Neobroker: Der Zinsstreit bei Trade Republic geht weiter

Trade Republic, a neobroker, has been increasingly popular among investors and savers since 2023, offering attractive interest rates on cash deposits. The interest rate is fixed at 2.5%, matching the European Central Bank's deposit rate. However, despite the straightforward and fair appeal, the company faces criticism, particularly regarding its marketing and some details.

The Verbraucherzentrale Baden-Württemberg, a consumer protection organization, has filed multiple complaints against Trade Republic. One issue centers around the conditions for receiving interest payments – customers must activate the interest feature within the app, or no interest will be credited. Consumer advocates have previously accused Trade Republic of insufficiently transparent advertising, leading to a retraction statement in 2024, which consumer advocates deemed insufficient.

A recent settlement between Trade Republic and the Verbraucherzentrale Baden-Württemberg has sparked further controversy. The consumer protection group criticizes Trade Republic for not retroactively paying interest to affected customers, despite a previous settlement. Niels Nauhauser of the Verbraucherzentrale Baden-Württemberg asserts that Trade Republic is using the lack of "activation" as a justification to deny retroactive interest payments to customers. He advises customers to seek legal advice on their claims.

Trade Republic disputes these allegations, stating that the issue never concerned customers having to activate the interest payments. Instead, the company maintains that the problem lies in the promotional product descriptions. Moreover, Trade Republic's spokesperson clarifies that the consumer advocates' concerns are related to the advertising on the company's website, which was corrected in 2024. Trade Republic claims they have updated the website to make the activation of interest payments clearer and more transparent.

Trade Republic also emphasizes that the requirement to activate interest payments is clearly stated in both the app and the homepage. According to Trade Republic, approximately 92% of customers who deposit at least 100 euros have activated the interest product. This means that around 800,000 out of more than ten million customers have not activated the interest payments. The reason for this non-activation remains unclear, as opting out of interest payments is unusual in the industry.