Summary: Trade Republic, a popular mobile banking app that provides access to over 50 cryptocurrencies, is often regarded as one of the worst ways to invest in digital assets in Europe. This is due to the wide 2% spreads on their platform that make it expensive to invest in Bitcoin and cryptocurrencies.
Our analysis of more than 20 licensed platforms spotlighted Bitpanda as the prime alternative to Trade Republic. Bitpanda, regulated in Germany by BaFin and also by CySEC in Europe, ensures a smooth, low-fee EUR transfer from any bank, and provides access to a broad array of over 3,000 digital assets, stocks, ETFs, and other investment strategies including crypto staking.
Can you Buy Crypto with Trade Republic?
Yes, Trade Republic, based in Germany, facilitates the trading of over 50 digital assets including Bitcoin (BTC) and Ethereum (ETH). However, despite claims of 'zero-fee orders', a 2% spread fee is levied on crypto trades.
With its offering of just 50 cryptocurrencies, the Trade Republic platform is somewhat limited compared to average exchanges. Hence, we recommend investors explore alternative crypto platforms in Germany, preferably those regulated by the Federal Financial Supervisory Authority (BaFin) or the European Securities and Markets Authority (ESMA).
How to Buy Bitcoin and Crypto with Trade Republic
The most secure method to purchase Bitcoin and various cryptocurrencies, as an alternative to your Trade Republic account, is through a regulated exchange. Such platforms facilitate swift Euro (EUR) deposits from this alternative, making it easy for you to acquire and transact numerous digital assets. Based on our assessment, Bitpanda emerges as an excellent choice for Euro (EUR) deposits, thanks to its instant transfers, a wide array of more than 3,000 assets, crypto staking capabilities, and compliance with BaFin regulations.
Here's a simple, step-by-step guide to help you navigate the process:
- Sign up on Bitpanda and finish your identity verification.
- Select the 'Deposit' option, typically situated at the top of your screen.
- Pick Euro (EUR) as your currency and confirm your transfer from the alternative to Trade Republic.
- When your account is credited, find the cryptocurrency you wish to purchase and execute your trade.
Trade Republic Crypto Fees
Trade Republic provides free upfront crypto trading but imposes a €1 fee per trade for third-party costs. If you're using their savings plan for ETF/stock/crypto purchases (investment volume: €1 to €10,000), there's no execution fee. However, a 2% spread is applied to crypto transactions within the savings plan. For postal orders, a €25 fee per execution is charged.
Lastly, a 1% fee is levied on instant trading volume for deposits made via credit/debit cards, ApplePay, or Google.
Is Trader Republic good for buying Crypto?
While Trade Republic offers a platform for crypto trading in Germany, it might not be the optimal choice for investors, given its 2% spread on crypto transactions and a relatively limited selection of only 50 cryptocurrencies. These factors could restrict the diversification opportunities for investors and potentially impact the cost-effectiveness of their investments.
To wrap up, even though Trade Republic enables crypto trading with a decent range of over 50 digital assets, its 2% transaction fee and a limited selection might not make it the best choice for investors who aim to diversify and save costs on their investments. On the other hand, Bitpanda, backed by BaFin and CySEC regulations, offers a far larger variety of over 3,000 digital assets including cryptocurrencies, stocks, and ETFs, and allows low-fee Euro transfers.
So, if you're exploring the German crypto market, you might want to give platforms like Bitpanda a closer look, as they might better cater to your investment needs. But remember, doing your homework is crucial before stepping into the world of cryptocurrencies.