Is Trade Republic Safe? Banking Licence, Deposit Protection and Where Your Securities Sit
Yes, Trade Republic is safe and legitimate. It holds a full German banking licence supervised by BaFin, so cash is protected under the German deposit guarantee up to €100,000, while your securities are held in custody at HSBC and Citi and covered by the German Investor Compensation Scheme up to €20,000. Capital at risk.
Reviewed by Yaniv Barshaf · Fees verified June 2026 · Our methodology
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A licensed German bank, supervised by BaFin
Trade Republic is not merely an app: Trade Republic Bank GmbH holds a full German banking licence, granted by BaFin in December 2023, and is supervised by BaFin and the Deutsche Bundesbank. Holding a banking licence is significant because it brings the firm under banking-grade capital, prudential and client-money rules, rather than the lighter regime that applies to some investment-only apps. In January 2026 a Trade Republic subsidiary also obtained a BaFin licence to operate a multilateral trading facility, giving it more control over its own trading infrastructure. For a safety-minded investor, the headline is straightforward: Trade Republic is a supervised German bank, not an unregulated operator, and BaFin can intervene if rules are breached. Regulation does not make investing risk-free, but it firmly establishes the firm's legitimacy and the framework that protects your money. As of July 2026, Trade Republic Bank GmbH remains BaFin-supervised. Capital at risk.
Your cash: €100,000 deposit protection
Because Trade Republic holds a banking licence, the cash you keep with it is treated as a bank deposit and protected under the German statutory deposit guarantee scheme up to €100,000 per person if the bank fails, as of July 2026. This is the same €100,000 protection that applies to ordinary deposits across the EU under the harmonised deposit-guarantee framework, and it is a genuine, meaningful backstop for the uninvested cash in your account. One practical detail is worth knowing: for balances above the €100,000 threshold, cash may be allocated to qualifying money-market funds rather than sitting purely as a deposit. Money-market fund holdings are not deposit-guaranteed in the same way, but they are held as your property in segregated custody rather than on the bank's own balance sheet. For most investors, the key point is that cash up to €100,000 enjoys full statutory deposit protection. Capital at risk.
Where your securities are held
Your shares, ETFs and bonds are not owned by Trade Republic. They are held in custody with established institutions: Trade Republic uses HSBC and Citi as custodians, holding your securities in segregated arrangements so they are kept separate from the bank's own assets. This segregation is central to safety, because it means that if Trade Republic failed, your securities are held for you and would be returned or transferred rather than treated as assets available to the bank's creditors. Using large, well-known custodian banks adds a further layer of institutional robustness to how your investments are safeguarded. As a backstop to segregation, securities are also covered by the German Investor Compensation Scheme up to €20,000 per person in the event of fraud or insolvency, as of July 2026. So the protection is layered: custody and segregation first, then the compensation scheme if there is a genuine shortfall. As with all such schemes, the €20,000 securities limit is modest against a large portfolio.
Realistic risks and what is not covered
It is important to be honest about the limits of these protections. Neither deposit protection nor investor compensation covers investment losses: if your holdings fall in value because markets move against you, no scheme reimburses that, because it is ordinary investment risk. The €100,000 deposit guarantee applies only to cash and only if the bank fails; the €20,000 investor-compensation cover applies only to a genuine shortfall in segregated securities after a failure, not to the everyday value of your holdings. Trade Republic also offers crypto, which sits outside these traditional investor-protection schemes and carries heightened risk. A further, softer point is that Trade Republic is a deliberately minimal, mobile-first platform with limited research and tools, and its banking licence is relatively recent, dating to late 2023. That is a maturity consideration rather than a safety flaw: your protections are robust, but the product is lean. Only invest money you can afford to leave invested through market ups and downs. Capital at risk.
So, is Trade Republic safe overall?
Judged as an institution, Trade Republic sits on solid ground: a full German banking licence, BaFin and Bundesbank supervision, €100,000 statutory deposit protection on cash, securities held in segregated custody at HSBC and Citi, and German investor-compensation cover up to €20,000. That combination puts it firmly in the category of a legitimate, well-protected provider. Founded in 2015 and now backed by a banking licence and major custodian relationships, it has grown into one of Europe's largest neobrokers. The honest caveats are the modest €20,000 securities-compensation cap relative to the €100,000 cash guarantee, the fact that crypto and money-market allocations fall outside deposit protection, and the general truth that no scheme covers market losses. Weigh the lean, no-frills nature of the platform against your own need for research and tools. As of July 2026, the safety picture described here stands. Capital at risk.
The bottom line
Trade Republic is a safe, legitimate provider. It holds a full German banking licence under BaFin supervision, protects cash under the German deposit guarantee up to €100,000, holds securities in segregated custody at HSBC and Citi, and covers securities via the German Investor Compensation Scheme up to €20,000, as of July 2026. The caveats are the modest €20,000 securities cap versus the €100,000 cash guarantee, the exclusion of crypto and money-market allocations from deposit protection, and the deliberately lean platform. As always, no scheme covers market losses. Capital at risk.
Trade Republic
Best €1-flat neobroker for low-cost investing in the eurozone
Capital at risk. This is not financial advice. Investing involves risk of loss.
Frequently Asked Questions
Is Trade Republic a real bank?
Yes. Trade Republic Bank GmbH holds a full German banking licence granted by BaFin in December 2023 and is supervised by BaFin and the Bundesbank, as of July 2026. That brings it under banking-grade capital and client-money rules rather than a lighter investment-only regime.
Is my money protected at Trade Republic?
Cash is protected under the German statutory deposit guarantee up to €100,000 per person if the bank fails. Securities are held in segregated custody at HSBC and Citi and covered by the German Investor Compensation Scheme up to €20,000. Market losses are never covered. Capital at risk.
Where does Trade Republic keep my shares?
Your securities are held in segregated custody with established custodian banks, namely HSBC and Citi, kept separate from Trade Republic's own assets. If the firm failed, they should be returned or transferred, with the German Investor Compensation Scheme covering up to €20,000 for any shortfall.
What happens to cash above €100,000?
Cash up to €100,000 enjoys full statutory deposit protection. Balances above that threshold may be allocated to qualifying money-market funds, which are not deposit-guaranteed in the same way but are held as your property in segregated custody rather than on the bank's balance sheet.