By Nina Jetter
We are doubling down on the FinTech space with our newest addition to the Project A family: Trade Republic. Europe’s first mobile-only and commission-free broker that sets out to disrupt the broker industry as we know it today.
We very much look forward to working with the founders Christian Hecker, Thomas Pischke and Marco Cancellieri on their ambitious mission.
A beautiful and unmatched product, a huge market potential and highly driven founders are just a few of the reasons why we decided to invest in Trade Republic’s Series A alongside our friends from Creandum.
Tap, tap, trade at zero commission
One of the guiding principles at Trade Republic is simplicity. Trade Republic offers an easily accessible, fast and convenient tool for everyone to invest into capital markets meeting high quality standards. As of today most players add unnecessary complexity to the order process, it takes on average 12 clicks to buy or sell an asset (be it a stock or ETF, etc.). At Trade Republic a trade is just 3 clicks away: “Tap, tap, trade” via their intuitive mobile app.
While this itself already is quite a revolution in the broker market, there is another twist to the product offering that is unique: their transparent pricing! While most brokers hide their costs in complex and opaque pricing schemes, each trade at Trade Republic is at zero commission and only costs €1 external settlement fee. Trade Republic therefore frees its users from expensive order commissions, marking a new era for trading thanks to their innovative banking technology and strong partnerships with renown institutions like HSBC and solarisBank. And there is even more to come: more asset classes, more app features and more geographies!
Europe with great potential to boost number of individual shareholders
In the US, about half of American adults say they have money invested in the stock market. In Europe, this figure is still significantly lower with e.g. currently only ~10M Germans (less than 15% of German adults) investing in stocks directly or indirectly via ETFs, etc. Especially, in a low interest rate environment, we see investments direct into stocks or indirect via ETFs to be essential for every private investor to have a chance for a considerable return. Therefore, there is great potential for a significant increase in the number of shareholders in Germany and Europe overall. This change can be driven by a younger generation making first steps with stock trading but also via a more mature cohort of parents and role models. Trade Republic is a product for all of them — for the trader, the saver and the investor, for the first timer and the experienced trader. Due to their unmatched low price and fast accessibility of the investment opportunity, Germany could finally become a “Trade Republic”.
Christian, Thomas & Marco — founders that live for their product
3 pioneers with a clear vision and a growth mindset. Real product pickers and tech enthusiasts at heart, who execute with speed and want to provide mobile, easy and free stock market access and investing for everyone at the quality and security of a German bank.
We are very much looking forward to working with them to make their vision come true!