Trade Republic Adds 500 Bonds to Investment Options
Investment app Trade Republic is expanding its lineup of investment options by adding 500 government and corporate bonds. The company claims that this launch is a Europe-first and aims to democratize access to direct bond investing, which was previously limited to banks and financial advisors. According to Christian Hecker, co-founder of Trade Republic, bonds are an important asset class to benefit from high interest rates over the long term, especially in the current environment.
Trade Republic is also making bond trading more accessible by allowing trades with a minimum of just €1 and a third-party fee of €1 per trade. This move makes Trade Republic the first broker in Europe to open up the bond market to retail investors, reducing the reliance on expensive banks and advisors. By introducing this new offering, Trade Republic is taking another step towards making the capital market accessible to a larger number of people.
In addition to bond trading, Trade Republic is increasing the interest it pays on uninvested cash to 4 percent starting from 1 October, up from the current rate of 2 percent. This increase aims to provide a higher return on idle funds held in the investment app.