Summary: Trade Republic, while it does provide cryptocurrency trading services to its German clientele, unfortunately, falls short due to high hidden costs and a limited offering of assets. German investors looking to expand their crypto portfolio should seek out alternative platforms that are regulated by the Federal Financial Supervisory Authority (BaFin) in Germany, and allow for straightforward deposits of Euros (EUR) to commence trading.
After a review of over 20 platforms we recommend Bitpanda. Bitpanda ensures an instant and fee-free Euro deposit from any German bank. It operates under BaFin regulation, offering a secure trading environment. The platform boasts an impressive range of over 3,000 different cryptocurrencies, stocks & ETFs for buying and selling. In addition, Bitpanda also offers the benefit of staking, which enables investors to earn additional income on their investments.
- Fast and free Euro (EUR) deposits from any German bank via SEPA bank transfer, credit card, debit card and more.
- Trade 3,000+ crypto assets, stocks, ETFs and more in one platform.
- Offers crypto staking with up to 25% APY in rewards.
Can I Buy Bitcoin with Trade Republic?
Yes, you can buy over 50 different cryptocurrencies on Trade Republic in Germany including Bitcoin, Ethereum, Polygon, Solana, Avalanche, and many others. That said, the Trade Republic platform is not optimised for cryptocurrencies, which means the product doesn't offer services like staking to earn interest on your assets.
The Trade Republic crypto platform also has high hidden fees that are in the 'spread' of the buy and sell price. This means that you generally pay a higher price to buy a coin, and a lower price to sell a coin. Based on our analysis, the average spread on the Trade Republic crypto platform is around 1% per trade.
How to Buy Crypto with a Trade Republic Alternative
A great alternative to Trade Republic for German investors is Bitpanda. Bitpanda offers a user-friendly platform and accepts deposits from German banks via SEPA, Credit/Debit Card, Bank Transfer, Google Pay, or Maestro. Bitpanda stands as a reliable option due to its broad range of over 3,000 assets and compliance with BaFin regulations, ensuring a secure trading experience.
To commence trading on this reputable platform, simply follow this guide:
- Register on Bitpanda using your email address and create a password.
- Select 'Deposit', then choose 'EUR' as your deposit currency.
- Choose your preferred deposit method and the cryptocurrency you wish to purchase.
- Input the amount you desire to invest and click on the 'Buy' button.
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Trade Republic Crypto Wallet Insurance
One advantage of Trade Republic is that crypto deposits are protected for up to €100,000 per investor. Funds are held in a trust account with SolarisBank AG based in Berlin and are subject to the supervision of the Federal Bank of Germany and the Federal Financial Supervisory Authority (BaFin).
Trade Republic Crypto Fees
Trade Republic, while known for its inexpensive stock and ETF trades, doesn't offer a clear fee structure for cryptocurrency transactions. They charge a nominal €1 fee per executed securities order, but the specifics for crypto trades are murky. Their revenues likely stem from the spread - the gap between a cryptocurrency's buying and selling price. This lack of transparency around their crypto fees is a downside and can lead to unexpected costs for the users.
Moreover, though they do not impose deposit or withdrawal fees for bank transfers, it remains uncertain if the same applies to cryptocurrency transactions. This ambiguity and potential for hidden costs is a significant reason why we recommend seeking out alternative platforms that offer more straightforward and transparent fee structures.
About Trade Republic
Trade Republic is a German online broker that offers commission-free stock and ETF trading. The company was founded in 2015 by Maximillian Tayenthal and Marcus Bittner and is headquartered in Berlin, Germany. Trade Republic and their Crypto platform has raised over $160 million from investors like Accel, DST Global, Ribbit Capital, Project A Ventures, and more.
Trade Republic has over 500,000 customers and offers mobile trading apps for iOS and Android devices. The company is licensed and regulated by the German Federal Financial Supervisory Authority (BaFin). In 2020, Trade Republic launched their cryptocurrency trading product which offers German investors access to buy and sell over 50 different digital assets. However, the product has high hidden fees and a small selection of cryptos when compared to other platforms.
Final Thoughts
In conclusion, while Trade Republic offers a cryptocurrency trading service, its high hidden costs and limited offering of assets make it a less optimal choice for German investors. An ideal alternative is Bitpanda, which provides a broad range of over 3,000 assets, operates under BaFin regulations, and accepts instant, fee-free Euro deposits.
Notably, it also supports staking for added income potential. Despite Trade Republic's advantage of insured crypto deposits up to €100,000, the lack of transparency in its fee structure raises concerns about potential unexpected costs. Therefore, for a secure, user-friendly, and transparent trading experience, German investors are better served by platforms such as Bitpanda.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
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