Trade Republic Launches Bond Trading

[formoverfunction]

https://ffnews.com/newsarticle/tradetec ... d-trading/

Trade Republic solves two challenges of the bond market for its investors: high minimum investments and low liquidity. As the first in Europe, Trade Republic offers 500 liquid government and corporate bonds, in which investments can be made with just 1 euro. As always: no order commission and only a third-party fee of 1 euro fixed per trade.

- I haven't got much time to explore this, but I did find it interesting.

You appear to need to download their app to get much more in the way of understanding. I imagine it will be a fraction holding model, but still an interesting development.

[Alaric]

You appear to need to download their app to get much more in the way of understanding. I imagine it will be a fraction holding model, but still an interesting development.

It's a German online Broker.

UK based investors would be excluded as the FAQ says of opening an account that you have to be a permanent resident of Germany with a tax liability in Germany.

It also says you need a SEPA bank account.

According to Google

Single Euro Payments Area
The Single Euro Payments Area (SEPA) is a mechanism that facilitates the standardisation of electronic payments denominated in euro across Europe. Under SEPA, all bank accounts must be identified by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC).

[formoverfunction]

Thanks. Yeah, appreciate that bit. I was thinking more about the structure of the nominee holding and if they are offering a pan-European portfolio. I suspect at 500 there's a good chance they are.

It's certainly an interesting proposition. I know holding bonds is a more common practice for retail investors in Germany.

There was an article in the FT this week on how European countries are tapping their citizens with bond issues.

In the broad sense, Trade Republic appear to trade assets across 17 countries.