Trade Republic: Spanish IBAN, €1 fees and tax concerns

Trade Republic now issues Spanish IBANs, user reports

One user opens an account, buys their first gold ETF, and finds the process "very simple." Another has kept money idle for two years earning interest without issues. A third encounters fine print: non-existent customer support, no phone number, and a chatbot that sometimes responds. Trade Republic, the German neobroker supervised by BaFin with deposits covered up to €100,000 by the German deposit guarantee fund, has shifted from promise to uncomfortable reality: cheap, regulated, but with terms starting to trouble many.

Is Trade Republic reliable and regulated?

Yes. The platform operates under the supervision of the German financial authority (BaFin) and the Bundesbank, with cash balances protected by the German deposit guarantee fund up to €100,000 per holder. It is a consolidated European neobroker with millions of clients and no known major scandals. The lingering doubt concerns the omnibus account structure. One participant warns that the German IBAN corresponds to a single multi-user account, suspecting the guarantee limit might apply to all depositants collectively. Another cites EU directives: compensation is per depositor, not per account.

Trade Republic fees: €1 per trade and variable spread

The pricing is simple: €1 per buy or sell, with no custody or management fees. Recurring investment plans are commission-free, and the card returns 1% of spending. The issue isn't the fixed price, but the variable one. Some warn that spreads can be surprisingly high depending on the asset. For a novice buying a gold ETF, the process is easy; for frequent traders, real costs depend on the instrument.

Savings account interest: down from 4% to 2.02%

The rate has dropped from the initial 4% to 2.02%, though it now applies to unlimited capital. Competition comparisons are tight: N26 pays 2.25% but only up to €50,000, while VW Bank offers 2.5% for 12 months on unlimited capital. XTB reduces remuneration to 1.25% APR in euros after its 90-day promotion. The question remains: are these the best available offers?

Spanish IBAN and Form 720

The arrival of the Spanish IBAN is the most celebrated news. One participant confirms they already have it, avoiding the need to file Form 720 (Spain's foreign asset declaration), which they have been filing for two years. Another registers and receives a German IBAN, unsure if they can change it. The advantage is clear: with a Spanish IBAN, the obligation to declare foreign accounts disappears. The disadvantage for those still holding a German IBAN is that Form 720 remains mandatory.

Customer service and missing tax reports

The weak point. A two-year-old client describes virtually non-existent support: no phone, unanswered emails, and a semi-bot chat that works intermittently. "If you have any problem, good luck," they summarize. Additionally, they no longer provide the tax report for Form 720; calculations must be done manually. Another warning: stock sales were reported to the Spanish Tax Agency (Hacienda) in box 031 instead of the correct box 0328. The result is similar, but the concept differs.

Trade Republic partners with Apollo and EQT for private equity

The platform announced a partnership with Apollo and EQT to offer private equity investments starting at €1, promising a 12% return. This figure exceeds the S&P 500 average and has raised eyebrows. For conservative profiles, this product adds risk to a portfolio already exposed to market volatility. For those seeking higher yields, it is an entry point with just €1.

The German deposit guarantee covers €100,000. If the pessimistic interpretation of the omnibus account is confirmed, that limit might be shared among all depositants. No one has proven this is the case. No one has disproven it either.