
The trade republic is therefore a very serious alternative and is at the service of its customers. 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 the focus of the offer and “90 people are currently working in France and we are in the process of increasing the workforce dramatically,” explained Christian Hecker, who fears that customers “can get an answer to their question in less than 24 hours through our platform, ”he added.
Open an account in less than 8 minutes and invest in Trade Republic:
Discover the trade republic