Financial and Business News

Trade Republic Hits €12.5 Billion Valuation in €1.2 Billion Secondary Deal

Wednesday, 17/12/2025 | 09:30 GMT by Damian Chmiel
  • The Berlin-based fintech raised new capital from Wellington, GIC, and Fidelity, as early backers cashed out shares.
  • Peter Thiel's Founders Fund increases its stake in the neobroker serving over 10 million European customers.
Trade Republic

Trade Republic closed a €1.2 billion secondary transaction valuing the company at €12.5 billion, cementing its position as Germany's most valuable startup.

Existing investors, led by Peter Thiel's Founders Fund, bought shares from early backers, while new long-term investors, including Wellington Management, Singapore's GIC, and Fidelity Management & Research Company, joined the shareholder base.

Trade Republic’s Valuation Jumps From €5 Billion in Three Years

The deal doesn't inject fresh capital into the company, which has been profitable for three consecutive years. Trade Republic had revenue of €340 million in the year to September 2024. The Berlin-based neobroker reported earlier this month it generated €34.8 million in profit after securing its full ECB banking license, with equity climbing to €566.5 million.

The secondary round more than doubles Trade Republic's 2022 valuation of roughly €5 billion. Other existing investors participating in the share purchase include Sequoia, Accel, TCV, and Thrive Capital, alongside new investors Khosla Ventures, Lingotto Innovation, and Aglaé, the technology investment arm of France's Arnault family.

Christian Hecker, co-founder of Trade Republic
Christian Hecker, co-founder of Trade Republic

Trade Republic has doubled its customer base to more than 10 million users in the past 18 months, with clients now managing €150 billion in assets across the platform. Co-founder Christian Hecker said 70% of Trade Republic customers are first-time investors, adding that the "cultural shift to retail investing in Europe is only starting".

“We launched in 2019 with a mission to help close Europe’s pension gap,” he added.

Expansion Follows Banking License and Product Rollout

The company obtained a full banking license from the European Central Bank in 2023, allowing it to expand beyond its original brokerage model. Trade Republic now offers current accounts with local IBANs, passes ECB interest rates directly to customers, and has distributed €2.5 billion in interest payments since January 2023.

This year the neobroker localized its offering in France, Italy, Spain, the Netherlands, and Austria, while launching in Poland in September. The company also introduced child savings accounts and expanded into new asset classes, recently giving retail investors access to private markets, fixed income, and a crypto wallet.

Pension Gap Drives Retail Investing Surge

Hecker pointed to Europe's widening pension gap as a driver for private wealth accumulation.

"This is more important than ever as the public pension system is under growing pressure to fulfill its promises," he said.

Recent surveys show 41% of Europeans still don't contribute to supplementary pension schemes, while state pensions across the EU are expected to decline from 46.2% of retirement income in 2019 to around 37.5% by 2070.

Germany and other European governments have started implementing pension reforms to encourage private stock ownership, a trend Trade Republic expects to accelerate. The company, which launched in 2019, operates across 18 European countries and holds a full banking license supervised by Germany's Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank.

Trade Republic closed a €1.2 billion secondary transaction valuing the company at €12.5 billion, cementing its position as Germany's most valuable startup.

Existing investors, led by Peter Thiel's Founders Fund, bought shares from early backers, while new long-term investors, including Wellington Management, Singapore's GIC, and Fidelity Management & Research Company, joined the shareholder base.

Trade Republic’s Valuation Jumps From €5 Billion in Three Years

The deal doesn't inject fresh capital into the company, which has been profitable for three consecutive years. Trade Republic had revenue of €340 million in the year to September 2024. The Berlin-based neobroker reported earlier this month it generated €34.8 million in profit after securing its full ECB banking license, with equity climbing to €566.5 million.

The secondary round more than doubles Trade Republic's 2022 valuation of roughly €5 billion. Other existing investors participating in the share purchase include Sequoia, Accel, TCV, and Thrive Capital, alongside new investors Khosla Ventures, Lingotto Innovation, and Aglaé, the technology investment arm of France's Arnault family.

Christian Hecker, co-founder of Trade Republic
Christian Hecker, co-founder of Trade Republic

Trade Republic has doubled its customer base to more than 10 million users in the past 18 months, with clients now managing €150 billion in assets across the platform. Co-founder Christian Hecker said 70% of Trade Republic customers are first-time investors, adding that the "cultural shift to retail investing in Europe is only starting".

“We launched in 2019 with a mission to help close Europe’s pension gap,” he added.

Expansion Follows Banking License and Product Rollout

The company obtained a full banking license from the European Central Bank in 2023, allowing it to expand beyond its original brokerage model. Trade Republic now offers current accounts with local IBANs, passes ECB interest rates directly to customers, and has distributed €2.5 billion in interest payments since January 2023.

This year the neobroker localized its offering in France, Italy, Spain, the Netherlands, and Austria, while launching in Poland in September. The company also introduced child savings accounts and expanded into new asset classes, recently giving retail investors access to private markets, fixed income, and a crypto wallet.

Pension Gap Drives Retail Investing Surge

Hecker pointed to Europe's widening pension gap as a driver for private wealth accumulation.

"This is more important than ever as the public pension system is under growing pressure to fulfill its promises," he said.

Recent surveys show 41% of Europeans still don't contribute to supplementary pension schemes, while state pensions across the EU are expected to decline from 46.2% of retirement income in 2019 to around 37.5% by 2070.

Germany and other European governments have started implementing pension reforms to encourage private stock ownership, a trend Trade Republic expects to accelerate. The company, which launched in 2019, operates across 18 European countries and holds a full banking license supervised by Germany's Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank.

Topics
trade republic
funding round
About the Author: Damian Chmiel
Damian Chmiel
  • 3103 Articles
  • 96 Followers
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.

More from the Author

Retail FX

Executive Interview | Drew Niv | Chief Strategy Officer, ATFX Connect | FMLS:25

Executive Interview | Drew Niv | Chief Strategy Officer, ATFX Connect | FMLS:25

In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX. We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers. We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.

In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX. We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers. We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
More Videos

  • Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25

    Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25

    In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity. Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe. A concise look at where compliance, onboarding, and AI-driven processes are heading next.

    In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity. Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe. A concise look at where compliance, onboarding, and AI-driven processes are heading next.

  • Executive Interview | Aydin Bonabi | Founder, Surveill | FMLS:25

    Executive Interview | Aydin Bonabi | Founder, Surveill | FMLS:25

    In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions. We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection. We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight. He closes with a clear message: fraud is scaling, and so must the tools that stop it.

    In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions. We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection. We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight. He closes with a clear message: fraud is scaling, and so must the tools that stop it.

  • Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town

    Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town

    Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/ #exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown

    Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/ #exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown

  • Executive Interview | Jas Shah | FMLS:25

    Executive Interview | Jas Shah | FMLS:25

    Interview with Jas Shah Builder | Adviser | Fintech Writer | Product Strategist In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity. We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market. We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance. To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.

    Interview with Jas Shah Builder | Adviser | Fintech Writer | Product Strategist In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity. We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market. We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance. To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.