Trade Republic is better known as a mobile app that helps you buy and sell stock, but the company is also interested in un invested cash. 2% will be given to users who hold cash in their account.
The feature reminds me of a cash sweep program. The 1.5% interest on cash sitting in their accounts is currently available in the U.S.
Trade Republic will likely attract new customers who are looking for higher interest rates because of inflation. The company is hoping that users will use its app to trade stock. Payment-for-order flow and some small fees help Trade Republic make money.
According to Trade Republic, interests will be calculated on a daily basis and user accounts will be credited once a month. Cash balances up to 50,000 are not eligible for interest. It will be interesting to see if the company can maintain a high interest rate over the long term.
The benefits of the new interest rate environment are being passed on to our customers. Christian Hecker said that every investor could now benefit from interest.
Trade Republic was one of the companies that raised a mega funding round in 2011. Following its $900 million round, it was valued at $5 billion.
It was a different year. The company laid off some people after announcing a Series C extension. Exchange-traded funds, derivatives, and cryptocurrencies are also offered.
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