Trade Republic vs Scalable Capital: A Comparison That Actually Helps You Decide
Trade Republic vs Scalable Capital — Expert-Backed Solutions for Complete Peace of Mind
Understanding Trade Republic vs Scalable Capital is essential for making informed decisions in today’s market.
If you’re in Germany and you’ve spent more than ten minutes researching where to start investing, you’ve hit this wall. Trade Republic vs Scalable Capital.
“Everyone asks the same question, every forum has the same thread, and most answers are either outdated or written by someone who clearly has a referral link in their bio.”
“So here’s what I actually think after using both platforms, reading the fine print, and watching how they’ve changed over the past few years.”
Neither is perfect. Both are better than the traditional German banks that still charge you €10 per trade like it’s 2005. But they serve slightly different people, and the differences matter more than most comparison articles let on.
Let’s start with the thing that gets the most attention: fees. Trade Republic charges €1 per execution for stock and ETF trades. Scalable Capital charges €1 per execution as well, at least on their free brokerage account. On paper, that’s a tie. In practice, it’s more complicated.
Trade Republic’s €1 fee applies to any order you place, whether it’s a one-off purchase or part of a savings plan. But here’s where it gets interesting. Their ETF savings plans are free of charge. Zero execution fee. That’s a big deal if you’re the kind of person who wants to automate everything and forget about it. Scalable Capital also offers free ETF savings plans on a selection of over 1,000 ETFs, so they match Trade Republic there.
Where the fee structure diverges is in the extras. Scalable Capital has a premium tier called Scalable Capital Prime that costs €2.99 per month. That gets you lower spreads on trades, access to more order types, and a few other perks. Trade Republic doesn’t have a subscription tier for trading. Instead, they make money on the spread and through their interest-bearing cash account, which we’ll get to.
Neither platform charges account management fees. Neither charges inactivity fees. Both are BaFin-regulated and your securities are held in a separate custody account, which means your investments are protected up to a certain threshold even if the company goes under. That part is identical and worth stating clearly because some people still worry about neo-brokers being less safe. They’re not, at least not in terms of regulatory protection.
Throughout this guide, we’ll explore Trade Republic vs Scalable Capital and how it directly impacts your financial future.
The Interest on Cash: Where Trade Republic Pulls Ahead – Trade Republic vs Scalable Capital
Download our exclusive step-by-step guide on Trade Republic vs Scalable Capital.
This is the section where I’ll be direct. Trade Republic wins on cash interest, and it’s not close. As of recent months, Trade Republic has offered interest on uninvested cash at rates that have hovered around 3.25% to 4% depending on market conditions. You don’t have to do anything special. The cash in your account earns interest automatically.
Scalable Capital does offer interest on cash too, but the rate has historically been lower and the conditions less straightforward. They’ve adjusted their offering over time, and at various points they’ve required you to opt in or meet certain criteria. Trade Republic just does it. You deposit money, it earns interest. Done.
For someone who keeps a meaningful cash buffer, maybe a few thousand euros waiting to be deployed, this difference adds up. Over a year, the gap between 3.5% and whatever Scalable offers could mean tens of euros. Not life-changing, but it’s free money you’re leaving on the table if you choose wrong.
But here’s the thing most people miss. That interest rate on Trade Republic isn’t guaranteed forever. It tracks the European Central Bank rate, and when the ECB cuts rates, Trade Republic cuts theirs. Scalable Capital’s rate moves too. So this advantage is real right now, but it’s not a permanent structural difference. It’s a snapshot of where things stand.
“The best Broker isn’t the one with the flashiest app. It’s the one you’ll actually use consistently for the next ten years.”
ETF Selection and Savings Plans – Trade Republic vs Scalable Capital
Both platforms offer a solid range of ETFs. Trade Republic gives you access to over 10,000 ETFs and stocks. Scalable Capital offers a similar breadth, with particular strength in their curated selection of savings plan ETFs.
The real question isn’t how many ETFs they offer. It’s which specific ones you want to buy. If you’re following a standard two or three ETF portfolio, something like a MSCI World plus an emerging markets fund plus a bond ETF, both platforms will have what you need. iShares, Vanguard, Xtrackers, SPDR. All the major providers are represented.
Scalable Capital has a slight edge in the number of ETFs available with zero-fee savings plans. They’ve partnered with various fund providers to offer what they call “Savings Plan ETFs” with no additional costs beyond the €1 execution fee, which is waived for savings plans. Trade Republic also has a large selection of free savings plan ETFs, but the exact count fluctuates as they add and occasionally remove funds.
One thing I appreciate about Scalable Capital is their research section. They provide analyst ratings, fund breakdowns, and portfolio analysis tools that go beyond what Trade Republic offers. If you’re the type who likes to dig into holdings, expense ratios, and performance data before committing, Scalable Capital’s interface supports that better. Trade Republic keeps things minimal. You search, you buy, you’re done. That’s either refreshing or frustrating depending on your personality.
User Experience and App Design
Trade Republic’s app is clean. Almost aggressively clean. The interface is designed for people who want to execute a trade in under 30 seconds. There’s minimal clutter, clear buy and sell buttons, and a straightforward portfolio view. If you’ve ever felt overwhelmed by the Bloomberg-terminal energy of some trading platforms, Trade Republic is the antidote.
Scalable Capital’s app is more information-dense. You get charts, news feeds, analyst opinions, and more detailed portfolio analytics. It feels more like a “real” brokerage platform, which some people prefer and others find noisy.
Neither app crashes regularly. Both handle basic functions well. But I’ve noticed that Trade Republic occasionally has issues during high-volatility events. When markets move fast and everyone wants to buy or sell at once, their order execution can slow down. Scalable Capital seems to handle these moments slightly better, though I haven’t run formal tests. This is anecdotal, and your experience may vary.
The onboarding process is similar for both. You verify your identity, usually through a video call or photo ID upload, and you’re set up within a day or two. Trade Republic’s verification has historically been faster, sometimes completing in under ten minutes. Scalable Capital can take a bit longer, especially during peak signup periods.
What About Stocks and Individual Investments?
If you’re planning to buy individual stocks alongside your ETF portfolio, both platforms support that. You can buy fractional shares on both, which is essential if you want to invest in expensive stocks like Amazon or Alphabet without committing thousands of euros per share.
Trade Republic allows fractional share purchases starting from as little as €1. Scalable Capital does the same. The execution is similar. You place an order, it gets filled, and you own a slice of the company.
Where they differ is in the order types available. Scalable Capital offers more advanced order types, including limit orders, stop-loss orders, and trailing stops, especially on their Prime subscription. Trade Republic has added more order types over time, but the selection is still more limited. If you’re a passive investor who buys and holds, this won’t matter. If you’re actively managing positions and want precise control over your entry and exit points, Scalable Capital gives you more tools.
Crypto and Other Asset Classes
Trade Republic offers cryptocurrency trading. You can buy and sell Bitcoin, Ethereum, and a selection of other coins directly through the app. The spreads on crypto are wider than what you’d find on dedicated exchanges like Kraken or Binance, but the convenience of having everything in one app appeals to some users.
Scalable Capital does not offer crypto trading. If that’s a dealbreaker for you, the decision is already made. But I’d push back on the idea that you need crypto in your brokerage account. Keeping your long-term investment portfolio separate from your speculative crypto positions is arguably better for your mental accounting. Just my view.
Neither platform offers options trading, futures, or forex. If you need those, you’re looking at a different category of Broker entirely. Interactive Brokers, for example, would be more appropriate.
Customer Support: The Part Nobody Wants to Talk About
Here’s where both platforms have room to improve. Trade Republic’s customer support has been a recurring complaint. They rely heavily on email and in-app chat, and response times can stretch to several days. If you have a simple question, you might find the answer in their FAQ section. If you have a complex issue, prepare to wait.
Scalable Capital offers phone support in addition to email and chat. That alone makes a difference when something goes wrong and you need a human being to explain what happened. Their response times are generally faster, though not instant.
Neither company has a physical branch you can walk into. That’s the trade-off for low fees and modern interfaces. If you value face-to-face interaction, a traditional bank or a direct bank like ING or DKB might suit you better, even if their trading fees are higher.
I’ll admit something here. I’ve never had a critical issue with either platform that required urgent support. So my assessment is based on general reputation and community feedback, not personal crisis experience. Take that for what it’s worth.
Tax Handling and Reporting
Both brokers handle German capital gains tax automatically. They calculate your gains, apply the €1,000 allowance for single filers (€2,000 for married couples), and withhold the appropriate amount. You don’t need to do your own tax calculations for basic buy-and-hold investing.
They also provide annual tax reports that you can hand to your Steuerberater or import into tax software like WISO or ELSTER. The reports are generally accurate, though I’ve seen occasional complaints about how wash sales or currency conversions are handled. If your situation is complex, lots of trades across multiple brokers, foreign dividends, you’ll still want a tax professional reviewing things.
One small advantage for Scalable Capital: their tax reporting interface is slightly more detailed and easier to navigate. Trade Republic’s reports are functional but bare-bones.
The Comparison Table You Actually Need
Here’s a side-by-side breakdown of the key features that matter when choosing between Trade Republic and Scalable Capital.
Who Should Pick Trade Republic?
Trade Republic is the better choice if you want simplicity above all else. If your strategy is “buy a world ETF every month and let it sit for 20 years,” Trade Republic makes that almost frictionless. The free savings plans, the automatic cash interest, and the stripped-down interface all serve that kind of investor.
It’s also the better option if you want crypto alongside your traditional investments and don’t want to manage multiple accounts. The spreads aren’t the best, but the convenience factor is real.
Younger investors, people just starting out, and anyone who gets analysis paralysis from too much data will probably prefer Trade Republic. It doesn’t overwhelm you with information. It just lets you invest.
“Most people don’t need the best Broker. They need the one that stops them from overthinking every decision.”
Who Should Pick Scalable Capital?
Scalable Capital suits the investor who wants more control and more information. If you like reading analyst reports, comparing fund holdings, and tweaking your portfolio based on data, their platform supports that workflow better.
It’s also the stronger choice if you trade individual stocks with any frequency and want access to limit orders, stop-losses, and other risk management tools without paying for a subscription. The free tier already offers more order flexibility than Trade Republic.
People who value phone support should lean toward Scalable Capital. When something goes wrong with your account, being able to call someone and get an answer in minutes rather than days is worth a lot. It’s one of those things you don’t appreciate until you need it.
And if you’re considering the Prime subscription, the lower spreads and additional features can make active trading meaningfully cheaper. At €2.99 per month, it pays for yourself if you’re placing more than a handful of trades per month.
The Referral Bonus Question
Both platforms run referral programs. Trade Republic has offered between €10 and €25 in free stock for referring friends. Scalable Capital has run similar promotions. These change frequently, so check the current offers before signing up.
I mention this because some people let the referral bonus influence their decision. Don’t. A one-time bonus of €20 is meaningless compared to the fees, interest, and experience you’ll deal with over years of using the platform. Pick the broker that fits your needs. The referral is a nice extra, not a deciding factor.
What About Security and Trust?
Both brokers are regulated by BaFin, Germany’s financial regulator. Both are members of the Entschädigungseinrichtung der Wertpapierhandelsgesellschaften, which provides additional protection for your securities. Your cash deposits are protected under the German deposit guarantee scheme up to €100,000 per person.
Trade Republic is owned by Trade Republic Bank GmbH, a fully licensed bank. Scalable Capital operates as Scalable Capital GmbH and is also a regulated financial institution. Neither is some fly-by-night operation. Both have been around long enough and have enough users that a catastrophic failure would be major financial news.
The custody of your securities is held separately from the company’s own assets. If Trade Republic or Scalable Capital went bankrupt, your investments would be returned to you, not treated as company property. This is standard practice for regulated brokers, but it’s worth repeating because the fear persists.
My Honest Take
If you forced me to pick one for a random German investor who’s just starting out, I’d say Trade Republic. Not because it’s objectively better, but because its simplicity reduces the chance that you’ll overthink things and never actually start. The barrier to entry is as low as it gets, the cash interest is a nice bonus, and the free savings plans cover everything a beginner needs.
But if you already know what you’re doing, if you’ve been investing for a year or more and you want more tools and more control, Scalable Capital is the more mature platform. It respects your intelligence without dumbing things down.
The worst choice is spending three months reading comparison articles and never opening an account. Both of these brokers are good. Pick one, start investing, and adjust later if your needs change. You can always transfer your portfolio to another broker. It’s not a marriage. It’s a tool.
FAQ
Is Trade Republic or Scalable Capital safer? – Trade Republic vs Scalable Capital
Both are BaFin-regulated and offer the same legal protections for your securities and cash deposits. Neither is meaningfully safer than the other. They operate under the same regulatory framework and both segregate client assets from company assets.
Can I have accounts on both platforms? – Trade Republic vs Scalable Capital
Yes. There’s no rule against having accounts with multiple brokers. Some people use Trade Republic for their automated ETF savings plans and Scalable Capital for individual stock picks. Just keep track of your total portfolio for tax purposes.
Which broker has better ETF savings plans?
Scalable Capital offers free savings plans on a slightly larger selection of ETFs, over 1,000. Trade Republic also offers a large number of free savings plan ETFs. Check both platforms for the specific ETFs you want before deciding, as the available selection can change.
Do either of these brokers offer English-language support?
Both platforms offer English-language interfaces and support. Trade Republic’s app is available in English, and their support team handles English inquiries. Scalable Capital also operates in English, which is helpful if you’re an expat living in Germany.
What happens to my investments if one of these brokers goes bankrupt?
Your securities are held in a separate custody account, not on the broker’s balance sheet. In the event of bankruptcy, your investments would be returned to you. Cash deposits are protected up to €100,000 under the German deposit guarantee scheme.
Is the Scalable Capital Prime subscription worth it?
It depends on your trading frequency. If you place more than five to ten trades per month, the lower spreads and additional order types on Prime likely justify the €2.99 monthly fee. For passive investors who buy once or twice a month, the free tier is sufficient.
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Conclusion
Here’s what I’d actually do if I were starting from scratch today. I’d open a Trade Republic account first. Set up a monthly savings plan on a broad world ETF. Let the cash interest accumulate on any uninvested money. Keep it simple for the first six months.
Then, once I was comfortable and wanted to explore individual stocks or more advanced order types, I’d open a Scalable Capital account and compare the experience side by side. There’s no rush. Both platforms make it easy to get started, and you don’t have to commit exclusively to one.
The Trade Republic vs Scalable Capital debate doesn’t have a single winner. It has a winner for you, based on your habits, your goals, and how much complexity you want in your investing life. Figure out which person you are, pick accordingly, and start. The best broker is the one that gets you invested.
