Consumer group sends Trade Republic a new warning over its interest opt-in design
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What happened
The Verbraucherzentrale Baden-Württemberg, a consumer protection group, announced in a press release on Thursday, October 15, 2026 that it had again sent Trade Republic a warning letter (Abmahnung), WirtschaftsWoche reported. The letter concerned the broker's cash interest offer. Trade Republic has paid interest on customer deposits for three and a half years at the ECB deposit facility rate, currently 2.5%. Interest is credited only to customers who activate the offer, a requirement in place since the offer launched in 2023. The group said the information about activation was hidden behind a very inconspicuous field, while the broker advertised 2.5% without conditions.
The group also objected to terms that let Trade Republic keep certain third-party payments, and said the split of deposits between partner bank accounts and money market funds, which have no deposit insurance, was not transparent. The dispute followed a WirtschaftsWoche report in early 2025, after which Trade Republic received earlier warning letters; the two sides reached a settlement in summer 2026. Trade Republic declined to comment on the warning, and a spokesperson said the activation requirement is clearly shown in the app and on the homepage.
Key points
- The consumer group announced a further warning letter to Trade Republic on October 15, 2026.1
- Interest is paid at 2.5%, the ECB deposit facility rate, but only after customers activate it.1
- Over 92% of customers who deposited at least 100 EUR activated the product, per a Trade Republic message the group quoted.1
- An earlier dispute ended in a settlement in summer 2026; the article gives no penalty amount.1
- Trade Republic has more than ten million customers across Europe.1
Why it matters
The challenge targets how the 2.5% cash interest offer is presented to customers. A warning letter is a demand from the consumer group, not a court ruling.
This is a further warning after earlier ones and a summer 2026 settlement, so the same product has drawn scrutiny more than once. The article gives no financial exposure.
With more than ten million customers across Europe and over 92% of qualifying depositors activating, the opt-in design touches a large user base, though how many missed it is unknown.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series C | May 20, 2021 | $5.3B | $900M | Sequoia |
| Series C extension | Jun 3, 2022 | $5.4B | $268M | Ontario Teachers' Pension Plan Board |
Updated
Fact-check
- The Verbraucherzentrale Baden-Württemberg announced a new warning letter to Trade Republic on October 15, 2026.Confirmed by [1] WirtschaftsWoche: the group announced in a press release on Thursday that it had again issued a warning letter; the article is dated Thursday, October 15, 2026.Verified
- Trade Republic pays interest at the ECB deposit facility rate, currently 2.5%, for three and a half years, and customers must activate it.Confirmed by [1] WirtschaftsWoche: interest on deposits for three and a half years at the ECB deposit rate, currently 2.5%; activation has been required since the 2023 launch.Verified
- Over 92% of customers who deposited at least 100 EUR activated the product.Stated in [1] WirtschaftsWoche as a figure from a Trade Republic message to some customers, cited by the consumer group; it is the company's own figure, and the article notes how many did not activate is unknown.Verified
- The dispute began after a WirtschaftsWoche report in early 2025 and an earlier round ended in a settlement in summer 2026.Confirmed by [1] WirtschaftsWoche: its report early last year, earlier warning letters, and a settlement in the summer; no penalty amount is mentioned.Verified
- Trade Republic has more than ten million customers across Europe.Confirmed by [1] WirtschaftsWoche.Verified
Sources
- [1]WirtschaftsWoche (opens in a new tab)Neobroker: Verbraucherschützer mahnen Trade Republic erneut abEine Gutschrift erhält nur, wer die Offerte auch aktiviert hat.
