Trade Republic wins big with new ECB license

Berlin-based stock trading and savings platform, Trade Republic, has achieved a significant milestone by securing a full EU banking license from the European Central Bank (ECB). This development positions Trade Republic to broaden its product range, enabling it to offer essential banking services such as deposits and lending to its customer base across Europe.

Founded in 2015 by Christian Hecker, Thomas Pischke, and Marco Cancellieri, Trade Republic has quickly risen to prominence and proudly labels itself as “Europe’s largest savings platform.” The platform’s mobile app facilitates seamless trading and investment in a variety of financial instruments, including bonds, derivatives, and cryptocurrencies. Additionally, Trade Republic provides users access to fractional stock and ETF savings plans, catering to a diverse range of investment preferences.

With the newly acquired EU banking license, Trade Republic is poised to enhance its financial services offerings, providing customers with a more comprehensive suite of banking solutions. The expanded capabilities will allow the platform to meet a broader range of financial needs, solidifying its position as a go-to platform for investors across the continent.

Trade Republic currently boasts over two million customers spread across 17 European markets, underscoring its pan-European footprint. The platform’s success is rooted in its user-friendly interface, accessibility, and the ability for users to trade and invest in various financial instruments through a single platform.

Christian Hecker, one of Trade Republic’s co-founders, expressed his enthusiasm about the news, stating that obtaining the full banking license from the ECB “opens up a new chapter for Trade Republic.” He emphasised that the platform’s core focus remains unchanged, prioritising the easy, secure, and affordable accumulation of wealth for its users.

In addition to expanding its product offerings, Trade Republic outlined plans to strengthen its corporate governance structure. The company aims to achieve this by creating an experienced audit committee, aligning with best practices in financial services and underlining its commitment to robust oversight and compliance.

The achievement of a full EU banking license comes on the heels of Trade Republic’s successful fundraising efforts. In June 2022, the platform raised €250 million in a Series C extension, reaching a post-money valuation of €5 billion. This funding injection provides Trade Republic with the financial foundation to execute its expansion plans and further innovate in the competitive fintech landscape.

As Trade Republic continues to evolve and broaden its financial services, the EU banking license serves as a testament to its commitment to providing diverse, user-centric solutions to investors in Europe. The platform’s journey reflects the broader trends in the fintech industry, where firms are increasingly seeking comprehensive licenses to offer a more integrated and extensive range of financial services to their growing customer bases.