Selecting the right investment platform is one of the most critical decisions for European retail investors. If you are looking to build long-term wealth through exchange-traded funds (ETFs), trade individual stocks, or earn passive yield on your cash reserves, you have likely narrowed your choices down to two German fintech giants. In this comprehensive comparison of trade republic vs scalable, we will analyze their fee structures, investment options, user experiences, and safety measures to help you decide which broker fits your financial strategy.
Both platforms have revolutionized retail investing across Europe by offering fractional shares, commission-free savings plans, and highly intuitive mobile interfaces. However, they cater to slightly different investor profiles. While one emphasizes simplicity and flat-rate pricing, the other offers flexible subscription models designed for active traders. Let us dive deep into the specific features of each platform.
Regulatory Background and Asset Safety
Before depositing your capital, understanding the regulatory framework and safety of your assets is paramount. Both platforms are regulated in Germany by the Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank, ensuring compliance with strict European financial standards.
Trade Republic’s Banking License
Trade Republic operates as a fully licensed German credit institution (bank). This status allows them to manage deposits directly without relying on a third-party partner bank. Your uninvested cash is held in escrow accounts at partner banks like Deutsche Bank, HSBC, or J.P. Morgan, or directly with the European Central Bank (ECB). These deposits are protected up to €100,000 per investor under the German Deposit Guarantee Scheme (Entschädigungseinrichtung deutscher Banken).
Scalable Capital’s Custodian Model
Scalable Capital operates as a financial services institution rather than a full-service bank. To provide custody and banking services, Scalable Capital partners with Baader Bank, a well-established German investment bank. When you open an account with Scalable Capital, a custody account is created in your name at Baader Bank. Consequently, your cash deposits are held at Baader Bank and are also protected up to €100,000 under the German deposit protection system.
For both brokers, your securities (stocks, ETFs, and bonds) are classified as “Sondervermögen” (segregated assets). This means that in the highly unlikely event of bankruptcy of either broker or their custodian banks, your investments remain your legal property and cannot be claimed by creditors. They will simply be transferred to another custody account.
Investment Universe and Asset Classes
When comparing the investment options of trade republic vs scalable, both brokers provide access to thousands of global assets, but their exchange routing and specific offerings differ.
Trading Venues and Order Execution
- Trade Republic routes its trades exclusively through the Lang & Schwarz Exchange (LS Exchange), an electronic trading system operated at the Hamburg Stock Exchange. This allows Trade Republic to offer extended trading hours from 7:30 AM to 11:00 PM CET.
- Scalable Capital primarily routes trades through gettex, an electronic trading system operated by the Munich Stock Exchange, with trading hours from 8:00 AM to 10:00 PM CET. However, Scalable also offers the option to route trades through Xetra, Germany’s premier electronic exchange. Trading on Xetra is subject to additional exchange fees but can offer better liquidity and tighter spreads for very large order sizes.
Available Financial Instruments
Both platforms offer a massive selection of equities, but there are differences in specific categories:
- ETFs and Mutual Funds: Scalable Capital offers access to over 2,500 ETFs from all major issuers (iShares, Vanguard, Xtrackers, etc.) and over 3,000 classic mutual funds. Trade Republic offers a comparable selection of over 2,400 ETFs, though its mutual fund offering is more limited.
- Cryptocurrency: Both brokers allow you to invest in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Trade Republic holds the physical underlying crypto assets with a licensed custodian (BitGo). Scalable Capital offers crypto exposure via Exchange Traded Products (ETPs), which are securitized financial instruments backed by physical crypto. This makes tax reporting slightly different depending on your local jurisdiction.
- Bonds and Derivatives: Trade Republic has expanded its portfolio to include direct corporate and government bonds, allowing retail investors to lock in fixed yields with fractional amounts (starting at €1). Scalable Capital offers bond ETFs and derivatives (warrants, certificates) but lacks direct fractional bond trading.
Fee Structures: Flat Fees vs. Subscription Models
The most significant differentiator between trade republic vs scalable is how they charge for individual trades. Your trading frequency will dictate which pricing model is more cost-effective.
Trade Republic’s Flat Fee Model
Trade Republic keeps its pricing incredibly simple. There are no subscription tiers. Every single individual trade (buy or sell) of stocks, ETFs, bonds, or crypto costs a flat €1 settlement fee, regardless of the transaction volume.
Crucially, savings plans (Sparpläne) on stocks and ETFs are completely free. If you set up an automated recurring purchase, you pay €0 in transaction fees. The minimum investment for savings plans is just €1, making it highly accessible for beginners.
Scalable Capital’s Tiered Pricing
Scalable Capital offers three distinct pricing tiers to accommodate different trading behaviors:
- FREE Broker: This tier has no monthly base fee. Individual trades through gettex cost €0.99 per transaction. However, savings plans are completely free of charge. Trades executed via Xetra cost €3.99 plus an exchange fee (typically around €1.50).
- PRIME Broker: This plan costs €2.99 per month (billed annually at €35.88). It functions as a flat-rate trading subscription. You get unlimited free individual trades on gettex for order sizes of €250 or more. Trades under €250 on gettex still incur a €0.99 fee.
- PRIME+ Broker: This tier costs €4.99 per month (billed monthly). It includes all the benefits of the PRIME Broker plan, plus an attractive variable interest rate on your uninvested cash balance.
For investors who only want to set up recurring savings plans, both brokers are virtually identical in cost (free). However, if you plan to execute multiple individual manual trades each month, Scalable Capital’s PRIME subscription quickly becomes more economical than Trade Republic’s €1 per-trade fee.
| Feature | Trade Republic | Scalable Capital (FREE) | Scalable Capital (PRIME/+) |
|---|---|---|---|
| Monthly Fee | €0.00 | €0.00 | €2.99 / €4.99 |
| Individual Trade Fee | €1.00 flat | €0.99 (gettex) | €0.00 (orders ≥ €250) |
| Savings Plans | Free (€0) | Free (€0) | Free (€0) |
| Min. Savings Plan Amount | €1.00 | €1.00 | €1.00 |
| Primary Exchange | LS Exchange | gettex | gettex / Xetra |
Interest on Uninvested Cash and Card Benefits
With rising interest rates, neobrokers have transformed into high-yield savings alternatives. Both platforms offer interest on cash balances, but under very different terms.
Trade Republic’s Interest and Visa Card
Trade Republic offers a highly competitive variable interest rate on all uninvested cash balances up to €50,000. This interest is calculated daily and paid out monthly, allowing you to benefit from compound interest immediately. There are no subscription requirements to earn this interest; it is available to all account holders.
Additionally, Trade Republic offers a Visa debit card. The card has no monthly fee (though there is a one-time fee of €5 for a plastic card or €20 for a metal card; the virtual card is free). The standout feature of this card is the 1% Saveback benefit. For every eligible card transaction, Trade Republic rounds up or awards 1% of the purchase amount directly into one of your active savings plans (capped at €15 per month, requiring an active savings plan of at least €50/month).
Scalable Capital’s PRIME+ Interest
To earn interest on your uninvested cash with Scalable Capital, you must subscribe to the PRIME+ Broker plan for €4.99 per month. Scalable Capital pays a competitive variable interest rate on cash balances up to €100,000. The interest is calculated daily and paid out quarterly.
Because of the €4.99 monthly fee, you must calculate whether your average cash balance is high enough to offset the subscription cost. For example, if you hold a steady cash balance of several thousand euros, the interest earned will easily cover the annual subscription fee, making the unlimited trading features essentially free.
User Interface, Platform Usability, and Savings Plan Flexibility
While both platforms offer modern web and mobile applications, their design philosophies are distinctly different.
Trade Republic: Minimalist and Mobile-First
Trade Republic’s interface is clean, minimalist, and highly optimized for mobile devices. The search functionality is straightforward, and placing an order takes only a few taps. While this simplicity is excellent for beginners, advanced investors might find the lack of detailed charting tools and technical indicators limiting. The web interface is functional but mirrors the simplicity of the mobile app.
When it comes to savings plans, Trade Republic is highly automated. You can choose to execute your savings plans weekly, twice a month, monthly, or quarterly. The execution dates are typically around the 2nd, 9th, 16th, or 23rd of the month.
Scalable Capital: Analytical and Informative
Scalable Capital offers a more data-rich interface. It provides detailed charts, historical performance metrics, and integrates directly with financial portals to display relevant news. For investors who want to analyze their portfolio allocation deeply, Scalable’s platform feels more professional.
Scalable Capital also shines in its savings plan flexibility. You can set up savings plans to run monthly, bi-monthly, quarterly, semi-annually, or annually. Furthermore, Scalable allows you to choose from several execution days throughout the month (e.g., 1st, 4th, 7th, 10th, 13th, 16th, 19th, 22nd, 25th, 28th), giving you precise control over when your money is invested relative to your payday.
Tax Handling for European Investors
Taxation is a crucial factor that can add significant administrative overhead if not handled correctly.
For German tax residents, both Trade Republic and Scalable Capital (via Baader Bank) offer fully automated tax handling. They automatically deduct the German capital gains tax (Abgeltungsteuer), solidarity surcharge, and church tax (if applicable) before paying out dividends or realizing gains. Both platforms allow you to submit a tax exemption order (Freistellungsauftrag) directly within the app to exempt up to €1,000 of investment income per year from taxation.
For investors outside of Germany (such as in France, Italy, Austria, or Spain), the platforms do not automatically withhold local taxes. Instead, they provide comprehensive annual tax reports. These reports are designed to help you fill out your local tax returns, but you are ultimately responsible for reporting and paying any taxes owed to your local tax authority.
Conclusion: Which Neobroker Fits Your Strategy?
Choosing between trade republic vs scalable ultimately depends on your investment frequency, cash management preferences, and desired user experience.
- Choose Trade Republic if: You prefer a simple, flat-rate fee structure without recurring subscriptions. It is the ideal platform if you mainly want to set up automated, free savings plans, hold uninvested cash to earn monthly interest without paying a monthly fee, and want to utilize the unique 1% Saveback Visa card to boost your investments.
- Choose Scalable Capital if: You are an active trader who executes multiple manual transactions per month, making the PRIME flat-rate subscription highly cost-effective. It is also the better choice if you prefer a more analytical web interface, require greater flexibility in savings plan execution dates, or want to trade on the premium Xetra exchange for larger order volumes.
Both platforms represent the gold standard of modern European neobroking. Many investors even choose to utilize both: using Trade Republic for cash savings and its debit card, while running their primary trading activities on Scalable Capital’s PRIME plan.
Affiliate Disclosure: Some of the links in this article are affiliate links. If you sign up for an account through them, FinCrati may earn a commission at no additional cost to you. This does not affect our objective editorial assessment, and we only recommend platforms that meet our strict standards for safety, regulation, and value.
Pros & Cons
Trade Republic
✅ Pros
- Fully licensed German bank with direct deposit protection
- No monthly subscription fees to earn variable interest on cash
- Visa debit card with 1% Saveback directly into savings plans
- Allows direct fractional bond investing starting at €1
❌ Cons
- Flat €1 fee on every individual trade can add up for active traders
- Minimalist charts and limited technical analysis tools
- Only one trading venue available (LS Exchange)
Scalable Capital
✅ Pros
- PRIME subscription offers unlimited trading for a flat monthly fee
- Option to route trades through Xetra for high-volume orders
- Advanced charting tools and deeper portfolio analysis features
- Highly flexible savings plan execution dates (10 options per month)
❌ Cons
- Must pay €4.99/month (PRIME+) to unlock interest on cash
- Trades under €250 on gettex still cost €0.99 even on PRIME plans
- No direct fractional bond trading (only bond ETFs)
Pricing Comparison
Trade Republic Standard
- Free savings plans
- €1 flat fee per individual trade
- Variable interest on cash up to €50,000
- Free virtual Visa card with 1% Saveback
Scalable FREE Broker
- Free savings plans
- €0.99 fee per individual trade on gettex
- Access to Xetra trading (€3.99 + fees)
- No interest on cash
Scalable PRIME Broker
- Billed annually (€35.88/year)
- Unlimited free trades on gettex (orders ≥ €250)
- Unlimited free savings plans
- No interest on cash
Scalable PRIME+ Broker
- Billed monthly
- Unlimited free trades on gettex (orders ≥ €250)
- Variable interest on cash up to €100,000
- Smart Portfolio groups and custom price alerts
Frequently Asked Questions
Is my money safe with Trade Republic and Scalable Capital?
Yes. Both brokers are regulated by the German financial regulator (BaFin). Cash deposits up to €100,000 are protected by the German Deposit Guarantee Scheme. Securities (stocks, ETFs) are held as segregated assets (Sondervermögen), meaning they remain your property even if the broker goes bankrupt.
How do Trade Republic and Scalable Capital handle taxes?
For German tax residents, both platforms automatically calculate and withhold the German capital gains tax (Abgeltungsteuer) and support the submission of a tax exemption order (Freistellungsauftrag). For investors residing outside Germany, both platforms provide annual tax reports to simplify manual local tax filing.
Can I set up free ETF savings plans on both platforms?
Yes. Both Trade Republic and Scalable Capital offer completely free savings plans for ETFs and stocks. The minimum investment amount for savings plans is €1 on both platforms, allowing you to automate your investing without paying transaction fees.
What are the key differences in interest on cash between the two?
Trade Republic offers variable interest on uninvested cash up to €50,000 for all users with no monthly fee. Scalable Capital offers variable interest on cash up to €100,000, but only for users subscribed to the PRIME+ plan, which costs €4.99 per month.