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With the discount brokers JustTRADE and Trade Republic Investing on the capital markets has become somewhat easier. Two of the recently introduced first mobile commission-free app and web services in Germany. In the article Smartbroker vs Trade Republic (test & experiences) we have already compared 2 newcomers with each other. Here it goes in a similar style. Because mobile brokers enjoy Google search queries and also in the depot comparison growing popularity. Therefore, in this article, we leave the two brokers JustTRADE vs Trade Republic compete against each other.
With the apps from the providers Trade Republic and Justtrade, investors can buy and sell on the stock exchange. Stocks, Exchange Traded Funds (ETF) and derivatives can be traded via the mobile app and the web interface.
UPDATE crypto trading at justTRADE
“When trading crypto with justTRADE, customers benefit from low spreads and also pay no transaction costs or network fees. The custody of the crypto assets is also free of charge:
- Flexibility: Crypto and securities trading from one depot! Switch between security and crypto trades in seconds.
- Overview: free real-time push rates for all 7 trading venues
- Security made in Germany: Custody of the crypto assets at the German private bank von der Heydt in Munich
- Easy: no additional wallet required - intuitive trading system via app and web
- Fast: Trade intraday - execution of orders within seconds
- Choice: 5 cryptocurrencies – Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash
- account opening very easy and fully digital in just 10 minutes (incl. legitimation via video chat)
- Trade for crypto assets from as little as €50
- Trading crypto assets around the clock – 24/7 – including weekends”
Free brokers like JustTRADE or Trade Republic originate in the USA
Based on Robinhood's US-operated business model, both JustTRADE and Trade Republic hope to attract new customers. You hope this with a user-friendly app and free action to reach.
These fintech investment platforms have partnered with traditional banking systems in Germany such as Solaris Bank, HSBC, Sutor Bank and Citi Bank. These two broker startups raised large amounts of funds from investors. As a result, both have been able to develop a product that they can bring to the market cheap price able to offer. In principle, they hit him in the same vein as smart broker*.
The business model of discount brokers like JustTRADE or Trade Republic
The question people usually ask is how these companies pay their bills. After all, the brokers earn nothing from free trading. The main point of this question is what this article is aiming for in the next few lines.
For starters, both start-ups combine innovation and an extreme range of products locally and internationally to stay afloat. These innovations have helped investors register and invest in the stock market faster. It also has this younger generation easier to invest. With Fintech Apps and web-based services, today the genre of people investing in stocks, bonds, ETFs and derivatives has changed.
These startups have disrupted an already static market, forcing traditional brokers to innovate if they want to keep attracting clients. The use of technology has enabled Justtrade and the Republic of Commerce to gain a market share that is exclusive to them. The investors using the app are looking for something that traditional brokers don't offer yet.
In many other countries they adopt the same model. For example, we talked about how successful Robinhood was in the US market. It was the pioneer program in the US before sneaking into Europe. In Europe, the first pioneers were free brokers Flatex* and Degiro.
However, many people are still skeptical about the business model of Justtrade and the Republic of Commerce. Because of this, you may want to know the best alternative based on many parameters to assess. While individual settings can affect a user's choices, there are parameters where both apps or services perform better.
JustTRADE vs Trade Republic: Individual Stocks
At Trade Republic you pay one euro for the order, but you can also trade small sums, which simply does not work with Justtrade. For example, the minimum order volume for Justtrade is €500, while that for the Republic of Commerce is zero euros. However, Justtrade does not charge a fee for executing the order if the threshold of €500 is exceeded.
Trade Republic is therefore primarily intended for small orders. You should be prepared to pay the flat fee of €1 for each transaction.
The Republic of Commerce wins in this category. The flexibility to execute any transaction amount for a flat transaction fee is revolutionary. Coupled with savings from ETFs, this is brilliant.
Score: Trade Repulic:1 JustTRADE: 0
The JustTRADE vs Trade Republic trading platform
Trade Republic only has a mobile platform while Justtrade has a Web interface and a mobile platform has. A web interface is a clear advantage. This makes it easier for investors to keep track of things. Justtrade is therefore taking a step in the right direction with the additional web interface.
JustTRADE wins in this category. Trade Republic suffers from the limitations of a mobile-only platform. With justTrade you have a better overview of your orders through the desktop. This way you can possibly make wiser decisions.
Score: Trade Republic:1 JustTRADE: 1
Savings plans on stocks
Both fintech companies offer a wide range of stocks in Germany and other parts of the world. Trade Republic now also offers the possibility to create savings plans for individual shares. Here can 1,000 individual shares be saved. The savings plan can be set up from as little as 10 euros. This makes Trade Republic the first German broker to permanently offer free share savings plans.
JustTRADE, on the other hand, does not yet offer a savings plan, but says it has something in the pipeline. If you want a share savings plan, you should better use Trade Republic.
Score: Trade Republic:1 JustTRADE: 2
Does Trade Republic or JustTRADE have the edge in ETF trading?
This means that there is now another alternative for long-term investments in addition to the existing 300 or more ETF savings plans at Trade Republic. "With our expanded range, we are once again making a decisive contribution to increasing the German to democratize the capital market", explains Christian Hecker, one of the founders of Trade Republic
The commercial republic offers a good 300 ETFs. However, investors can Trade Republic on iShares products only access. On the other hand, Justtrade offers access to ETFs from Amundi, Luxor, Vanguard and many others. There is a total of justTRADE over 1000 ETFS. However, Trade Republic offers the automatic investment via a savings plan. Just Trade is still working on a savings plan offer.
Even if iShares certainly has good and cheap ETFs on offer, Justtrade is ahead in the ETFs category. Firstly, the provider JustTRADE has more ETFs in total and secondly, you can diversify better with different providers.
Score: Trade Republic:1 JustTRADE: 3
Questions and answers about justTRADE or Trade Republic
justTRADE currently does not offer any savings plans
Smartbroker savings plans can be executed on the 1st and 15th of each month. The repetition can be selected monthly, bimonthly, quarterly and semi-annually. Smartbroker executes the savings plans throughout the day. This happens more and more in the morning hours at 9:15.
OTC at Lang & Schwarz.
Justtrade is ahead in our test and an alternative to Trade Republic. But the Smartbroker also has a larger range of functions compared to Trade Republic and could therefore be more suitable for you. More about alternative brokers on Trade Republic.
Trade Republic offers the statutory deposit guarantee of 100,000 euros. This only applies to credit balances on the clearing account. Securities are protected as special assets. See also the Security section
justTRADE offers deposit insurance of EUR 1.3 million. You can find out more about deposit insurance in the Security section.
justTRADE calculates a negative interest rate of 0.5 % annually. With an amount of 10,000 euros on the clearing account, this corresponds to around 4 euros per month. However, if the money is only in the clearing account for a few days, the amount is negligibly small.
Other investment products such as certificates, warrants or derivatives
Derivatives, which are considered a risky asset class for someone with no exchange trading experience, are tradable on both Trade Republic and Justtrade. While the Republic of Commerce offers 40,000 derivatives in this regard, JustTRADE offers 500,000 and more.
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It is therefore clear that JustTRADE is also taking the lead in this category.
Score: Trade Republic:1 JustTRADE: 4
On which trading platforms you can trade with JustTRADE and Trade Republic
Any stocks, ETFs and other securities representing companies must be bought or sold on a specific trading venue. What used to be a hall in which securities could be offered for sale to others are now electronic trading systems. Trade Republic uses only one partner to process securities transactions. LS Exchange is an official partner of Trade Republic and handles the company's transactions between 7:30 a.m. and 11:00 p.m.
JustTRADE, on the other hand, uses two platforms viz Quotrix and LS Exchange. Over-the-counter trading at justTRADE is handled by institutes such as UBS, Citi and Vontobel. JustTRADE can therefore offer its investors several options to carry out transactions. It is important to note that LS Exchange and Quotrix are both connected to the Hamburg and Düsseldorf exchanges.
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Score: Trade Republic:1 JustTRADE: 5
JustTRADE vs Trade Republic: Available order types
Both brokers can accept common orders such as Market Limit and stop loss depict. However, offers JustTRADE also dynamic orders which are not available at Trade Republic. To the dynamic orders belong: Trailing Stop Loss and One Cancels Other.
Since dynamic orders offer more possibilities, the point goes to justTRADE. If you're not quite sure what the terms One Cances Other or Trailing Stop Loss are, you can read about the definitions here.
A market order involves buying or selling a specific number of securities at the next best price. In contrast to the limit order, the order is executed indefinitely. The price displayed by the broker is usually non-binding.
With a limit order, you buy or sell a certain number of securities at a predetermined price. The order will be executed as soon as the price of the security has reached your predetermined price limit. In addition, a limit order always has a validity period. The order will only be executed within the validity period. Your order expires at the end of its validity. You then have to set them up with the broker again.
The stop order will be executed as soon as the price of the security reaches your predetermined stop price. This is how you can limit losses. A stop order also has a validity period. The order will only be executed within the validity period. Your order expires at the end of its validity. You then have to set them up with the broker again
In the truest sense of the word, with a trailing stop-loss order, the execution price is always trailed behind the price if it is developing upwards.
This means that as long as the security is rising, the execution price is dynamically adjusted upwards. Always at a constant distance from the course. The execution price stays in place once the price starts falling. When the price hits the stop level, the trailing stop order is executed.
With a trailing stop order, you can protect your profits when prices rise.
A one-cancels-other order (OCO) is a two orders placed at the same time. If you hold a security, you place two sell orders at the same time with an OCO order: one below and one above the current price. In this way, you can automatically take profits and protect yourself from a sharp drop in the price. When one of the two orders is executed, the other is automatically deleted, hence the name of the OCO order.
Score: Trade Republic:1 JustTRADE: 6
Comparison of fees and costs at JustTRADE vs Trade Republic
With both Trade Republic and justTRADE, it doesn't cost much to keep a securities account. However, additional fees must be paid for certain special services: E.g. to register registered shares or for an invitation to a general meeting.
At Trade Republic, order execution is €1 per transaction. With JustTRADE, on the other hand, order execution is free of charge. Registering shares costs €2 at Trade Republic and €1 at Just Trade.
Negative interest at Justtrade
A negative point with JustTRADE is that negative interest is incurred for the clearing account. JustTRADE calculates 0.5 % per year. There are no annual interest expenses to shell out with Trade Republic.
Costs for the invitation to the general meeting
The Republic of Commerce charges €25 for an invitation to a general meeting, while justTRADE would charge you €15.
When it comes to fees, it depends heavily on what the investor wants. Both have different fees for each transaction. What works best for the investor in this category is what they should be aiming for over the long term.
It can be said that Trade Republic is aimed more at smaller investors and justTRADE seems to be better suited for larger volumes. At least as long as the money is not in the clearing account, but is invested.
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Score:Trade Republic:2 JustTRADE: 7
Are there differences in security?
Both fintechs work together with traditional banks. Although Trade Republic has a banking license, account management and securities processing remain with Solarisbank. The JustTRADE works together with the Sutor Bank, which also has many of the better interest rates money market accounts managed by Check24 or Zinspilot.
With justTRADE, the protection on the clearing account is better
The level of deposit protection differs between justTRADE and Trade Republic. The Republic of Commerce only offers the statutory deposit protection of €100,000. JustTRADE, on the other hand, has a protective shield of 1.3 million euros per customer.
It is also important to mention that the deposit insurance only for balances on the clearing account grabs. Securities are generally protected as special funds. Should the bank actually go bankrupt, the stored securities do not count towards the insolvency estate.
As special assets, securities do not fall under the protection against algae
If the Bank embezzled the securities not the deposit protection, but the investor protection. In contrast to the algae protection, this is only 20,000 euros. Deposit protection was increased in Europe after the financial crisis from 20,000 to 100,000 euros. The original maximum limit for investor protection, however, remained at 20,000 euros. Since investor protection is the relevant criterion, there are no formal differences between justTRADE and Trade Republic. So both get a point.
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Score:Trade Republic:3 JustTRADE: 8
Trade Republic and justTRADE have made it very easy to register and start trading. There is no paperwork to be done with either broker.
In summary, Justtrade is the battle justTRADE vs Trade Republic and the winner is. However, it is still the responsibility of a savvy investor to know how to use both platforms to their advantage.
Conclusion on our comparison of JustTRADE vs Trade Republic
If you only need a smartphone app for banking, you get it Trade Republic *an unbeatably cheap depot. However, if we evaluate this comparison objectively according to our criteria, lies JustTRADE* clearly ahead and thus represents a viable alternative to Trade Republic. The broker convinces with several trading places as well as app and desktop access. JustTRADE offers active traders cheap access to the global stock market. justTRADE is not suitable for ETF savers due to the lack of savings plans. For Buy & Hold customers is Trade Republic * the better choice. Especially because 1,000 shares can be saved free of charge as a savings plan. Trade Republic also offers securities account transfers: a feature that is not (yet) available with justTRADE.
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Disclaimer: This is well researched but non-binding information.