Widely known in Germany, Trade Republic has attracted the attention of several Canadian investors, offering high interest on uninvested cash of 4% (euros), a slick and modern app, and low commissions.
Want to know if Trade Republic is available in Canada, the company’s expansion plans, and the alternatives available for Canadian investors? We’ve got you covered!
Is Trade Republic available in Canada? 🇨🇦
No, Trade Republic is not yet available in Canada.
Trade Republic is investing in its European expansion, however the company hasn’t shared publicly any plans to expand to Canada.
We have tried to open an account and Canada was not presented as one of their supported countries:
Trade Republic is not available in Canada
Where is Trade Republic available? 🌎
Currently, Trade Republic is available for 17 European countries: Austria, Belgium, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Trade Republic Alternatives in Canada
- Interactive Brokers: Best overall
- Saxo Bank: Best for experienced investors
- Wealthsimple: The closest alternative. Best for beginners
Moving to Canada: What Happens to Your Trade Republic Account?
For investors moving from Germany or another supported country to Canada, a common concern arises: what happens to your investments with Trade Republic? Since Trade Republic is not registered in Canada, those who become tax residents in Canada will find that Trade Republic can no longer offer them services as retail investors due to regulatory restrictions.
Here’s What You Need to Know:
- Once you become a Canadian tax resident, Trade Republic may not be able to serve you due to the lack of registration or passporting into the CAD financial system.
- Investors are advised to choose a CAD broker to facilitate a “free” movement of their portfolio. This means transferring your investments without having to sell them, ensuring you can maintain your holdings without incurring immediate tax liabilities.
- Trade Republic does offer a migration service for transferring out investments. It’s recommended to open a Canadian brokerage account first to ensure a smooth transition.
Conclusion
If you want to open a Trade Republic account from Canada, you’re in bad luck: it is not possible. However, we believe any of the above mentioned brokers will be good choices.
Whether you value security and reputation or want a commission-free trading platform, the alternatives presented should be a good starting point. Explore their websites and decide for yourself!
If you haven’t found a match, you can still look at our comparison of online brokers available by country.
FAQs about Trade Republic
What is Trade Republic?
Founded in 2015, Trade Republic is an investment app that allows users to invest in Stocks, ETFs, Bonds, Derivatives, and Crypto (+Saving Plans that include all these assets). It has over 4 million clients, which have over 35 billion in assets under management. Trade Republic is regulated by BaFin and Bundesbank. In the case of bankruptcy, up to €100,000 in cash is protected by the deposit guarantee scheme and your shares are held at the HSBC Bank custodian in Germany.
How does Trade Republic make money?
As economists like to say, “There is no such thing as a free lunch”. Trade Republic is still making money through payment for order flow (PFOF), which consists of paying brokerages to route orders to market makers for trade execution, thus creating a potential conflict of interest between the brokerage and the customer. According to the latest update, “Payment-for-order-flow agreements only accounted for about a third of Trade Republic’s overall income” (our bold). Since the EU plans to ban PFOF from 2026 onwards, Trade Republic must adapt and focus on other income sources, namely:
- Securities fending: Your stocks or ETFs are most likely not parked in a single place. Usually, brokerage firms lend your securities in exchange for an interest rate. Third parties borrow securities for several reasons, such as hedging a position, arbitrage an opportunity, creating a structured product, or shorting selling;
- Transaction fees: Trade Republic charges no trading fees (apart from external settlement costs), so this might be an option to increase their revenues in the future;
- Withdrawal fees: For withdrawals below €100, it charges €1;
- Among others: Registration annual meeting, etc.
Pedro is passionate about finance, marketing, and technology. He is a growth manager at several online projects and a former digital marketer for a fintech company.
