{"id":299601,"date":"2025-02-27T09:18:00","date_gmt":"2025-02-27T09:18:00","guid":{"rendered":"https:\/\/northern.finance\/uncategorized\/trade-republic-disadvantages-is-this-broker-worth-it\/"},"modified":"2025-07-07T19:43:55","modified_gmt":"2025-07-07T19:43:55","slug":"trade-republic-disadvantages","status":"publish","type":"post","link":"https:\/\/northern.finance\/en\/review\/trade-republic-disadvantages\/","title":{"rendered":"Trade Republic disadvantages \u2013 is this broker worth it?"},"content":{"rendered":"\n<p>Since its inception, <strong>Trade Republic<\/strong> has quickly <strong>become <\/strong> <strong>a<\/strong> <strong>popular online broker<\/strong>, attracting mainly young and price-conscious investors. With its <strong>user-friendly app<\/strong> and innovative technology, the broker offers <strong>low fees <\/strong> and access to popular financial products, from stocks and ETFs to derivatives and cryptocurrencies. <strong>However, there are some Trade Republic disadvantages. <\/strong><\/p>\n\n\n\n<p>Although the broker is praised for its <strong>low-cost<\/strong> <strong>services <\/strong> and <strong>ease <\/strong> <strong>of use<\/strong>, there are aspects that you, as an investor, should be aware of. From <strong>technical difficulties<\/strong> and <strong>limited customer service<\/strong> to <strong>legal<\/strong> <strong>challenges <\/strong>and <strong>restricted trading options<\/strong>, you will learn everything you need to know.<\/p>\n\n\n\n<div>\n<div class=\"wp-block-group nf-info-boxen\">\n<div class=\"wp-block-group__inner-container\">\n<p class=\"nf-boxen-p-gut-zu-wissen\"><strong>In brief:<\/strong><\/p>\n<ul class=\"infobox-ul\">\n<li class=\"infobox-li\">Low order fees, but higher spreads due to limited trading venues<\/li>\n<li class=\"infobox-li\">Current lawsuits regarding misleading advertising and lack of transparency<\/li>\n<li class=\"infobox-li\">Limited product selection: no options, futures or CFDs tradable <\/li>\n<li class=\"infobox-li\">Customers report problems with customer service and technical issues.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Current legal disputes<\/h2>\n\n\n\n<p><strong>Trade Republic<\/strong>, once celebrated as an innovation driver in the German financial market, is increasingly coming <strong>under fire<\/strong>. In addition, the <strong>neo-broker<\/strong> is currently facing <strong>lawsuits <\/strong> on several counts. Many investors are therefore considering a comparison between <strong><a href=\"https:\/\/northern.finance\/en\/review\/scalable-capital-vs-trade-republic\/\" data-type=\"post\" data-id=\"242400\">Trade Republic and Scalable Capital<\/a> or <a href=\"https:\/\/northern.finance\/en\/review\/trade-republic\/\" data-type=\"post\" data-id=\"244552\">Trade Republic<\/a> <\/strong>in order to make an informed <strong>decision<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"223\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1-1024x223.png\" alt=\"\" class=\"wp-image-299817\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1-1024x223.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1-300x65.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1-768x167.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1-1536x335.png 1536w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-1-1.png 1862w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong>Consumer association sues Trade Republic<\/strong> Source: <a href=\"https:\/\/www.tagesschau.de\/wirtschaft\/verbraucher\/trade-republic-zinsen-klage-verbraucherzentrale-100.html\" target=\"_blank\" rel=\"noopener\">tagesschau.de<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">Lawsuits for misleading advertising <\/h3>\n\n\n\n<p>Trade Republic is facing several lawsuits that look at key aspects of its business practices, especially how it advertises its financial products. <\/p>\n\n\n\n<p>One critical issue was the <strong>advertising of current accounts <\/strong> <strong>promising<\/strong> <strong>high<\/strong> <strong>interest <\/strong>rates <strong>without<\/strong> adequately <strong>highlighting<\/strong> the <strong>variability<\/strong> of these rates or the associated <strong>risks<\/strong>.<\/p>\n\n\n\n<p>Such practices <strong>were deemed<\/strong> <strong>misleading <\/strong>by consumer protection organisations and led to legal disputes.<\/p>\n\n\n\n<p>This information can usually be found in <strong>publicly<\/strong> <strong>available court documents<\/strong> and <strong>press releases<\/strong> from <a href=\"https:\/\/www.verbraucherzentrale-bawue.de\/pressemeldungen\/presse-bw\/klage-gegen-trade-republic-103926\" target=\"_blank\" rel=\"noopener\"><strong>consumer protection associations<\/strong><\/a>, which report on these cases on their websites and in their newsletters.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grunde-fur-die-Klage-1024x569.png\" alt=\"\" class=\"wp-image-299822\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grunde-fur-die-Klage-1024x569.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grunde-fur-die-Klage-300x167.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grunde-fur-die-Klage-768x427.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grunde-fur-die-Klage.png 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">Impact on customer confidence<\/h3>\n\n\n\n<p>These legal problems <strong>can seriously undermine customer confidence.<\/strong> In the financial sector, transparency is one of the most important factors in building long-term customer loyalty.  <\/p>\n\n\n\n<p>As soon as investors get the impression that a broker is not communicating fully or is even spreading misleading information, <strong>uncertainties <\/strong>arise that <strong>can lead to<\/strong> investors leaving.<\/p>\n\n\n\n<p>What makes this particularly problematic is that financial investments are not just about numbers, but also about emotional security. Many people trust their brokers to act in their best interests and protect them from potential risks.  <\/p>\n\n\n\n<p>However, if it turns out that <strong>important details<\/strong> <strong>have been concealed<\/strong> or <strong>inadequately <\/strong> <strong>communicated<\/strong>, such as interest <strong>rates or fee<\/strong> structures, this can have negative consequences for the broker&#8217;s reputation.<\/p>\n\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Previously limited accessibility and quality of support<\/h2>\n\n\n\n<p>Although Trade Republic is known for its innovation and low fees, <strong>customer service<\/strong> has often been perceived as <strong>a weak point.<\/strong> <\/p>\n\n\n\n<p>Customer support was primarily available via email, which is insufficient in today&#8217;s fast-paced trading world. In urgent cases where quick decisions are required, this limitation can lead to significant delays and associated frustration.  <\/p>\n\n\n\n<p>Many modern online brokers already offer <strong>solutions such as live chats<\/strong> or even <strong>24\/7 hotlines<\/strong> to guarantee their users immediate support. <\/p>\n\n\n\n<p>However, Trade Republic has since responded to user feedback and significantly improved <strong>the availability and quality of its support. Chat support is now available to you as a user. <\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical problems with the neo-broker Trade Republic<\/h2>\n\n\n\n<p>Technical stability is essential for an online broker, because even the best trading conditions and lowest fees are of little use if the platform does not work when it matters most. <\/p>\n\n\n\n<p>Users have reported technical issues in the past that have affected the trading experience. These issues range from <strong>app crashes<\/strong> and <strong>disconnections <\/strong>to <strong>extremely slow<\/strong> <strong>loading times<\/strong> and <strong>faulty order execution.<\/strong><\/p>\n\n\n\n<p>In volatile market phases, this can have fatal consequences, as users are unable to place their trades in time or manage their positions.<\/p>\n\n\n\n<p>What is particularly problematic is that these disruptions did not occur only sporadically, but were reported frequently during <strong>times of crisis <\/strong>or <strong>high trading activity<\/strong>. Online forums and review sites such as Trustpilot and Reddit contain numerous reports from users <strong>who were unable to access their accounts during important market movements.<\/strong><\/p>\n\n\n\n<p>In such moments, platform failure can mean that investors <strong>suffer<\/strong> <strong>losses<\/strong> that they could have avoided by adjusting their strategy in good time.<\/p>\n\n\n\n<p><strong>However, these reports are becoming increasingly rare. This shows that the neo-broker is responding to this issue and has improved the reliability of its infrastructure.  <\/strong><\/p>\n\n\n\n<p>The <strong>desktop version<\/strong> was also a long time coming, but it is now available. While many brokers offer both an app and a web platform, Trade Republic has long relied on its mobile app.  <\/p>\n\n\n\n<div>\n<div class=\"wp-block-group nf-info-boxen-blau\"> \n<div class=\"wp-block-group__inner-container\"> <p class=\"nf-boxen-p-lesetipp\"><strong>Good to know: <\/strong><\/p> \n<p class=\"nf-boxen-p\">Trade Republic is a good starting point for beginners and passive savings plans. However, the neo-broker quickly reaches its limits when things get more demanding.  <\/p> \n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Further disadvantages of Trade Republic: Platform limitations<\/h2>\n\n\n\n<p>An online broker must not only offer low fees and a simple user interface, but also a comprehensive trading infrastructure to meet the needs of all investors. Unfortunately, this provider reaches its limits here.  <\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\">No direct access to trading venues such as gettex and Xetra<\/h3>\n\n\n\n<p>As a Trade Republic user, you have another disadvantage: <strong>no direct access<\/strong> <strong>to <\/strong>important stock exchanges such as <strong>gettex <\/strong>and <strong>Xetra<\/strong>. This means that you cannot execute your securities orders via these established trading platforms, but <strong>only <\/strong>via <strong>Trade Republic&#8217;s partner Lang &amp; Schwarz. <\/strong><\/p>\n\n\n\n<p>This may be problematic for you as an investor, as gettex and Xetra are known for their high liquidity, tight spreads and a wide range of tradable securities.<\/p>\n\n\n\n<p>If you could trade on a platform such as gettex or Xetra, you might get <strong>better<\/strong> <strong>prices <\/strong> and a <strong>wider selection <\/strong>of <strong>financial products<\/strong>.<\/p>\n\n\n\n<p>The lack of this access limits your trading opportunities, especially if you want to use special order types or benefit from a wide range of market offerings. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">No transfer of cryptocurrencies to other wallets<\/h3>\n\n\n\n<p>If you purchase <strong>cryptocurrencies<\/strong> via Trade Republic, you should <strong>be aware that you cannot transfer them to an external wallet.<\/strong> Many crypto investors place great importance on managing their digital assets in their own wallets to ensure maximum security and control.<\/p>\n\n\n\n<p><strong>With Trade Republic, however, you are forced to keep your cryptocurrencies within the platform. This is a clear disadvantage.  <\/strong><\/p>\n\n\n\n<p>This means that you <strong>do not have full control over your coins <\/strong> and cannot use them for decentralised financial applications or other blockchain projects outside of the broker, for example. <\/p>\n\n\n\n<p>This restriction makes the platform less attractive to many crypto enthusiasts. While other brokers and crypto exchanges now allow transfers to external wallets, Trade Republic falls short of expectations in this regard. <\/p>\n\n\n\n<p>Would you like to learn more about cryptocurrencies? Then you will definitely find the article on <strong><a href=\"https:\/\/northern.finance\/en\/etf\/top-crypto-etfs-in-comparison\/\" data-type=\"post\" data-id=\"6473\">crypto ETFs<\/a><\/strong> interesting.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Restricted day trading and scalping options<\/h3>\n\n\n\n<p>If you are an active <strong>day trader<\/strong> or pursue <strong>scalping strategies<\/strong>, Trade Republic does <strong>not offer you the ideal environment<\/strong>. The platform has several limitations that make it difficult for day traders and scalpers to trade efficiently. These include:  <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Delayed order execution<\/strong>: Users repeatedly report slight delays in order processing, which is particularly problematic when the market is moving quickly.<\/li>\n\n\n\n<li><strong>No advanced order types<\/strong>: While other brokers offer numerous order types such as stop-limit orders or trailing stops, the options at Trade Republic are very limited.<\/li>\n\n\n\n<li><strong>Technical limitations<\/strong>: During periods of high volatility, users report connection interruptions and limited responsiveness of the app. This can have significant financial disadvantages, especially for scalpers who depend on millisecond-fast reactions. <\/li>\n<\/ul>\n\n\n\n<p>For long-term investors who only trade occasionally, these restrictions are unlikely to be significant. However, for active traders who buy and sell frequently, fast and reliable order execution is essential. <\/p>\n\n\n\n<p>Do you see yourself as a long-term buy-and-hold investor who may only invest passively through a savings plan? Then you should definitely familiarise yourself with the topic of <strong>rebalancing<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">No demo account: An expensive disadvantage for beginners<\/h3>\n\n\n\n<p>If you are new to trading, you will probably want to <strong>test <\/strong>how the <strong>market works<\/strong> and which <strong>strategies<\/strong> are best <strong>suited<\/strong> to you. Many brokers offer this risk-free opportunity to simulate real trading without putting real money at risk.<\/p>\n\n\n\n<p><strong>However, Trade Republic does not offer a demo account<\/strong>. This means that you are <strong>forced to invest with real money <\/strong>right away, without first gaining experience or trying out trading strategies.<\/p>\n\n\n\n<p><strong>This can quickly become a disadvantage and expensive, especially for beginners<\/strong>. Without practice or a basic understanding of market mechanisms, you are likely to make mistakes and lose money unnecessarily.  <\/p>\n\n\n\n<p>If you don&#8217;t have any trading experience, you should think carefully about whether a platform without a demo account is the right choice for you, or whether it makes more sense to start with a broker that offers a risk-free trial.<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\">Limited product selection: These trading opportunities are not available on Trade Republic<\/h3>\n\n\n\n<p>The selection of tradable financial products is one of the most important factors when choosing a broker. A <strong>wide range of asset classes<\/strong> allows you to <strong>optimally <\/strong> <strong>diversify <\/strong> your <strong>portfolio<\/strong>, <strong>minimise <\/strong> <strong>risks <\/strong> and <strong>benefit <\/strong> from <strong>different <\/strong> <strong>market movements.<\/strong>  <\/p>\n\n\n\n<p>Unfortunately, there is another disadvantage here. However, this can be offset with a <strong>European ETF<\/strong> or <strong>real estate ETF<\/strong>, for example, if index funds are sufficient for your diversification needs.<\/p>\n\n\n\n<p>While established providers offer a wide range of financial instruments, <strong>Trade Republic largely limits itself to stocks, ETFs and cryptocurrencies. <\/strong> <\/p>\n\n\n\n<p>This means that you <strong>cannot trade many asset classes<\/strong> that can play an important role in a <strong>diversified portfolio<\/strong>.<\/p>\n\n\n\n<p>This can be a significant disadvantage of Trade Republic, especially for experienced investors who want to invest in financial instruments beyond stocks and ETFs. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Produktauswahl-1024x569.png\" alt=\"\" class=\"wp-image-299827\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Produktauswahl-1024x569.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Produktauswahl-300x167.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Produktauswahl-768x427.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Produktauswahl.png 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h4 class=\"wp-block-heading\">No options trading: No hedging and speculation opportunities<\/h4>\n\n\n\n<p>A major disadvantage for active traders is <strong>the lack of options at Trade Republic.<\/strong> Options are essential for many investors, as they can be used as <strong>hedging instruments<\/strong> against <strong>market movements<\/strong> <strong>and <\/strong> <strong>allow speculation <\/strong>on <strong>price changes <\/strong>using leverage.<\/p>\n\n\n\n<p>Professional traders often use options to <strong>hedge <\/strong>their portfolios against <strong>price losses<\/strong> or to specifically bet on <strong>rising or falling markets.<\/strong><\/p>\n\n\n\n<p>Since Trade Republic does not offer options trading, you are missing out on one of the most important strategies for risk minimisation and speculation. Many competing providers offer options on a wide range of underlying assets, such as stocks, indices or commodities.  <\/p>\n\n\n\n<p>So if you want to use advanced trading strategies, the lack of this feature could be a valid reason to choose another broker.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">No futures: Lack of opportunities for professional traders<\/h4>\n\n\n\n<p>Futures are among the <strong>most important trading instruments<\/strong> for <strong>advanced<\/strong> <strong>investors<\/strong>. They allow you to speculate on <strong>future price movements<\/strong> of <strong>commodities <\/strong>or <strong>currencies<\/strong>, for example.<\/p>\n\n\n\n<p>Many institutional and professional traders use futures to hedge against market fluctuations or to profit from the smallest price movements using leverage.<\/p>\n\n\n\n<p>As Trade Republic does not offer futures, you do not have the option of using these advanced strategies. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">No trading in commodities: Lack of diversification with gold, oil or silver<\/h4>\n\n\n\n<p><strong>Commodities <\/strong>such as <strong>gold<\/strong>, <strong>silver <\/strong>and <strong>oil<\/strong> are <strong>popular<\/strong> <strong>asset classes<\/strong> because they often serve as a <strong>hedge against inflation<\/strong> or as a <strong>crisis currency<\/strong>. Many investors specifically target <strong>commodity markets<\/strong> to <strong>diversify <\/strong>their <strong>portfolios <\/strong>and maintain stable investments in uncertain times.<\/p>\n\n\n\n<p>Unfortunately, Trade Republic does not offer direct trading in commodities. While you can buy gold or silver from other brokers, for example, with this neo-broker you are limited to stocks and ETFs. Nevertheless, fans of <strong>dividend ETFs<\/strong> will get their money&#8217;s worth with Trade Republic.<\/p>\n\n\n\n<p>This represents a major limitation for investors who want to diversify broadly or speculate specifically on commodity prices. The absence of this asset class can be problematic, particularly in times of economic uncertainty, when commodities are often a safe haven. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">No CFDs: No leveraged products for speculative investors<\/h4>\n\n\n\n<p><strong>CFDs (Contracts for Difference)<\/strong> are a <strong>popular financial instrument for traders<\/strong> who want <strong>to <\/strong> <strong>leverage<\/strong> <strong>short-term<\/strong> <strong>market movements<\/strong>. They allow you to speculate on both rising and falling prices without directly owning the underlying asset.  <\/p>\n\n\n\n<p>Many brokers offer a wide range of CFDs on stocks, indices, commodities and cryptocurrencies.<\/p>\n\n\n\n<p>This can be a significant disadvantage for speculative investors who focus on short-term market movements and want to take advantage of high return opportunities through leveraged positions.<\/p>\n\n\n\n<div>\n<div class=\"wp-block-group nf-info-boxen-blau\"> \n<div class=\"wp-block-group__inner-container\"> <p class=\"nf-boxen-p-lesetipp\"><strong>Good to know: <\/strong><\/p> \n<p class=\"nf-boxen-p\">Due to the disadvantages mentioned above, Trade Republic is less suitable for advanced strategies.<\/p> \n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Higher spreads at Trade Republic: Why you pay more than you think<\/h2>\n\n\n\n<p>When choosing a broker, fees play a key role. Many investors pay attention to obvious <strong>costs <\/strong> such as order fees or custody fees, but one factor that <strong>is often overlooked <\/strong>is <strong>spreads<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trade Republic&#8217;s fee structure: cheap or expensive?<\/h3>\n\n\n\n<p>Officially, Trade Republic <strong>does not<\/strong> <strong>charge traditional order fees<\/strong>. Instead, there is only a <strong>flat fee <\/strong>of <strong>\u20ac1<\/strong> per trade to cover external costs. This sounds attractive at first compared to many traditional brokers.<\/p>\n\n\n\n<p>However, the real <strong><a href=\"https:\/\/northern.finance\/en\/save-money\/spread-and-fees-trade-republics\/\" data-type=\"post\" data-id=\"52\">Trade Republic costs<\/a><\/strong> lie elsewhere: orders are executed exclusively via the trading partner Lang &amp; Schwarz, which means that you do not have the option of executing your trades via other stock exchanges.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" width=\"955\" height=\"1024\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-4-955x1024.png\" alt=\"\" class=\"wp-image-299832\" style=\"width:567px;height:auto\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-4-955x1024.png 955w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-4-280x300.png 280w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-4-768x823.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/Grafik-4.png 1248w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><figcaption class=\"wp-element-caption\"><strong>Price overview from Trade Republic <\/strong> Source: <a href=\"https:\/\/traderepublic.com\/de-de?openModal=pricing-scheme&amp;\" target=\"_blank\" rel=\"noopener\">traderepublic.com <\/a><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\">Higher spreads due to restricted trading venues<\/h3>\n\n\n\n<p>A <strong>spread is the difference between the buy and sell price of a security<\/strong>. The narrower the spread, the better for you as an investor, because you buy and sell at almost identical prices. However, when <strong>spreads<\/strong> <strong>are wide<\/strong>, <strong>you<\/strong> <strong>pay<\/strong> <strong>more<\/strong> to buy and get less when you sell, which can <strong>reduce <\/strong>your <strong>return<\/strong>.<\/p>\n\n\n\n<p>Since Trade Republic processes its orders <strong>exclusively through Lang &amp; Schwarz<\/strong>, you do not have direct access to trading venues such as <strong>Xetra or gettex<\/strong>, where tighter spreads are often offered.<\/p>\n\n\n\n<p>This means that for every transaction, you may receive <strong>worse prices<\/strong> than investors who use brokers with access to multiple trading venues. This can have a particularly negative impact in volatile markets or with stocks that are rarely traded.<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\">Why higher spreads affect your returns<\/h3>\n\n\n\n<p>Higher spreads ultimately mean <strong>higher hidden costs<\/strong> for you. Let&#8217;s say you buy a stock with <strong>a spread of 0.3% instead of 0.1%<\/strong>. That may not seem like much at first glance, but over time, those additional costs add up significantly.   <\/p>\n\n\n\n<p>These <strong>differences can have a significant impact on returns over months or years, especially for day traders or investors who buy and sell frequently.<\/strong><\/p>\n\n\n\n<p>Imagine you regularly buy and sell stocks worth \u20ac10,000. <strong>With a spread of 0.3%, you effectively pay \u20ac30 per trade<\/strong>, whereas with a <strong> spread of 0.1%, you would only pay \u20ac10. <\/strong> <\/p>\n\n\n\n<p>If you make <strong>50 trades a year<\/strong>, you pay <strong>\u20ac1,500 in spread costs with Trade Republic<\/strong>, compared to just \u20ac500 with a broker offering lower spreads. <\/p>\n\n\n\n<p>This shows that a broker with wide spreads can be much more expensive in the long run, even if the order fees appear low at first glance. This is a significant disadvantage for your long-term returns.  <\/p>\n\n\n\n<p>However, you can optimise the spread by trading during <strong><a href=\"https:\/\/northern.finance\/en\/review\/trade-republic-trading-hours\/\" data-type=\"post\" data-id=\"290650\">Trade Republic&#8217;s trading hours<\/a><\/strong>. If you invest via a savings plan or only open new positions occasionally, the spread is negligible. This may only be slightly unfavourable for very active traders who trade several times a week.   <\/p>\n\n\n\n<div>\n<div class=\"wp-block-group nf-info-boxen-blau\"> \n<div class=\"wp-block-group__inner-container\"> <p class=\"nf-boxen-p-lesetipp\"><strong>Good to know: <\/strong><\/p> \n<p class=\"nf-boxen-p\">Take spreads into account in your cost calculation to know the actual trading costs.<\/p> \n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: Is Trade Republic the right choice for you?<\/h2>\n\n\n\n<p>Trade Republic offers low fees, <strong>an intuitive app and an easy way to invest in ETFs and stocks.<\/strong> The broker is an attractive choice, especially for <strong>beginners, long-term investors and users of savings plans<\/strong>. Conclusion: Is Trade Republic the right choice for you? <\/p>\n\n\n\n<p>Customer service and <strong>IT infrastructure have now been significantly improved<\/strong>, meaning that technical problems are now rare.<\/p>\n\n\n\n<p>Although <strong>trading via Lang &amp; Schwarz<\/strong> may result in slightly higher spreads, this is of minor importance for long-term investors who invest during trading hours.<\/p>\n\n\n\n<p>Trade Republic may be less suitable for very active traders or <strong>investors who want to implement complex strategies involving options,<\/strong> futures or commodities. <\/p>\n\n\n\n<p>However, if you are investing for the long term, regularly use savings plans or want to trade shares simply and cheaply, you will find a solid and reliable platform here.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FAQ \u2013 Frequently asked questions about the disadvantages of Trade Republic<\/h3>\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-0a50bc69 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height     \" data-faqtoggle=\"true\" role=\"tablist\"><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-441f8ea4 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Why is Trade Republic being sued?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Trade Republic is under legal scrutiny for misleading advertising. In particular, its promotion of 3% interest on credit balances has been criticised, as the variability of interest rates and risks were not adequately communicated. <\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-b830a076 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Why are the spreads higher at Trade Republic?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Since Trade Republic processes its orders exclusively through Lang &amp; Schwarz, there are no alternatives such as Xetra or gettex. As a result, spreads can be somewhat higher, which means higher indirect costs for investors. However, you can avoid this by being active during trading hours.  <\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-09120784 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Which financial products are missing from Trade Republic?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Trade Republic does not offer options, futures, commodities or CFDs. Anyone wishing to actively speculate with leveraged products or hedge against market movements must use other brokers. <\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-4094996c \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Is Trade Republic&#8217;s customer service reliable?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Support has been improved and is now also available via live chat. Is Trade Republic&#8217;s customer service reliable? <\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-a7cb3733 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Are technical problems common at Trade Republic?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Users previously reported app crashes, slow order execution and connection problems, especially during volatile market phases. However, these issues have now been largely resolved. <\/p><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Since its inception, Trade Republic has quickly become a popular online broker, attracting mainly young and price-conscious investors. With its user-friendly app and innovative technology, the broker offers low fees and access to popular financial products, from stocks and ETFs to derivatives and cryptocurrencies. However, there are some Trade Republic disadvantages. Although the broker is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":299699,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[1017],"tags":[],"class_list":["post-299601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-review"],"acf":[],"uagb_featured_image_src":{"full":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile.png",1280,720,false],"thumbnail":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile-150x150.png",150,150,true],"medium":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile-300x169.png",300,169,true],"medium_large":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile-768x432.png",768,432,true],"large":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile-1024x576.png",1024,576,true],"1536x1536":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile.png",1280,720,false],"2048x2048":["https:\/\/northern.finance\/wp-content\/uploads\/2025\/02\/EN-Trade-Republic-Nachteile.png",1280,720,false]},"uagb_author_info":{"display_name":"Aleks Bleck","author_link":"https:\/\/northern.finance\/en\/author\/phil-nf\/"},"uagb_comment_info":0,"uagb_excerpt":"Since its inception, Trade Republic has quickly become a popular online broker, attracting mainly young and price-conscious investors. With its user-friendly app and innovative technology, the broker offers low fees and access to popular financial products, from stocks and ETFs to derivatives and cryptocurrencies. However, there are some Trade Republic disadvantages. Although the broker is&hellip;","_links":{"self":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/299601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/comments?post=299601"}],"version-history":[{"count":15,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/299601\/revisions"}],"predecessor-version":[{"id":302006,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/299601\/revisions\/302006"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/media\/299699"}],"wp:attachment":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/media?parent=299601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/categories?post=299601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/tags?post=299601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}