The fintech unicorn Trade Republic published its 2021 numbers. It has generated revenues of just under €100 million with €35 million losses. The broker app Trade Republic is currently valued at over five billion euros. The fintech allows users to trade stocks and cryptocurrencies. For each order, the startup charges a flat fee of one euro. Additionally, Trade Republic finances itself through commissions from third-party partners.
In the 2020/2021 fiscal year, which lasted from October 2020 to September 2021 inclusive, Trade Republic thus turned over 94 million euros. Around €1.5 million of this sum would be due to a one-off payment from a service provider. However, the revenues mainly consist of commission income and the third-party fee, i.e., the one euro fee.
Compared to the nearly 27 million euros in revenue in the previous fiscal year, the broker app was thus able to more than triple its earnings. Trade Republic attributes the growth primarily to international expansion and the launch of new products, such as its entry into the crypto business. “Overall, the management considers the business performance in the past fiscal year to be extremely satisfactory,” the company writes in its report.
No figures have yet been published for the recently completed fiscal year, which ended in September 2022. According to the financial statement, Trade Republic expects another significant increase in commission income and bottom line.
In mid-January this year, the broker app surprisingly introduced credit interest – a major coup for new customer acquisition. On top of the budget not invested in stocks or ETFs, the fintech hits two percent interest. In the first two weeks, existing and new customers are expected to have transferred at least one billion euros to their user accounts, according to the fintech magazine Finance Forward. Although this offer will also cause costs to skyrocket, it will lead to more transactions and, thus, revenues.