Trade Republic Launches Bond Trading

BY Business Wire | CORPORATE | 09/15/23 02:00 AM EDT
  • As the first European broker, Trade Republic now enables its customers to invest in government and corporate bonds as of 1 euro
  • This allows investors to secure long term high interest rates and further diversify their portfolio
  • Trade Republic will pass through 4% interest p.a., on uninvested cash, to its existing and new customers as of October 1, 2023

BERLIN--(BUSINESS WIRE)-- 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.

"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," says Christian Hecker, co-founder of Trade Republic. "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 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.

About us

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.

Source: Trade Republic

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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