The fintech Trade Republic arrived in Spain a month ago and has already exceeded all forecasts, according to its head in the country, Kintxo Cortés. This firm has a bank token in Germany, but has started to operate as a neobróker. Its objective is to grow and expand its product offering in Spain, after raising 737 million euros in its last round of financing in May, bringing its valuation to 4.1 billion. Youtubers have also helped this success.
This investment platform has been in Spain for a month. How was its premiere?
We are overwhelmed. We have been more successful than in Germany, home to Trade Republic, after its launch, and where we already have a million customers in two months. Due to company policy we cannot give the number of users in Spain, but it has exceeded all forecasts.
What is the reason for this reception, taking into account the strong competition that exists in investment platforms and in fintech?
As we have a bank license, we can expand our products, especially savings, but we will continue without commissions
In Spain there is a hunger to invest, especially among the 25 to 35 age group, although our clients are of all ages. Traditional banks give practically nothing for deposits, interest rates are negative and there are uncertainties about the future of pensions. All this makes the Spanish client look for new alternatives for their savings, and if it is offered by a simple-to-use neobróker, without commissions, except for the euro that must be paid for each purchase of shares that is made, and being very transparent because it is logical that they sign up to Trade Republic. Remember that there are 800,000 million euros of unpaid savings in banks. We want to democratize investment in the Stock Market and savings. 50% of our clients had not invested in the Stock Market before. In addition, we offer to invest mainly in the United States Stock Exchange, something that in Spain is not very common for the small investor.
He has a banking license. That means you can do all kinds of banking.
Yes. Based in Berlin, Trade Republic is a licensed online banking platform specializing in investment services and capital markets. It is supervised by the German Central Bank (Bundesbank) and BaFin, the German supervisory authority. At the moment, we are dedicated to investment, but we can expand our products, especially in savings.
Do you offer cryptocurrencies?
There is competition, but of course, there are 800,000 million euros without remuneration in the banks
We do not offer investment in cryptocurrencies, but we will do something once the regulation is clarified. In Spain there is a lot of appetite for virtual currencies.
Now it gives new users a share valued at up to 200 euros of one of the largest companies in the world, including companies such as Tesla, Apple or Netflix … And with the hook of operating without commissions. Is this a promotion?
We do not intend to charge fees for trading with our platform. And it is not in our objectives to stop giving away shares. It is not a promotion. We do not understand why the Spanish have to pay more to invest than the Germans or the French. In Spain, in particular, clients must pay up to € 20 to invest in European or North American stocks. Our priority is to position Spaniards at the same level as other Europeans.
Are they trading at a loss?
No, no, not at all. With the euro that we charge the client each time he buys shares, we cover the brokerage costs. Five people work for Spain. In total we are 500 employees in the neobróker. We operate, for now, in Germany, Austria and France, as well as in Spain. We have few expenses.
Do you intend to go public or carry out another new round of financing?
No. In May we made an important round of financing for 737 million euros to grow, among other countries in Spain.
What is the offer of investment products?
We offer 9,000 products, of which 7,500 are stocks and 1,500 are ETFs.