Does Trade Republic offer business accounts? Alternatives in 2024

Is your company looking for the best way to strategically invest its excess capital?

We’ve been there before!

Putting these funds to work on a brokerage account can offer significant advantages, such as:

1. Earn interest: Getting returns on your uninvested cash balances, which are often higher than those offered by national banks;
2. Diversify: If you prefer not to reinvest directly in your business, the stock market offers an opportunity to diversify your holdings;
3. Postpone taxes: By reinvesting within the corporation, you can potentially defer taxes, keeping more capital at work for your business.

If you’re a business owner considering Trade Republic as an option, you might wonder if it supports business accounts as it does for retail investors.

In this article, we’ll explore whether Trade Republic offers business accounts and discuss alternative options, focusing on factors such as reputation, security, fees, and customer support. Let’s dive in!

Does Trade Republic offer business accounts?

Unfortunately, no. Trade Republic currently only provides accounts for individual investors (personal use) and not for business purposes (including joint accounts or accounts for minors), as confirmed in their FAQs:

If you run a limited company or another type of corporation, it’s important to explore different options. Below, we look into alternative platforms for business investments!

Best Trade Republic alternatives for businesses

1. Interactive Brokers: Our top pick. No minimum deposit and low fees, offering a wide range of financial products
2. Saxo: Best for professionals looking to spread their investments across different brokers
3. Lightyear: Best for high interest on your uninvested cash
4. eToro: Ideal for beginners, crypto, and those seeking simplicity

Comparison

Reviewed Trade Republic alternatives for business accounts

1. Interactive Brokers business account

Why do we consider Interactive Brokers the best choice for business accounts?
To begin with, Interactive Brokers is a publicly traded company on NASDAQ, regulated by top-tier authorities around the globe, which ensures a high level of trust and security.

The platform offers an extensive range of investment products, including stocks, options, mutual funds, ETFs, futures, bonds, cryptocurrencies, and currencies. Interactive Brokers also provides a variety of advanced tools for both technical and fundamental analysis, which are essential for making informed investment decisions.

Additionally, IBKR’s strong financial stability is evident in its ability to withstand market complexities. The company’s solid infrastructure and regulatory oversight help ensure its resilience in challenging market conditions.

or more information on IBKR’s financial strength and the measures they have in place, you can visit their Financial Strength and Security page.

Interested in knowing more about Interactive Brokers business accounts? Visit IBKR’s website or check out our step-by-step guide on how to create a business account at Interactive Brokers.

2. Saxo corporate account

Founded in 1992, Saxo is a well-established name in the brokerage industry, offering access to over 70,000 financial instruments through its advanced trading platforms, SaxoTraderPRO for desktop and SaxoTraderGO for mobile.

Saxo Bank offers tiered corporate accounts to suit various business needs. The Classic account requires a €/$/£100,000 deposit, providing tight spreads and 24/5 customer support. The Platinum account, with a €/$/£200,000 deposit, offers up to 30% lower trading costs and prioritized support. The VIP account, for deposits of €/$/£1,000,000, delivers the best trading conditions, expert advice, and exclusive event invitations.

When opening a business investment account with Saxo, the approval process generally takes about a week, assuming all required documents are provided. These documents typically include:

• Memorandum and Articles of Association;
• Certificate of Incorporation;
• Proof of the company’s business address, if it differs from the registered address (such as a recent company bank statement or utility bill issued in the company’s name);
• The latest financial statement;
• Group structure diagram (only necessary for entities within complex group structures).

Additionally, for every beneficial owner with a 25% or greater stake in the company, as well as for each company director, the following documents will be required:

• Passport;
• Proof of residency—this should be a utility bill dated within the last three months, showing the applicant’s name and matching the address on the application.

Interested in knowing more about Saxo? Read our Saxo Review.

3. Lightyear business account

Lightyear is a European investment app that operates via Lightyear Europe AS, authorized and regulated by the Estonian Financial Supervision Authority (EFSA), with clients’ assets covered up to €20,000.

The business accounts are only available in the UK, Estonia and Hungary and can be opened by freelancers and sole directors in addition to small, medium and large companies. You can invest in Money Market Funds (MMFs) – low-risk, highly liquid and AAA-rated investments -, interest on uninvested cash, over 3,500 stocks and ETFs, and direct access to a Legal Entity Identifier (LEI) registration for £40 + VAT. Besides, it automatically fulfils a W-8BEN-E form to get a reduced tax rate on dividends from US stocks.

Lightyear offers commission-free trading for ETFs, and stock trades are capped at €/$/£1 per order. The platform also features a competitive 0.35% fee for currency conversion, which can be minimized through their multi-currency account in EUR, GBP, and USD.

Additionally, Lightyear provides some of the highest interest rates on uninvested cash in EUR, USD, and GBP.

However, Lightyear offers a limited range of products (no options, commodities, or Forex), and does not include a demo account.

Interested in knowing more about Lightyear? Read our Lightyear review.

4. eToro corporate account

Another excellent trading platform for corporations is eToro, an international broker with over 30 million users trading a variety of assets, including stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.

The platform offers over 3,000 financial instruments, including stocks, ETFs, and ready-made investment portfolios (Smart Portfolios). It features an intuitive interface suitable for beginners, with advanced options like one-click trading and a stop-loss feature. The eToro Research Tab, powered by TipRanks, provides valuable insights for informed decision-making.

While eToro is beginner-friendly, it may not be ideal for day traders or experienced investors due to relatively high spreads and a $5 withdrawal fee. Despite these drawbacks, eToro remains a robust option for investors looking for a versatile trading platform.

Interested in knowing more about eToro? Read our eToro review.

What is a business brokerage account?

A business brokerage account allows entities like Corporations, LLCs, and Partnerships to access a wide range of financial products, including stocks, ETFs, bonds, futures, and cryptocurrencies.

While these accounts are similar to those for individual investors, they often feature higher minimum deposits, lower spreads, and more tailored customer support. If you own a business, you can use these accounts for tax benefits, portfolio diversification, and the protection offered by limited liability.

You will need an “LEI” code – what is that?

“LEI” stands for “Legal Entity Identifier,” a unique 20-character code that identifies entities like limited companies, trusts, or any organization involved in financial market transactions. Any legal entity engaged in financial activities is required to obtain an LEI.

For example, if a company is investing in stocks, ETFs, or derivatives, it must have an LEI. This identifier ensures that transactions are linked to a recognized and verified entity, which enhances transparency and reduces the risk of fraud.

Several websites offer LEI registration, with “LEIservice” being one of the more affordable options.

In summary, the LEI is a mark of transparency and reliability in the financial markets. Whether you’re a multinational corporation, a local business, or a charity, having an LEI is essential for participating in financial transactions.

Documents needed to open a business account

When applying for a business account with any of the providers listed, you’ll need to provide certain documents. Below is a general overview, though your broker might request additional information. Typically, all documents should be recent, ideally within the last six months.

You’ll be asked for:

• The company’s name and registration number;
• The primary business address;
• Tax residency information and tax identification number;
• A description of your business activities, including the products or services you offer and the countries in which you operate;
• Details about the source of funds and the nature of the transactions that will be made through the account;
• Additionally, if you plan to trade US-based stocks, you’ll need to fill out the W-8BEN-E form.

Bottom line

While Trade Republic is a strong option for retail investors, it currently does not offer business accounts. It’s crucial to select a platform that aligns with your business’s investment strategy, regulatory needs, and support expectations.

Consider exploring the alternatives we’ve highlighted in this article to find the best fit for your company’s financial goals:

• Interactive Brokers is our best recommendation overall.
• Saxo for professionals seeking diversification.
• Lightyear for maximizing interest on uninvested cash.
• eToro for crypto and social trading.

Remember, the best platform will depend on your specific business requirements. We hope this guide helps you make an informed decision. If you have any questions or need further assistance, feel free to reach out to us – we’re here to help!

Happy investing and continued success in your business!