Fintech High Flyer
As rises go, Trade Republic’s truly deserves the sobriquet “meteoric.”
The Berlin start-up, whose investment app is currently flavor of the month, started off in 2015in a 12-square-meter office – by the time the United States closed its borders this March, it took in EUR 62 million in venture capital.
With ordinary people looking around for ways to invest their money amidst the coronavirus crisis, more and more are turning to Trade Republic’s broker app, which allows users to open depots via smartphone and buy and sell stocks, ETFs and derivatives commission-free.
“We realized that investing had to be as simple as ordering from Zalando or Amazon,” CEO Christian Hecker told the German edition of Business Insider magazine. “Many young people think it makes sense to invest in the capital market but find it too complex and elitist. That’s why right from the start, we focused on commissions.”
In contrast to many other online brokers, Trade Republic earns its money from payments from the markets themselves, not customer fees.