Trade Republic: Bonds, ETFs and 4% Interest! What's the Catch?
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- Опубліковано 3 жов 2023
- 🇪🇺 Trade Republic: angelo.fi/trep
Trade Republic, one of the best brokers in Europe for ETFs and stocks just launched a massive update!
You now earn 4% interest per year on euro deposits, secured by a 100000€ bank deposit guarantee and you can now invest in bonds starting from only 1€! That's in addition to it's commission-free recurring investments into stocks and ETFs and its flat trading fee of only one euro.
Since the broker also introduced a major redesign of its app, we'll review every important aspect:
- Why Trade Republic is one of my favorite low-cost brokers in Europe
- How to enable the 4% interest rate (Is there a catch?)
- How to buy bonds, ETFs and stocks on Trade Republic, either via direct order or a commission-free recurring investment (aka. savings plan)
- As well as basics like depositing and withdrawing money to save you some time
My Favorite Brokers (ETFs & Stocks):
🇪🇺 Interactive Brokers: angelo.fi/ibkr
🇪🇺 Trade Republic (4% interest p.a.): angelo.fi/trep
🇩🇪🇦🇹 Easiest for Germany & Austria: angelo.fi/etfs
👉 Compare ETFs & Stocks: angelo.fi/comp
My Top 3 in P2P Lending:
📌 Esketit (0.5% bonus): angelo.fi/esketit
📌 Mintos (50€ bonus): angelo.fi/mintos
📌 Income (1% bonus): angelo.fi/income
💰 All P2P deals & conditions: angelo.fi/all
⚡ Where I Buy Crypto (10€ bonus): angelo.fi/bit
📈 I Track my ETFs here: angelo.fi/getq
🏠 All my investments & accounts: angelo.fi/tools
Our main ETF: Vanguard FTSE All-World Accumulating (ISIN: IE00BK5BQT80, Ticker: VWCE)
🎥 You'll enjoy these as well:
• ETF Investing in Europe
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Some of the links are affiliate links, which help support me and the UA-cam channel. Still, none of the links are sponsored.
Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.
How do you feel about Trade Republic's features and its new app?
🇪🇺Trade Republic: angelo.fi/trep
🇪🇺Best alternative: angelo.fi/ibkr
👉Compare ETFs & Stocks: angelo.fi/comp
📈I track my ETFs here: angelo.fi/getq
🇦🇹🇩🇪Germany & Austria only (ETFs): angelo.fi/atde
🏠All my investments (incl. P2P lending and crypto): angelo.fi
Hello, is it possible to buy US stocks in trade republic?
Of course! The most popular stocks are all from the US
@@AngeloColomboFiHello, I live in Lithuania and I have a question: Do I have to declare my income from shares to the state and pay taxes to the state?Or will trade republic do it for me?
The app asks for a referral code (probably to send your commission) but the code built in your link does not work, so you might need to add it as we only get a link to the app from the website instead of anything that sends your information as the referrer. Let me know if there's anything I can do so you're paid, as I am opening an account with them right now.
@@AngeloColomboFi
Yes, let me know as well. They say: “You can find the referral code at the end of the invitation link.” And it’s form might be ABCD1234
Hi Angelo, thank you for the excellent content. I am reading many of your great responses to lot's of interesting questions from the community. I'm totally blown away at your dedication to your channel community & very grateful! Thank you.
Best youtube channel there is, thanks Angelo por taking the time to put all this info together!
I appreciate you saying that, thank you! 🙏
Thanks Angelo! Great video.
Thank you for this highly informative video!!!
Thanks Angelo for your community post about this the other day! I would have totally missed it.
You're very welcome! I wanted to wait until it went live and I was able to activate the 4% myself on Saturday to confirm
Thanks for the video! I was already using TR, but the 4% interest is definitely awesome!
My pleasure! Yeah, 4% is hard to beat right now, I'll happily take it 👌
Hello Angelo, thanks for this video! I'm pretty new to the world of investing but I decided to use Trade Republic a few weeks ago. Could you make a video showing the key data that we should take into account when purchasing a bond? Could you show us a practical example in more detail?
Thank you !
Hi, will open account with your link because your content is really good
Thank you, that means a lot :)
Thanks so much so informative as always! I opened a Trade Republic account but I don’t seem to be able to activate the 4% interest rate. Is it then already activated?
Thanks Angelo, great video again! What I am wondering is how long the 4% is going to last. Scalable capital was also offering 2.6+1.4% but they reduced it back to 2.6% after a short while
I think it depends on how long the ECB keeps rates high, but I could imagine they keep the rate for a while. Trade Republic was also the first to offer 2% back in January.
Hi Angelo, great video! I would love a video tutorial on how to purchase bonds on IBKR. As you mentioned, it is pretty complicated unfortunately. But with the current interest rates, I am sure many of us would find such a video extremely helpful.
Thank you Valerio! Alright, I'll see what I can do for future videos!
in particular united states bonds@@AngeloColomboFi
So thanks to your explanation, I understand the basics. I would appreciate to understand the difference between a commission free recurring investment and the shares buying. Thank you in advance!
Hi Angelo, great contents! I’m also living in Austria and I actually have a question: why do you need to use so many different brokers? I am understand the difference of some of them before, but now for example seems Trade Republic would offer all the same ETFs like the others such as Interactive Brokers or not? If you have to choose only one to all the investments you suggest: which one would prefer?
Good man Angelo!
Great video! Thx
Thanks for the video. I'm still learning about bonds but it's exciting that the option is in principle easier. That 4% definitely makes up for the ugly interface!
You're very welcome! Yes, they're finally accessible directly instead of having to buy bond ETFs with a mix of durations and collections from different countries within them. I agree, the 4% make it a lot more tolerable 😅
Seems very useful for European investors indeed. I wish I'd known about it before signing to 5 other platforms to get all the benefits you've listed in this video.
I also have several brokerage accounts. As long as no account fees are involved, I don't think it's an issue :)
love the video, thanks
Happy to hear that, thank you Joel!
Thank you 👍.
You're welcome! 🙏
nice interesting video, thank you! I want to sign up using your link, but after some checks I am concerned about their bad reviews online, especially their customer service. What was your exprience in this regard?
Dear Angelo, Thanks for the video. Have consider showing how to buy Bonds on Interactive Brokers, perhaps showing how to buy Bond ETF, for tax purposes? thanks!
Hello Angelo, I have quick questions. How does it works with recurring investment twice a month? I can pick either beginning or middle of the month. In case of middle of the month, start is 16th. When will the second payment be executed?
Could you share this info? Many thanks in advance.
Great for saving plans
Yes, especially when investing smaller amounts, the commission-free saving plans are great
Hi Angelo, why do you have your cash reserves on Trade Republic? i saw a video that IB have interest on free cash too. So my question is, isn't it better to have your investments and cash reserve on one broker? Or is it some kind of diversification too? Because i am thinking about putting my cash reserves on some broker account too so can you tell me why did you choose TR over IB? Btw i love your videos.
Hello Angelo, this was great video and thanks for sharing all details. I am from Bulgaria and where unfortunately it is not yet available. I suppose this means that currently i am not able to use it now but do you know are they gonna make it wider soon? What I am targetting is byund ETFs, like inverst a sum of money and regulary adding more on a monthly basis.
thank you for the video, I learned a lot form your vids. I only wonder why people ever should use the stop feature? And if savings plans stop when your account 'cash' money?
My pleasure!
Do you mean limit orders? Those simply give you some flexibility if you want to wait/bet on a lower price before buying.
Yes, saving plans are not executed if you chose to pay them with your cash balance and if you don't have that amount of cash on your account at the time of purchase
Hi Angelo,
I live in Austria and I have an account with Flatex, can I shift to trade republics for buying then when I need to sell, I transfer the stocks to my Flatex account for tax reasons?
Or what are your tips for tax in Austria?
Great video.. one question regarding spread fees between trade republic and scalable capital. You had mentioned before during comparison between IBKR and scalable, the spread fees in SC is much higher than IBKR. How does it compare with trade republic?
Thank you! I think I only mentioned spread regarding savings plans so far. Based on my experience, direct orders on Trade Republic (Lang & Schwartz exchange) are often executed at a slightly better price than trades at the same time on Gettex, which is what Scalable uses. You can test this yourself by placing an order on TR and then looking for the latest orders for your ETF here in comparison (select an ETF and then scroll down to Times & Sales): www.gettex.de/en
That’s good video indeed. However, I have a question, what do you think trading 212 vs Trading republic? For small fraction etf investment.
Definitely Trade Republic. No share lending and most importantly, you can transfer your shares over to another broker. On T212 you're locked in.
Hi Angelo, thanks for the video! I have a question about the FTSE Acc and maybe you have an answer: I own shares of the FTSE all-World USD (Acc) ETF but I can't see the dividends anywhere?
I also own shares of Nvidia for example and those dividends are right there with the interest on the cash.
The dividends for the ETF are accumulating so they should be re-invested right away, right, but I would like to see somewhere how much and if it's working correctly.
Thanks in advance!
You'll never see the dividends, they're reinvested within the fund throughout the year as thousands of stocks pay them out at different times, additionally raising the share value by that amount compared to the distributing version. But you can look at the Dis. version to get an idea of the percentage of dividends: www.justetf.com/en/etf-profile.html?isin=IE00B3RBWM25
Hi, I live in the Netherlands and was considerino Trade Republic. I waa wondering: do I need to declare the amount of money I have in TR getting a 4% interest? And what about if I buy some ETFs? I am asking because I understood it is declarative, therefore I need to declare. What is the disadvantages with ad administrative bank/broker?
Thanks for the video Angelo, what's your opinion of the bond product that Mintos started offering recently?
My pleasure! Could be interesting, as Mintos is focusing on high yield bonds. I'll look into it more this month and report on it in my next monthly update!
Hi Angelo, Thanks for your efforts. I am located in Belgium and still using Degiro. The advantage for me is they deal with the taxes Belgium transactions tax. Does Trade republic do the same or do I need to file them myself?
You're welcome! You would still need to file them yourself. They do provide you with a yearly tax report though, which would hopefully make it easier to calculate.
Hello Angelo, thank you very much for your videos. I learned a lot. Have one question. Is it possible to transfer etf that i buy on trade republic to interactive brokers. If it is, i'd love to see a video about that, step by step. thanks in advance.
Yes of course that's possible, as Trade Republic supports transfers in and out (at no cost). So far I've only transferred some shares from Scalable, Smartbroker and Degiro to IBKR, here's what that looked like (steps will likely be similar): ua-cam.com/video/1IT9O5WyF30/v-deo.html
Quick question. Does trade republic also offer Swiss government bonds and Swiss corporate bonds ?
They only have corporate bonds for Nestlé as far as I can tell for Switzerland
Great video! I actually tried it but the support is the worst out there. It takes days to reply (only by email) and when they reply they might just copy/past information instead of answering your question which is a problem when you have 5k 10K in your account and need help. My tip - Test the support/safety...everything before and make sure it is good for you.
Thank you very much. I had no idea that I need to activate the 4% interests rate.
Glad I could help!🙏
Hi Angelo, thanks for your videos. I have an account at Trade Republic, is there any way to validate/verify that my shares and ETFs are really in my name? Thanks
Thanks for the video! Really useful and informative. I was wondering if you would have to pay taxes for the 4% interests in Austria…?
My pleasure! Yes, 25% in this case. So it's 3% after tax effectively in Austria
Absolutely. As a simple rule, if you make money, you have to pay taxes. (at least in Austria)
So by choosing foreign accounts, which are non-tax-easy ("steuereinfach"), you'll have to make a tax declaration if you haven't already done one after the end of the year.
Yes! And be aware: here in the Netherlands we did some research, and probably this "savings account" won't be seen as such by the tax authorities. It is an investment account and will be taxed much higher than just a savings account. In all probability this is the case in the whole European Union. So if you only want the 4% and no investing; be aware.
@@kngkrmson2179does that mean the 100K insurance may be under risk cause this is an investment rather than a plain deposit?
Great video, i i have invested in SP 500 Eur(Acc) , could you tell me please if it is the right one? At least its description says it is the fund with the biggest 500 companies in the world and everything it is reinvested in the long run. I am a bit confused because i know you need an ETF in order to invest in SP 500.😅
Great info. So if I understand correctly only do these bonds for above the 50k. Because why would your buy bonds with
Thank you! At least that's what I do :)
I would say, without being certain, that you'll want those bonds at a lower yield in case you want to hold them for "longer term" in case you think the 4% interest will not last as long as your bonds. If the European Central Bank will lower the interest rates to lets say 3% in the next 5 months and then again to 2,5% afterwards, but you have now a bond that will pay you a 3,5% per year for the next 24 months you may be interested in locking this yield, in case you're not planing to need these money for the next 24 months. I hope this makes sense and answer your question.
Hey Angelo, great video. Done comparison between Degiro IB and TR on VWCE and found that Degiro and IB price is exactly the same and Trade Republic price is always 2-4cents higher. Have you found anything like that? Done comparison just now.
Thank you! Interesting, for me price was usually the same as purchases around the same time on Gettex (which IB also often uses via Smart Routing). I usually compare with trades around the same time here: www.gettex.de/en/gettex-die-schnelle-und-guenstige-boerse/?isin=IE00BK5BQT80&name=vangftse-aw-dla&token=a1e61ecc130db038818131e976cbc8e0
Hello! Great video, as usual :)
Quick question, if the interest is paid monthly, does it mean that TR takes into account the average cash amount for that particular month? Additionally, does this mean that the interest is compounded?! - I doubt, but just in case since they pay monthly no?
Thank you! The answer is yes to both :)
@@AngeloColomboFi woow! Nice to know, thx for your prompt reply!
Thanks Angelo, great and informative video again! Can you tell something about foreign taxes if IB will get these back for you at the end of the year equal to DeGiro in The Netherlands? Thank you in advance
My pleasure! I don't think so, Degiro might do that for NL-investors since they're based there. But you would most likely be able to minimize withholding taxes by going with ETFs domiciled in Ireland
@@AngeloColomboFi and otherwise, are there forms available to receive the taxes back from other countries like USA? Do you have experience with this or how are you doing this? Thank you in advance
Hi Angelo, nice video. I've got TR but my doubt is if this 100k protection applies to my account or to the whole account (cause my cash is mixed in a comun bank account with other users cash in the banks that collaborate with tr). Thx
Thank you! The 100k protection applies to each investor, as confirmed by the BaFin (German regulator) and Trade Republic to me. They would never be allowed to advertise it or state it all over the app/website otherwise either.
@@AngeloColomboFi thanks! And enjoy your new bond from my country jaja
Another great one Angelo, thank you for that!
You didn't mention taxes here but I guess it's relevant for anyone investing from Austria as TR is not tax-simple here yet.
What are your experiences with doing tax-report on the interest rate you earn from the Trade Republic? Is it too complicated?
Keep up with the great videos!
Thank you Nikola! The first report including interest earnings for 2023 should come out in 1-2 months, I'll let you know then! Based on previous reports it should be pretty straight-forward though, in this case interest earned will likely need to be filed under "861. Ausländische Kapitaleinkünfte (Zinsen)" in your tax returns, where it is taxed at a 25% rate.
Nice video Angelo. In video you invested in bonds 500€ with 3.8% p/a isn’t better just leave in cash for 4%? What you recommend better for holding S&P500 (500000€ portfolio) for long time in trading 212 or Trade republic? Which is more secure?
Thank you! Well yeah, but it's such a small difference on 500€ until January and I'd like to experience first hand how bonds are repaid :)
Among the two I would definitely go with Trade Republic (no share lending and you can transfer shares somewhere else, you're not locked in like on T212).
Hi Angelo. TR is having an escrow account opened at Citibank Europe as a depositor while TR clients are marked as beneficiaries. Is the deposit guarantee for each beneficiary or just for the depositor? What is your view on this?
The deposit guarantee is for each beneficiary (investor), otherwise the German regulator (BaFin) would never allow them to state that anywhere on the website or app - this has been confirmed to several investors who contacted the BaFin directly. Additionally, the Citigroup is systemically important for the banking sector, reducing the risk of bankruptcy (and the need to enforce the deposit guarantee) in the first place: en.wikipedia.org/wiki/List_of_systemically_important_banks
Thanks for your videos. Is it possible to transfer from TradeRepublic to IBKR? I am just starting and I think the saving plan with TR is free compared to IBKR but on the long run IBKR gives more geographical flexibility. Ideas?
My pleasure! Yes of course, you can transfer shares between the two brokers for free.
Hi, thanks for your videos. Just a question, do you hold a separate TR account and your wife has another one? Or do you have one together?
We each have our own, also because we're taxed as individuals even as a married couple in Austria
Great video! Thanks!!!
Are there inflation protected bonds or something similar here in Europe, like the Americans have?
I'm only aware of inflation-linked global bond ETFs, but those hardly seem to be protecting against inflation (in €) and also crashed 10% or more last year. So I would personally stick to euro government bonds directly
@@AngeloColomboFi Thanks 🤗
Great video Angelo!! I was wondering why can’t I buy bonds of countries outside the eurozone like Japan and US. I’d rather invest in bonds of countries that have currency sovereignty personally
Thank you Sean! You'll have to use IB for that: angelo.fi/ibkr
On Trade Republic they want to make bonds as easy and accessible as possible to everyone. They wouldn't be able to show investors an expected return, since there would be no way to predict currency fluctuations (USD-EUR, JPY-EUR etc).
@@AngeloColomboFi Great thanks as always!
Do you guys know what happened to their Interface this morning? It seems totally changed? Im the only one?
Hey how are taxes handled with trade republic 4percent interest gain or ETF gain if I reside in Austria , just like you 😊
Thanks
You get a tax report from Trade Republic for 2023 a month or so before you need to file them in Austria (June 2024), which includes how much interest you earned - you then enter that amount in your tax returns, where it is taxed at a 25% rate.
Hi Angelo, a question regarding payout of the interest rate amount: does it go to your personal bank account after 1st day of the month or you have to request manual withdrawal? I just see the first amount available and invoice stating German account number. Thank you.
Hi Ann, interest is credited to your Trade Republic account balance on the 1st of each month. You have to withdraw the funds to your external bank account yourself if you want them there
Noted, thanks a lot for support :)
4% interest pa or pm ? You mentioned in the starting month and later in the video shows pa. A bit confused.
4% p.a.
Interest is simply paid out at the start of each month
Thank you for sharing once again interesting information! I have a question... if TR applies TAX to the earned interest or I need to apply the TAX individually in TAX Statement?
My pleasure! Unless you're based in Germany (in that case they would do taxes for you), then you'll need to tax the interest you earn in your home country yourself. They do provide a yearly tax statement though :)
@@AngeloColomboFi do they provide a tax statement for all the investments you have in the account? also for Italy?
Yes. According to the support page:
"Qualche mese dopo la chiusura dell’anno, ti forniremo un resoconto fiscale riepilogativo della tua attività nell’anno appena concluso. Tale resoconto replica la struttura e le voci del Modello Redditi Persone Fisiche, così da semplificare il processo di dichiarazione dei profitti/perdite."
@@AngeloColomboFi great, thanks for the answer!
Hey Angelo thanks for the great video.
Ive just added cash into the app, and im looking to activate my 4% interest which I cant find. The only message i got is that "interest rate is pending" but again, no activate feature. Perhaps you can help me out?
I cant find too
Hey Angelo, I have been trying to read about the back up because the 4% interest rate is very high. I was wondering if you did any research on the backups and if you have any concerns?
What do you mean by backup? Your cash is secured by a 100.000€ bank deposit guarantee, it doesn't get much better than that
Hello, thank you for your video.
I am new to this app and I installed the app just 2 days ago.
I see the interest rate is already 4%. And i dont see any activate button in the app as you mentioned in the video.
Is there anything else i have to do to activate the 4% scheme or is it by default activated ?
Thanks in advance
Good to know, seems like that's the default for new users :)
In that case most likely only existing users had to manually "upgrade" from the 2% rate (since January).
Hi Angelo, thanks for the video! I am from the Netherlands.
I would like to start investing in ETFs through the Trade Republic app.
I see the same ETF's with just one difference: EUR or USD. Does it matter which one to pick?
Another question, what do you prefer; accumulating or distributing ETFs?
My pleasure Susanne! No, that's just the fund currency (almost always USD), which they sometimes write into the title for some reason. But you always trade them directly in EUR, so it doesn't matter. I prefer accumulating ETFs personally
Hallo Angelo,
Wich Brocker is good for day trading and long term investment (Austria )?
Trade Republic is definitely a lot better suited for trading due to its much lower fees, but I generally recommend Flatex if you're based in Austria and don't want to deal with taxes yourself (especially when it comes to ETFs): angelo.fi/flatex
I know Trade Republic is working on becoming tax-easy as well though, hopefully next year.
Hey Angelo,
one more question about trade republic.I just finish with my registration and i start looking on the app and i founf if you go 1"other services" 2"enter share register" and the question is do i need to activate this options so all my shares and etf be register on my name and details to be the legal owner or i dont need to to anything with that and anyway everything that i buy once i get them they are already register on my personal details?
That should only be relevant if you're holding single German stocks as far as I can tell, where they would then enter you by name into the share register against a small fee for each stock, so that you can also vote, go to general meetings etc. All shares of stocks and ETFs you own already belong to you exclusively and are fully segregated from Trade Republic as a company.
@@AngeloColomboFi Thank you Angelo!
I read a lot of comments about the many bugs that are in TR , is the platform itsalf that bad?
Hi Angelo! I cant seem to find information but is the tax already deducted by trade republic when paying interest to your savings? I recently put some money but im not sure if this is automatically deducted
Are you based in Germany? If not, then nothing is deducted and you need to file taxes yourself using the tax report Trade Republic creates for you once a year.
Great video! Thank you!
Can someone explain why I should buy bond of 3.8% if just keeping cach at TR woulr yield 4%?
Thank you! 🙏
Bonds make sense if you have over 50k you want to earn interest on (or if you want to lock in rates if you think they'll decrease), otherwise I also feel that the 4% with instant liquidity directly on Trade Republic is the best offer right now
@@AngeloColomboFi thank you for clarification, Im new in bonds:) last question on this one, do I understand correctly, you can fix good rate(lets say4%) for longer but cupon price can drop, meaning if I buy bond for 1000Eur and by then end of the term the value of bond can drop by 20%, i would go only making with (1000eur -20%)* 4%? Or 1000* 4%?
Since I just landed to DE: what are the places to consider for keeping term deposits in Germany? Preferably online, 100k guarantee& smooth process:) if you have video in this one pls share!
@@mrinke643 If you hold the bond to maturity you'll get all your money back. Just in case you sell when the price is lower you'll loose money, in case the price rises you'll sell for more, but stop getting the coupon.
Hi Angelo, you just gained a new subscriber! Quick question: So is 4% for deposits up to 50.000€ and 2.4% for amounts exceeding 50.000€, right? Thank you so much for the content!
1. Yes, 4% up to 50.000€
2. No, the amount exceeding 50.000€ doesn't earn any interest. You could put that into short-term euro government bonds though, which are yielding >3,8% p.a. :)
@@AngeloColomboFi thank you so much! Please keep up!
I did the explained procedure for the 4% interest but when I get to the part on 02:56 instead of Activate it originally just said Pending and does not allow any action further@@AngeloColomboFi
All good, it seems like only old Trade Republic customers needed to manually "activate" the 4%, since we were earning 2% before since January.
Interesting video and great information! Which do you prefer: Trade republic vs Interactive broker?
Thank you! I like using both, they each have their pros & cons. I buy most of my ETF shares on IB, while I hold my cash reserves on Trade Republic. There I also buy more ETF shares right away when the market drops, which has been happening recently.
Why not keep buying more shares on IB when the market drops?
Your opinion about ibrk are moving to Ireland from Hungary and reduces insurance from 100.000 € to 20.000?
Good question, I'm curious about that too.
There were tons of complaints from customers that wanted to move to IB Ireland, since they didn't want their investments to be held in HU and I think you couldn't earn interest on cash, which is probably why they chose this step.
Unless you're using a margin account and using the stock yield enhancement program where you can choose to loan out shares against interest payments, then your assets are always fully segregated from IB as a company and exclusively belong to you. In the extremely unlikely scenario IB were to ever go bankrupt, your assets can not be touched and you'll be able to transfer them over to another broker. Thus the extra insurance (the low 20k limit is sadly the EUs fault) should never be needed. Also, "Interactive Brokers Ireland Limited ("IBIE") custodies certain of your securities positions with its US affiliate, Interactive Brokers LLC ("IBLLC")", where they are protected by SIPC up to $500k. I'm still trying to figure out when that's the case exactly.
Hi Angelo, I am tax resident in Austria. I have my ETF investments in Flatex but I’m consenting changing to Trade Republic for its conditions. Would you move all the ETF shares to trade republic or would you have shares in two different brokers?
Thanks for your videos!
I would leave your existing shares on Flatex, since it doesn't cost anything and they'll do taxes for you. Meanwhile on Trade Republic you have to file them yourself on a yearly basis, but they do provide you with a yearly tax report which helps a lot. My pleasure!
PS: If you're in Austria, you could try the referral code ANGELO20 when signing up via my link: angelo.fi/tr
@@AngeloColomboFi would it be possible to provide some insights/references into the income tax declaration process in Austria (received via Trade Republic)?
Angelo, I signed up on trade republic through your link but its asking if I have a referral code. Do you have one?
Thank you, I really appreciate you using my link! :)
You could try the code ANGELO20 - although I’m not sure if they’re still running a stock promo on it or anything like that for people that sign up.
@@AngeloColomboFi the code doesnt work anymore. But that is ok. I thought I needed it for you to get your referral.
Hi Angelo, great video as always. I am looking for a passive income type inestment for future. While I am also investing in accumulating etf, I am assuming the only way to use the invested money is to sell when needed. If this is correct, isn't dividend paying investment a better option? Any advice what could works better?
Hi Gaana, thank you! It depends on what you want. If you're motivated by seeing regular cashflow paid out to your account, which perhaps you want to spend right away, then a Distributing ETF might make more sense. Meanwhile, an accumulating ETF, which reinvests dividends within the ETF is more tax-efficient in most countries for the long-run. Here's my take on it when it comes to early retirement: ua-cam.com/video/b_TXq9H8prQ/v-deo.html
Dividends are irrelevant performance-wise. Selling a part of your shares is equivalent to a dividend, with the difference that you can control the amount, and as a slight minus, you may have order costs, but I think the benefits outweigh the disadvantages for a rational investor. Psychologically, dividends are easier to take for many investors, though it also leads to overspending, as they're seen as free money, which they aren't. Your choice whether you want to base your investment on psychology or performance. If you fear that you might irrationally sell too much, especially in downturns, then maybe there is an argument for psychology.
I don't see the manual activation option in my app. Is this an update?
No need to look for it, it was only for old existing users at the time
Basic math suggests that if a bond has an annual interest rate of 4%, in a 3-month maturity period, we should be looking about 1% in interest, is that correct?
Yes!
Ciao Angelo, it's a pleasure to get so many information regarding how to invest. I live in Germany and I need to get more info about the taxation here, could you please provide some link? 😅
I live in Austria, no idea why you're asking me 😅
I would say just stick to Germany-based brokers like Trade Republic or Scalable Capital. Those take care of any taxes for you if you're a German resident, so you don't have to think about it :)
@@AngeloColomboFi thanks anyway for the answer :)
Question from a newbie, why would I invest in a bond that gives less than 4% short term of trade republic gives 4%? I get for the long term ones but getting 3.7% to not have cash until Jan 2024 doesn't seem like the best option. Might be a silly question
Because I wanted to test buying my first bond and holding it until maturity (January) myself. That way I'm able to experience what happens at every single step, which might be useful if ECB rates change and I end up buying more bonds. The difference in interest was tiny on a small amount (500€) and it's only running 4 months anyway.
Ciao Angelo, thanks for the video! I have some questions, hope you can reply to me!
1 - I've not understood (min 12.40) if for the first 50k€ you actually earn just 2.4% instead of 4%?
2 - Do you know what is the tax rate in Italy and in Spain for this 4%?
3 - Savings plan would be the PAC (italian terminology)? So in this case the offer is the same as SC, right?
4 - what is the trading fee for a bond?
5 - can you buy bonds through savings plans?
Thank you very much!!!!!
Hi, to the best of my knowledge the tax in Spain for funds interest profits is 19%, I imagine it would also be this for foreign saving account profits. In Spain the banks retain the 19% directly, for TR of course you will need to declare it in your tax declaration. Rgds
@@williampegram I think that's exactly how it works in Spain, 19% on capital gains. As you say TR doesn't retain anything, you pay it on the tax declaration next year, april to june.
Thank you for the video ! In case of the Spanish bond, I understand that it is less interesting than the 4% that Trade Republic pays on your passive cash isn't ?
Yes, the 4% offer directly from Trade Republic is still more attractive, I just wanted to test out a short-term bond from start to finish, which will be repaid tomorrow.
Hi Angelo, many thanks for your advices ! Is it a good idea to invest directly with USD currency on IBKR or trade republic ? I think I made a mistake since I deposit both 20euros and 20dollar on the same IBKR account
My pleasure! If you have to exchange currency from EUR to USD first, then no, as you'll be paying some conversion fees. On Trade Republic you can only deposit & invest using EUR anyway.
Since I have Revolut I have not payed any conversion fees but the bank of IBKR in USA charged me 0.32$ because I wanted to deposit 20$
In the end it is better to deposit only EURO in IBKR isn't it ? Thanks by advance ! @@AngeloColomboFi
Yes, I would only deposit EUR directly to IB, since most European banks charge fees when you want to send USD somewhere
Dear Angelo, thank you for this informative video and the clarification! I found this saving plan exciting, but what do you do with the taxes issues in Austria from the interest\gains you make? Did you hire a tax advisor? What do you advice for those who live in Austria, want to use an English platform like Trade Repblic or Interactive Broker, yet are worrying about the taxation complication?
Trade Republic creates a yearly tax report for you, specifically for Austria, which summarizes what you need to put into your tax returns (from interest, ETFs, stocks etc.). But you'll still need to file taxes that way on a yearly basis. If you don't want to deal with that at all, the only option for ETFs is Flatex: angelo.fi/flatex
I liked the vids and want to start using trade republic so i thought id use your link.. but they are asking for a referral code which i cant see in your comments..id like to support your vids
That's very kind of you, thank you! If you used my affiliate link then you're already supporting me :)
Sadly I can't share referral codes publicly
Excellent video angelo. ! Is it possible to send my shares of vwce to Interactive brokers after some years and if yes can you show us any kind of video on how to do it. Thanks !
Thank you! Yes of course. In this video I show you how it worked for transfers from Degiro, Scalable and Smartbroker to IB, Trade Republic will be pretty much the same (transfers are free): ua-cam.com/video/1IT9O5WyF30/v-deo.html
@@AngeloColomboFi thanks again for instant reply. Keep going with your excellent content.
I do not see the option for activating the 4% interest rate on the app.
Seems like that was only necessary for existing users when they made the switch from 2 to 4% per year :)
Has TR become your one-stop shop over IB?
To earn interest on cash and now for bonds yes, for ETFs IB still remains my number one. But that's just personal preference :)
Bank of Scotland (Germany) is offering for Tagesgeld account a 4% too (2,5% ordinary + 1,5% bonus until end of this year).
Nice, sadly you have to tax bonuses at the income tax rate instead of 25% in Austria, so it's a lot worse in comparison :/
Did the app change? I can’t find the activation
Check under cash - benefits (at the bottom). Is it showing Interest (4%)?
How would you compare Revolut and Trade Republic for ETF's?
Trade Republic is miles ahead in my opinion, also because you can transfer your shares to another broker whenever you want, a feature that is essential!
thanks @@AngeloColomboFi
Hi Angelo ! I don't understand why you were so doubtful regarding investing in bonds. Actually you invested 500 € for this spain bond you should get 519€ in january, is there a risk to get less than 519€ ?
Thanks by advance ; )
I just didn't see the point so far, bonds have only become interesting this year with the higher rates :)
No, I have zero worries about the repayment, especially since I'm only interested in short-term euro government bonds with good ratings.
Does anyone know why I get interest on the money it is under earned interest but it doesn’t add up to my cash as if I couldn’t access it
At the start of every calendar month you get the accrued monthly interest paid out to your cash account (my last payment was on Dec 1st, 19:43), after which you can fully access your earnings!
Legend! Thanks for the reply, love your videos
is the 4% interest for uninvested money taxed just like stocks/ETFs? How much time it takes to withdraw?
Thank you for the content.
Depends on your country's tax laws, in Austria I need to tax it at 25% compared to 27,5% for stocks/ETFs. I usually receive withdrawals the next day, but according to Trade Republic it can take up to 3 banking days.
Hi,if no money goes back to my bank account need to tax anyway yearly?
@@AngeloColomboFi
Unfortunately, I cannot use Trade Republic in Poland... For some reason, it was blocked... Are there any other brokers with APY on cash?
Sadly they only take on users from eurozone countries, since you can only trade in EUR :/
You could look at IB: angelo.fi/ib
Have you looked at the new term bond ETFs fron iShares? Eg IB26 or IB28 (there are more coming out fpr both gov and corp bonds). they allow to invest in a portfolio of bonds but all at same duration, ie. getting your capital back when term is reached. So dealing with the big issue that we know for bond ETF's which are mainly about speculating on rates and not protecting ypur capital while earning interest. Suggest a video about those new types of bond ETFs which seem to be very promising
I have, but I'd rather have the portion of my portfolio that I want to keep safe from volatility directly in cash paying 4% on Trade Republic or short-term euro government bonds paying >3,8%. Corporate bonds like the ones you mentioned carry more risk compared to these two options.
Please make more videos about the bonds in Europe, all of the videos on the internet are for Americans. I cannot figure out why the price of DE0001134922 is constantly decreasing.
Which broker is better in Germany, Scalable or Trade Republik?
Due to the 4% on cash for all users and the option to buy fractional bonds I'd argue Trade Republic is better right now overall, but Scalable is still a great choice
Very well explained. However, why buying a bond with 3.86% return when you have a 4% p.a. in your uninvested money?
There's a limit of 50,000
Thank you! I just wanted to buy my first bond and to have first-hand experience with how this works on Trade Republic. Since it was only for 500€ and it matures within a few months, the difference in returns is tiny anyway. I agree, the 4% directly from Trade Republic are the better offer right now (up to the 50k limit) :)
The 4% yield won't last forever, and the bond yield is warranted for the lenght of your bond if you hold to maturity.
Why did you buy the spanish bold that just pays 3.8% when, if you leave the money uninvested in your account, you would get 4%?
I wanted to test buying my first bond and see how repayments work (end of Jan.). It was only 500€ for 4 months anyway, so no big deal
Hi Angelo I live in Holland I am normally used Etoro for trading but the commissions are pretty higher, which broker do u recommend me..Trade Republic? Or interactive Brokers?Greetings.
Both IBKR and Trade Republic are great options for Dutch investors: ua-cam.com/video/4B05bx3pHT8/v-deo.html
They also enable you to transfer your shares to another broker for free in the future, so you're never locked in
@@AngeloColomboFi thanks for ur answer.
Is there any question over the €100000 bank guarantee scheme for uninvested cash? I know we get an IBAN from Trade republic but do we not need an individual bank account in our name in the bank where the money is held to avail of the guarantee scheme?
No, every investor's funds are secured up to 100.000€. Trade Republic is a strictly regulated broker, they would never be allowed to advertise it that way if it wasn't the case. The German regulator BaFin also confirmed the 100k protection is for each individual investor :)
@@AngeloColomboFi thank you for the reply and for making the videos. I get a lot from them. Have a lovely holiday!
You too! 🥂
Hello Angelo, I really appreciate you speak very fluently English. I am not german native and it is very difficult to understand the topics explained in German. Also, your casual attitude (friendly) instead of very serious attitude (compared to USA, subject is seen as very serious in Germany, is my impression). I checked application of Trade Republic. I am wondering if transaction 1 Euro for purchasing bond (not an ETF) is all the customers have to pay? Or there will be stock exchange cost, Makler cost, etc...? (in Flatex, they say 5,99 euro is Flatex transaction cost ,but then cost from stock exchange is depending on the amount of the investment... so it can be more than 22 euro at a time for single purchasing action).... Please let me know if you know it!
Thank you, hearing that makes me very happy! Luckily the flat 1€ fee on Trade Republic includes everything on your end and doesn't change depending on the amount you invest. You also pay the same low 1€ fee when selling. Yes, Flatex is very expensive for direct orders (saving plans are fine at 1,5€/order).
Thank you Angelo... with your reply, I really think that Trade Republic will revolutionize the trading brokerage world... one euro for trading a bond (real bond, instead of an ETF) with the very expensive stock exchange cost on top of brokerage cost, I think they will have to reconsider their price strategies... Investing into US bond, directly from US brokerage firm does not cost a dime... Europe (Germany) is unbelievably expensive to trade... but hopefully Trade Republic will change it
Hope so too! 🤞
Does it make sense to buy a bond for 3 percent when call a money account like vw bank garanti 4% interest for 6 months
Why not grab the 4% offered directly by Trade Republic with a 100k bank deposit guarantee?
Thanks @@AngeloColomboFi I just read trade republic website and there is no Guaranty and limit is 50K not 100k.
Of course there is a 100k deposit guarantee, which you'll also find on the website, app etc.
"All funds in the cash account are legally protected up to €100,000 per investor."
Meanwhile 50k is the limit until which they pay 4%