Unhappy customers target Trade Republic: Resurrected deceased individuals lie amongst their clientele
In the bustling world of neobrokers, Frankfurt-based Trade Republic is finding itself under the microscope. The financial services company, known for its compliance with BaFin's strict regulations, is currently facing an investigation regarding its advertising claims about interest rates and deposit protection.
The investigation, which began in February 2025, centres around Trade Republic's marketing strategy that once promised customers an "unlimited" interest of up to three percent on their deposits. However, it appears that the company did not disclose that these interest rates could change in line with the European Central Bank's key interest rate.
This development comes at a time when consumer advocates have filed a lawsuit against Trade Republic, and the consumer protection agency in Baden-Württemberg is taking action against the company. The allegations, if proven, could potentially harm Trade Republic's image and reputation.
Despite this scrutiny, the girocard, a market leader in stationary retail and preferred payment method in Germany, continues to see a record number of transactions. The girocard, despite being less popular in the payment and banking scene, remains a significant player in the German payment market, maintaining its position even in the face of competition from Visa debit card, Apple Pay, PayPal, and other digital payment methods.
In 2025, Germany is one of the lands that continues to prefer the girocard over other payment systems. Last year, Frankfurt-based Euro Kartensysteme reported 7.9 billion girocard payment transactions. The loss of the Maestro function did not significantly affect the girocard's performance, and it remained the top performer in payment transactions in February 2025.
Amidst this investigation, neobrokers in 2025 are focusing on consumer protection, ensuring that their marketing strategies are transparent and comply with regulatory standards. Trade Republic, for its part, continues to claim that its products comply with BaFin's strict regulations, viewing the ongoing exchange with the regulatory authority as "normal supervisory practice."
As the investigation unfolds, it remains to be seen how this will impact Trade Republic's operations and its relationship with its customers. However, for now, the girocard remains a preferred payment method in Germany, demonstrating the resilience of traditional payment systems in the face of modern digital competition.
The ongoing investigation into Trade Republic's advertising claims about interest rates and deposit protection could potentially impact the financial standing of the neobroker, especially considering Germany's preference for the girocard as a payment method in business transactions. The technology-driven financial sector is now focusing on consumer protection, with companies ensuring their marketing strategies adhere to regulatory standards.
