While German startup Trade Republic is better known as a mobile app that helps you buy and sell stock, the company is adding interest on uninvested cash. Users who hold cash in their Trade Republic account will receive 2% in annual interest.
This feature reminds me of Robinhood’s brokerage cash sweep program. In the U.S., Robinhood users currently get 1.5% interest on cash sitting in their accounts.
With this new feature, Trade Republic will likely attract new customers who are looking for higher interest rates as inflation impacts the savings of European consumers. Of course, the company probably hopes that users will also start trading stock with its app. Trade Republic makes money from payment-for-order flow and some small fees.
More precisely, Trade Republic says that interests will be calculated on a daily basis and the startup credits user accounts once per month. Users only genera …
