Finanzen: Trade Republic verschärft Preiskampf um Altersvorsorgedepot

Online-broker Trade Republic is intensifying the price war for the subsidized retirement savings account. The company employs a free model to sharpen the competition among banks, which have recently presented numerous low-cost offers for the retirement savings account. Starting from 2027, savers will receive generous state subsidies if they invest for the future in index funds (ETFs), funds, and bonds.

Trade Republic, like many providers, forgoes account and execution costs, but additionally charges no annual management fee for several dozen ETFs. The zero-fee model aims to offer various models of the retirement savings account, including a fixed standard account and the customizable retirement savings account, where investors can design it themselves.

Monthly contributions to funds with more than 50 ETFs are waived, and reinvested. "Germany has become one of the world leaders in subsidized private retirement savings with the new retirement savings account," said co-founder Christian Hecker. "The crucial point now is to ensure that this support actually reaches people and does not remain as high fees in banks and insurance companies."

Trade Republic's offer is expected to be closely watched in the financial sector. The Berlin-based broker has over 10 million customers in Europe, with more than five million in Germany, and manages over 150 billion euros in customer assets. This makes Trade Republic a tough competitor for established banks, attracting many young customers.

The state promotes retirement savings through the stock exchange, offering deposits with up to 540 euro subsidy per year, with an additional 300 euro for each child. Deposits between 120 and 1,800 euros per year are eligible for the subsidy. Capital gains are not taxed during the saving phase. Trade Republic, like many providers, waives account and execution costs but charges a fee on several dozen ETFs.

The company also offers a "retirement bonus" for some ETFs, reinvesting the fund fees. In the standard account, annual product costs can reach up to 0.15 percent, while banks undercut each other with annual costs of up to 0.28 percent in the first two years, then 0.99 percent for a full-service retirement account. Several banks, including Deutsche Bank and DekaBank, plan to launch retirement accounts despite the intense price war.

According to a study by DWPBank, over 90 percent of 88 surveyed institutes plan to launch a retirement savings account. Customer retention and the potential to make further business with won customers outweigh economic efficiency.