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I want to show you TradeRepublic - german neobroker and most valuable fintech in germany. Guessing everyone here know's RobinHood, the german equivalent is TradeRepublic. For all of you who are not familiar with those brokers, I will explain everything later.
First of all I want to give you an overview how I invest and why I am not 100% invested into crypto. Splitting my paycheck is the first step I do at the first day of a month. Personaly I split 50% into living and stuff (rent, food, gas, clothes, bills, ..), 20% into holidays and trips, and 30% into savings. Those 30% are split 70% into ETF's and stocks and 30% into crypto-related investments. In conclusion I invest 21% of my paycheck into ETF's and stocks and 9% into crypto. From time to time I do some unregular investments aswell. (By the way: Most ETFs are index funds: that is, they hold the same securities in the same proportions as a certain stock market index or bond market index. They basically represent not only 1 stock but sometimes 1600 stocks all over the world, like the MSCI World.)
I think it's very important to have an overview about your finacial situation aswell as diversification to lower the risk of individual investments. ETF's are a great way to deversificate stocks.
So what's TradeRepublic?
TradeRepublic is a german onlinebroker located in Berlin. It was founded 2015 in Munich and quickly grow to germany's most valuable startup until now. The fintech is valued at 5 billion USD, has 400 employees and over 1 million customers! It's regulated by the BaFin and the Bundesbank, also every account is legal covered by german law up to 100.000€. Like RobinHood the main difference to more common brokers is the price difference and calculation and its mobile only policy. At TradeRepublic you don't pay any fees regarding to account management, deposits and withdraws, .. You just pay 1€ for every trade. In comparison to other common brokers in germany, for example the "Sparkasse" and its online broker, this is pretty good. At the SBroker you would pay 4,99€ + 0,25% of your ordervolume every trade.
And of course there is a way to avoid those 1€ per trade :) At TradeRepublic every savings plan is free of charge. If you want to invest month by month this is the best way to invest your money to take advantage of the dollar cost average effect. You can start a savings plan with 10€ a month and choose nearly every stock and ETF. If you want to invest a larger amount all at once your fee would still be the same as if you want to invest only 100€. Here comes the trick how to avoid it: You can simply set up an savings plan with the desired amount, for example 1000€, let it execute at first of month (or in the middle), and delete the savings plan. Now you saved the 1€ per trade!
Crypto
Of course you can trade cryptocurrencies aswell, but only Bitcoin, Ethereum, Litecoin and Bitcoin Cash and you don't own your keys. Im not a fan of this kind of cryptotrading. Not your keys, not your coins. The spread is pretty high aswell and there is currently no option to start a savings plan with crypto. Besides that, due to high volatility, it's better to seperate crypto and stocks into different platform for a better overview. But that's only my opinion.
Derivates
Aside from crypto and stocks you can trade options/futures aswell. Meaning to short or long stocks, indices, currencies or raw materials. You should only start to trade options if you're familiar with this risks and have enough knowledge. There's a high potentional to loose your money.
In conclusion I still like TradeRepublic and use it personaly only for ETF's and stocks. I like the easy layout of the app, it's not to difficult for beginners and not to reduced for regular investors.
If you're from france, austria or germany you can use my reflink here, and we both get 15€ with your first trade! :) Any questions? Feel free to ask me in the comments!
greeting from germany ntz410
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