Trade Republic expands its offering: from now on, customers can invest in 500 liquid government and corporate bonds on a daily basis to secure high interest rates over the long term.
Christian Hecker, co-founder of Trade Republic, said:
“Especially in the current environment, bonds are an important asset class to benefit from high interest rates over the long term. We are the first broker in Europe to open up this asset class to retail investors. Until today, investors had to rely on expensive banks or advisors to access the bond market. With this new offering, we are taking another step to make the capital market accessible for more people.”
Trade Republic solves two challenges of the bond market “for its investors: high minimum investments and low liquidity.”
As the “first” in Europe, Trade Republic says it “offers 500 liquid government and corporate bonds, in which investments can be made with just 1 euro. As always: no order commission and only a third-party fee of 1 euro fixed per trade.”
This opens up bond trading – previously reserved for few investors – to a broad customer group for the first time in Europe, “in line with Trade Republic’s mission to democratize capital markets access.”
The current environment with high interest rates, “offers people in Europe the opportunity to grow their wealth over the long term, including through bonds.”
Trade Republic passes “through the interest of 4% p.a. on uninvested cash received from partner banks to its existing and new customers as of October 2023.”
As noted in the update, Trade Republic is on “a mission to set Europeans up for wealth creation with secure, easy and commission- free access to capital markets. It offers investing in savings plans, fractional investing, ETFs, bonds, derivatives and crypto to millions of Europeans and is supervised by Bundesbank and BaFin.”
The company was “founded in 2015 by Christian Hecker, Thomas Pischke, and Marco Cancellieri and has received investments by Accel, Ontario Teachers’, Peter Thiel’s Founders Fund, Sequoia and TCV.”