Trade Republic Matches Rivals With a Free Retirement Account

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The price war over the successor to Germany’s Riester pension has hit zero: Trade Republic is offering its new state-subsidized retirement account, the Altersvorsorgedepot, completely free of charge. There are no custody fees and no costs for savings plans, and dozens of E.T.F.s will carry no fund costs over the long term. The Berlin-based neobroker is responding to its Munich rival Scalable Capital, which has already shaken up the market with a similar offer.

What the Altersvorsorgedepot Is

The Altersvorsorgedepot is the centerpiece of Germany’s reform of private retirement savings, which the Bundestag passed this spring. Starting in 2027, it is set to replace the Riester pension. Unlike Riester, it does not require a capital guarantee, so savers can invest directly in E.T.F.s and funds. Returns remain tax-free until retirement, and contributions are tax-deductible.

The state also chips in: According to Trade Republic, savers can receive subsidies of up to €540 a year, up to €300 per child per year and a one-time €200 bonus for people starting their careers. The offer is aimed at savers in Germany; Austria has no comparable subsidy model.

Trade Republic’s Offer

• No custody fees: The Altersvorsorgedepot carries no ongoing custody costs.
• Free savings plans: The regular execution of savings plans is also free.
• E.T.F.s without fund costs: Several dozen of the most popular E.T.F.s from BlackRock, DWS and Vanguard are set to be offered without fund costs over the long term.

“With the new Altersvorsorgedepot, Germany is among the world leaders in state-supported private retirement provision,” said Christian Hecker, a co-founder of Trade Republic. What matters now, he added, is that this support actually reaches people and “doesn’t get lost in high fees charged by banks and insurers.” To mark the launch, Trade Republic is running its biggest advertising campaign to date on TV, radio and billboards, featuring real customers.

The neobroker can afford the free model: Trade Republic generated €754 million in revenue in its 2024/25 fiscal year and increased its profit nearly sevenfold, mainly thanks to commissions from its securities business. More than 10 million customers already use the app, many of them with savings plans.

Scalable Capital Went First

Scalable Capital started the price war. In August, the Munich-based neobroker announced a standard account that is free in the first year and then costs at most 0.15 percent a year in product costs. Last week, Scalable followed up with an Altersvorsorgedepot for self-directed investors: Savings plans are free, and trades cost €0.99, or nothing with the PRIME+ subscription. For 16 E.T.F.s, including Scalable’s own global E.T.F., the company credits back the fund costs and reinvests them through a “Rentenbonus” (pension bonus). “Anyone saving for retirement must not be held back by fees or guarantees,” said Erik Podzuweit, Scalable’s founder and co-chief executive. Scalable also recently opened a bank branch in Vienna.

Established providers, by contrast, sometimes charge considerably more:

• Smartbroker: Only the E.T.F.s’ own fund costs apply, roughly 0.03 to 0.2 percent a year depending on the product.
• Deka: The savings banks’ standard account costs 0.1 percent of the account value a year.
• DWS (Deutsche Bank): The digital standard account costs 0.1 percent a year for the first two years and 0.28 percent after that. The self-directed account costs 0.99 percent.
• Fidelity: 1.35 percent in product costs plus an account fee of €24 a year.
• ING: Has set up a waiting list; terms have not yet been announced.

Lawmakers have capped costs for standard products at 1 percent a year. That cap does not apply to accounts in which savers make their own investment decisions, where providers can set prices freely.

No Need to Rush

Despite all the advertising, consumer advocates urge calm. Stiftung Warentest, Germany’s leading consumer testing organization, stresses that there is no reason to hurry: The state subsidy for all of 2027 can still be claimed retroactively in December 2027. Retirement savings are among the most important financial decisions most people make, it says, so savers should inform themselves thoroughly before signing up.