Investing in the stock market with Trade Republic

You have probably felt the effect of inflation in your pocket in recent months. If you have savings in the bank, you may have also noticed that the interest on your money, while having increased compared to last year, does not compare with inflation. If you want to know which banks pay you more for your savings, you can check here The Banks with the Highest Interests in the Netherlands 2023.

That’s why investing becomes an interesting option so that your money does not lose value over time and inflation. It is precisely in moments like these, when the stock market has fallen, that it is good to start investing if you haven’t already.

What do I need to start investing in the stock market?

To start investing in the stock market in the Netherlands, you don’t need much. You’ll require a smartphone, internet connection, and an app. In this post, I’ll discuss the Trade Republic app.

Trade Republic is a broker or intermediary that provides access to buying in the stock market. It is a German investment institution supervised by the Deutsche Bundesbank and BaFin (the German Federal Financial Supervisory Authority). Trade Republic works with banks such as Citibank and Deutsche Bank to securely hold their clients’ money.

One interesting thing that Trade Republic allows you to do is to buy fractional shares. This means you can purchase only a part of a share, which is useful, for example, if you want to buy a stock with a high price, like a share of (Booking Holdings Inc.), which, as of the date of this post, costs just over €2,600 per share.

How much does it cost to invest with Trade Republic?

Trade Republic’s commissions are among the lowest in the market, at only €1 per transaction. It does not charge an account management fee or market connection costs.

It’s important to consider the commissions, as they can take a significant portion of your investment, especially when starting with small amounts.

For example, imagine you buy a product worth €10, and the commission is €1.5. You immediately start your stock market adventure with 15% less due to the commission you paid. This is why Trade Republic is a perfect place to start.

What products can I buy on Trade Republic?

On Trade Republic, you can buy stocks, ETFs, and bonds. They offer 7,500 shares of large, medium, and small companies, as well as a selection of 2,000 ETFs.

How do I get started?

First, you need to download the application, which you can do by clicking on the banner below. By doing so, you help maintain the blog and future articles.

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Once you’ve installed the app, Trade Republic conducts a user verification where you have to upload identification (passport, identity card, or residence permit) and take a selfie, provide your data and BSN number. This is to prevent money laundering, and they also connect your account with Belastingdienst for your tax declaration.

The first thing you need to do is to deposit money into your account, which can be done via a bank transfer or credit card (Visa or Mastercard). Depositing via bank transfer is free. Using a credit card is free the first time, then it incurs a cost of 0.7%. For instance, if you deposit €100 with a credit card, your statement will show a charge of €100.70.

Once you have money in your account, you are ready to invest.

Trade Republic requires a bit more time and knowledge to use. If you want a simpler way to invest, you can also check out the entry Investment account for begginners

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