Widely known in Germany, Trade Republic has attracted the attention of several UK investors, offering high interest on uninvested cash of 2.50% (euros), a slick and modern app, and low commissions.
Want to know if Trade Republic is available in the UK, the company’s expansion plans, and the alternatives available for British investors? We’ve got you covered!
Is Trade Republic available in the UK? 🇬🇧
No, Trade Republic is not yet available in the UK.
Trade Republic is investing in its European expansion, however the company hasn’t shared publicly any plans to expand to the UK.
We have tried to open an account and the UK was presented as one of their unsupported countries:
Trade Republic is not available in the UK
Where is Trade Republic available? 🌎
Currently, Trade Republic is available for 17 European countries: Belgium, Estonia, Finland, Greece, Ireland, Latvia, Lithuania, Luxembourg, Portugal, Slovakia, Slovenia, Germany, France, Italy, Spain, the Netherlands and Austria.
Trade Republic Alternatives in the UK
- Interactive Brokers: Best for experienced investors
- eToro: Best for commission-free investing and social trading
- Trading 212: The closest alternative. New users get a free share
- InvestEngine: Cheapest ETF broker
When investing, your capital is at risk.
When investing your capital is at risk.
Moving to the UK: What Happens to Your Trade Republic Account?
For investors moving from Germany or another supported country to the UK, a common concern arises: what happens to your investments with Trade Republic? Since Trade Republic is not registered in the UK, those who become tax residents in Britain will find that Trade Republic can no longer offer them services as retail investors due to regulatory restrictions post-Brexit.
Here’s What You Need to Know:
- Once you become a UK tax resident, Trade Republic may not be able to serve you due to the lack of registration or passporting into the UK financial system.
- Investors are advised to choose a UK 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 UK brokerage account first to ensure a smooth transition.
- For those planning to stay in the UK, opening an Individual Savings Account (ISA) could provide tax-free savings and investing. However, if you might leave the UK in the future, consider the implications, as the benefits of an ISA may vary depending on your subsequent country of residence.
Conclusion
If you want to open a Trade Republic account from the UK, 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
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.
