European digital broker Trade Republic has reached a major milestone, reporting over €100 billion ($109 billion) in assets under management (AUM) as its customer base doubled to 8 million within the past year.
Rapid Growth and Regional Expansion
Based in Berlin, Trade Republic has expanded its operations with the establishment of branches in France, Spain, and Italy. This move enhances its local presence and introduces tailored banking services in these markets, including commission-free savings plans and domestic current accounts with national IBANs for French customers.
The company’s French operations alone now account for over 1 million customers, highlighting the success of its localized approach. This growth comes a year after Trade Republic celebrated reaching 4 million users and €30 billion in AUM.
Sustained Profitability Amid Growth
In 2024, Trade Republic maintained profitability while offering competitive rates, including a 3% interest on customer deposits, aligning with the European Central Bank’s benchmark rate. The fintech’s international customers now represent more than one-third of its user base, contributing to its strong performance.
Co-Founder Highlights the Rise of New Savers
Christian Hecker, co-founder of Trade Republic, emphasized the growing trend of individual financial empowerment across Europe.
“A new generation of savers is emerging across Europe, taking charge of their own finances. Many of these individuals are starting their financial journey with Trade Republic. In just six years, our customers have collectively saved over €100 billion with us, showcasing the scale and potential of this movement,” Hecker said.
Innovative Services and Future Ambitions
Trade Republic operates in 17 European countries, offering a wide range of services, including savings plans, fractional trading of shares and ETFs, bonds, derivatives, and cryptocurrency investments. The company’s infrastructure investments in 2024 include the development of national bank branches and an in-house securities settlement system, positioning it as a pioneering European financial platform.
“Our vision is to become the first truly European bank, delivering the most attractive local banking and savings products in every market,” added Hecker.
Overcoming Past Challenges
Despite its recent success, Trade Republic faced criticism four years ago for imposing restrictions on customers’ ability to purchase trending meme stocks like GameStop and AMC. This decision, echoing actions by U.S.-based Robinhood, sparked backlash from investors and traders at the time.
With a growing customer base and robust infrastructure, Trade Republic is poised to continue its mission of empowering savers and investors across Europe.
