stock trading app trade republic expands to france

The German financial technology firm Trade Republic is launching its application and services in France this week. This represents a substantial step in the company’s growth, as Trade Republic has previously only been accessible to customers in Germany and Austria.

Trade Republic enables users to purchase and sell stocks or exchange-traded funds (ETFs) directly from their smartphones, offering minimal and clear pricing. The company implements a flat fee of €1 ($1.21) per transaction, regardless of whether a single share valued at €100 is being bought or €10,000 is being invested in an ETF. The firm assures customers that no additional commission is added to this €1 fee.

The platform allows investment in European equities, as well as shares of companies based in Asia and the United States. In total, the app provides access to 7,500 different stocks and ETFs. Although the service is relatively recent, Trade Republic has dedicated several years to developing its underlying infrastructure.

The company operates in collaboration with Solarisbank, a German banking-as-a-service provider overseen by German regulatory bodies. This partnership ensures that customer deposits are protected up to €100,000 ($121,000) in the event of insolvency. When executing trades, Trade Republic utilizes LS Exchange and HSBC Transaction Services for share handling.

Trade Republic aims to differentiate itself from competitors like Robinhood. The company believes the current trading landscape presents only two choices.

Individuals can establish a trading account with a traditional bank or brokerage firm, but often encounter substantial fees. Alternatively, they can utilize a mobile-focused broker, which may encourage investment in higher-risk assets and frequent trading. As demonstrated by recent events surrounding GameStop, the latter approach can sometimes result in negative consequences.

Trade Republic is advocating for a different approach – combining low costs with reduced risk. The company actively promotes savings plans, which allow for gradual investment in shares, potentially mitigating the impact of market fluctuations.

Last year, the company secured €62 million in funding ($75.22 million based on current exchange rates). This Series B funding round was jointly led by Accel and Founders Fund.

French users should be aware of the requirement to declare any foreign bank accounts when completing their tax returns. Furthermore, foreign brokers may not automatically provide information to tax authorities for pre-populated tax reports. However, for those comfortable with these considerations, Trade Republic is likely to be a more cost-effective option than traditional banking services.

Update: Trade Republic has provided the following statement. “Trade Republic will be supplying tax reports for our clients and anticipates releasing this functionality within the coming months, coinciding with French customer tax filing requirements.”