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Trade Republic launches fractional stock trading 

Tuesday 11 October 2022 09:34 CET | News

Germany-based savings platform Trade Republic has announced allowing its customers to buy a fraction of a share or trade an ETF with any EUR amount.

 

This allows investors broader portfolio diversification and access to all assets. With the purchase of fractional shares, real shares are transferred to the investor at Trade Republic. According to a Trade Republic representative, the introduction of fractional shares and ETFs advances the democratisation of wealth accumulation for users.

New features

With fractional shares, customers can further diversify their portfolio within their individual budgets. When trading full stocks or ETFs, the minimum investment is always the price of a full share. With the new offer, investors can invest in any portion of a stock or ETF and diversify their portfolio. As stated by a Trade Republic representative, clients still own the underlying stock with all the benefits, meaning that customers also receive dividends.

 

Spread across Europe

The company is the first European broker to offer this service to its customers in the EU. Trade Republic enables trading in full and fractional shares, ETFs, derivatives, and cryptocurrencies from a single source via one platform. The company currently has over 280 million users in six European markets, including Germany, France, Italy, and Spain.

Trade Republic's aim is to make private wealth accumulation and retirement planning easier with secure access to the capital markets. The company offers investing in stocks and cryptocurrencies, as well as ETF and stock savings plans. Trade Republic is a technology company overseen by the Bundesbank and BaFin.

Previous Trade Republic financing rounds

In the past, the savings platform has raised growth capital from VC investors including Accel, Creandum, Founders Fund, Ontario Teachers', Project A, Sequoia, TCV and Thrive Capital. Trade Republic last financing round was in June of 2022, in which the company raised EUR 250 million. The brokerage app completed a Series C financing round in May 2021, in which they received almost EUR 740 million, including investments from venture capitalists Sequoia and TCV.


Other developments from Trade Republic

In April 2022, Trade Republic announced cooperating with Deutsche Bank and Citibank. The two then became Trustee account partners of Trade Republic, meaning that new customers and some existing customers will no longer be looked after by Solarisbank, which was previously the only banking partner with whom all custody accounts were held. Both Citi and Deutsche Bank are now subject to the EU directive on statutory deposit guarantee systems. According to a Deutsche Bank representative, they provide Trade Republic with their scalable transaction services and enable processing on the Trade Republic platform.


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Keywords: product upgrade, expansion, trade finance, trading platform, banking, digital assets
Categories: Banking & Fintech
Companies: Trade Republic
Countries: Germany
This article is part of category

Banking & Fintech

Trade Republic

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