Photo: C. Nass /Shutterstock
The German Neobroker Trade Republic, who deals with shares, ETFs and Cryptocurrencies is currently faced with a number of challenges that could significantly influence its future. In particular, technical failures during a stock market crash and an impending ban on the commission model in the EU put the company to the test.
Technology failure at the wrong moment
On April 7, 2025, a global Interceptiontriggered by announcements of new US tariffs by President Donald Trump, for panic sales worldwide. At that moment, numerous users from Trade Republic Massive experienced technical problems: The app was not available at times, portfolios could not be displayed, transactions were difficult to carry out.
Selling the online shares has been disturbed worldwide since 9:15 p.m.
The biggest trade republic app is no longer available
So no more sale possible during the stock exchange crash
Black Mondey pic.twitter.com/yqb5gdjewf
– spy_the_fly (@spy_the_fly) April 7, 2025
The company emphasized that trading was possible at any time, but the user frustration was great. These incidents raise questions about the technical resilience of the platform-especially since there have been similar failures in the past, for example during the Gamestop Hypes 2021.
New rules, new business models
In addition, there is a structural problem: the ban on prohibition of “Payment for Order Flow” (Pfof) – a central component of the Trade Republic business model. So far, the broker has received payments from trading places for the forwarding of customer orders. It is estimated that this model made up to a third of the company’s income.
The planned regulation forces Trade Republic to open up new sources of income-for example via paid premium services, subscription models or by awarding credit. CEO Christian Hecker is still optimistic And emphasizes that you will continue to offer attractive offers for private investors in the future.
Apart from technology and regulation, customer service also causes criticism. In the recent problems with crypto savings plans, there were double debit and incorrect bookings-an experience that was tightened by the highly automated and difficult to reach support.
Great savings plan problems at Trade Republic-investors should now know that https://t.co/g7trxrrtw4 pic.twitter.com/7fpuzcwkbz
– world (@welt) April 2, 2025
Many users find the service insufficient, especially in the case of more complex concerns.
Overall, Trade Republic is at a crucial point in his development. In order to assert itself in the long term, the company not only has to significantly improve its technical infrastructure, but also develop a sustainable, regulatory business model – and regain the trust of its users.
We keep an eye on the developments related to Trade Republic and keep you In our news To up to date as soon as there is something new.