Audi_Driver
Registered User
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- 56
My passport is out of date and they do not accept a drivers license, has any one tried to register with the public services card?
You can open an account if you meet the following criteria:
* You have a valid identification document (identity card or passport)
* ...
Haven't tried a PSC but Revolut don't accept it as it isn't classed as a national identity card. Give it a try and see.My passport is out of date and they do not accept a drivers license, has any one tried to register with the public services card?
I take the same view, and wouldn't put money on deposit with them I couldn't afford to lose.I could easily see the Central Bank paying out €100,000 in total to Trade Republic, or dividing it among all the beneficaries.
Deposit Guarantee Scheme
The Deposit Guarantee Scheme (DGS) protects you if you have money in a bank, building society or credit union that is unable to pay back your savings. This includes any money you have in your current account. The maximum you can claim under the DGS is €100,000 per person, per institution.
The DGS only protects savers who have deposits in financial firms authorised by the Central Bank of Ireland. Deposits held in institutions authorised by another EU Member State are covered by that country’s deposit guarantee scheme.
Investor Compensation Scheme
The Investor Compensation Scheme (ICS) protects clients of an investment firm that goes out of business. The scheme pays compensation when an investment firm authorised by the Central Bank is unable to return money or investment instruments it owes to consumers who invested with it. Such firms can include stockbrokers, investment managers, insurance brokers and agents. The maximum amount of compensation you can claim under the ICS is 90% of your net loss, up to a maximum of €20,000.
Are you a bank?
Trade Republic is not a bank and does not conduct deposit taking. We are a German securities trading platform and investment firm
How is my money protected?
All funds in the cash account are legally protected up to €100,000 per investor. They are held in an escrow account at one of our partner banks. These currently are Solarisbank SE, Citibank Europe plc and Deutsche Bank. Solarisbank SE and Deutsche Bank are subject to supervision by the Deutsche Bundesbank and the BaFin (Federal Financial Supervisory Authority Germany). Citibank Europe plc is supervised by the Central Bank of Ireland.
The securities in your custody account are not covered by the deposit guarantee scheme, they are your property instead. They are deposited by our custodian bank HSBC Germany in the corresponding depositories in Germany and abroad. Therefore, the securities belong to you for all purposes.
Are you a bank?
Trade Republic is not a bank
How is my money protected?
All funds in the cash account are legally protected up to €100,000 per investor.
Regardless of which partner bank holds your funds, here are a few ways your money is protected:
- Both Deposit Guarantee Schemes (DGS) protect up to 100.000 EUR per investor, per bank.
- Because your money is held in escrow accounts, it's kept separate from Trade Republic's assets.
- We only use the funds within the framework of our Customer Agreement with you, namely for providing financial services
And recieved a reply thatif I open an account, and should anything happen, I am going to be paid out my cash up to €100,000 from the deposit guarantee scheme?
In case of an insolvency from Trade Republic you are protected up to 100.000 EUR. Regardless of which partner bank holds your funds.
To which they replied:I went ahead and opened an account.
In the Deposit Guarantee Scheme document, there was this note:
In the name of our partner Citibank Europe plc (CEP) we want to point out the following:
„Trade Republic has opened an account as a depositor with Citibank Europe plc, Germany Branch. CEP is a member of the Deposit Guarantee Scheme of Ireland (DGS). The DGS protects claims of depositors up to €100,000. As Trade Republic has notified CEP that CEP is holding the funds placed in the account on behalf of Trade Republic’s underlying clients, CEP will mark the account as a beneficiary account on their records. Should the situation arise, it would be for the Central Bank of Ireland to investigate which underlying beneficiaries are eligible for protection.“
I am wondering what this means, are my funds protected by the DGS? The way I understand the statement above is that DGS covers depositors, and Trade Republic is the depositor. I am only a beneficiary on the account. My main question is whether the DGS extends to me as a beneficiary.
For example, lets say Trade Republic has 100 underlying clients, each with €10,000 in cash, with me being one of them. All the funds are stored with the same bank partner, totalling €1,000,000.
- If Trade Republic turns out to be insolvent, do each of the clients receive their €10,000 back directly? Is it the DGS that pays it out, or is there an agreement in the escrow?
- If the partner bank is insolvent, do each of the clients receive their €10,000 back? Does the DGS pay it out?
- Is there any situation where I would not receive all the money I have in cash, assuming I am under the €100,000?
Each Deposit Guarantee Schemes (DGS) protects up to 100.000 EUR per investor, not 100.000 for all of Trade Republic.
The full deposit protection of 100.000 EUR per customer applies to you as long as there are no other securities accounts with the partner bank. If you have another bank account with that bank, you are protected for 100.000 EUR in total.
We have no information available about the pay-out process. This would be something your can ask the European Central Bank or here: https://www.depositguarantee.ie/.
To @MugsGame point above, in the event of Trade Republic going bust, would you not be 100% protected i.e. what call to TR have on the funds if they are in escrow? Is it not the case that if Citibank go bust, its that the DGS kicks in?Because your money is held in escrow accounts, it's kept separate from Trade Republic's assets.
I've been following this thread for a few days, and decided to reach out to Trade Republic.
Please let me know if I'm missing anything.
*should* being the operative word.I fail to see how the DGS kicks in if Trade Republic goes under. As mentioned by MugsGame, the funds should be secure and seperated from the rest of the company so should be safe (heard this before?) but I think it is misleading for them to suggest that depositors have a call on the Deposit Guarantee Scheme if trade republic themselves go under.
Presumably the only way they could do this would be if they literally open a new bank account for each new investor? That way, if they go bust, then each customer still has their own personal IBAN with a European bank. But I assume they just group everyone's money together in just a couple of large accounts (they say they have an escrow account in Germany and Citi in Ireland).If TR were to provide demonstratable proof my funds are held in escrow, that they are uniquely identifiable and traceable to me, and provide a clear, and verifiable, explanation of how I would gain access to my money should they go bust, I would reconsider my position on them.
Maybe it's getting better. I transferred a few hundred to my TR account yesterday and they just pinged me to say it has arrived, so less than 24 hours to pay into the account. I think paying out of it still may take longer but I only tested that once with a single Euro to make sure the "path" worked, both in and out, before I sent real money over it.According to this Austrian chap you have a "virtual IBAN" per customer. That's the IBAN you use to transfer funds TO Trade Republic. When you request a transfer from TR to your reference/current account, the source IBAN will be the escrow (pooled) account. So the bank knows how much you paid in through this virtual IBAN it seems. You can transfer funds to your TR virtual IBAN from an account that is not your reference account but you must be the account holder (I believe this is purely a money laundering prevention mechanism and they do not use your name to track who the funds belong to, that is all done using the virtual IBAN).
https://www.youtube.com/watch?v=j85BKFKaNA4&ab_channel=Broker-Test.at (sorry the video is entirely in German but there's a lot more information available about TR in German for obvious reasons)
He points out that it can take several days to transfer money in and out and this has been my experience also.
There's no reason it would be any longer. The current overnight interbank rate (€STR) is 2.4%.The finance youtubers here in Germany are all of the opinion that this money is coming straight out of the TR marketing budget.
Interesting. Nevertheless the 2% still hammers the next bank down here in Germany (I think about 1.25% from Ford Bank) when you exclude time-limited offers so I don't expect TR to have to increase that 2% anytime soon but if regular banks do creep up to 2% territory then one would expect that marketing budget to be dipped into again...hopefully! For me it's an opportune time to have somewhere to park several k but it's because we are refinancing our home loan at the moment and once that is through I will be moving a good chunk of it out of TR to pay down the new mortgage which is 3.8% APR. I always keep a bit of rainy day money of course and that can stay with TR. If TR loses the 2% advantage to my own bank I will just repatriate the money to my own bank I suppose. I don't care to open and close deposit accounts every 3 months to avail of the latest offer that gains me 1%. I am far too lazy for that.There's no reason it would be any longer. The current overnight interbank rate (€STR) is 2.4%.
But TR not being a bank, do they profit from the 2.4% on customer deposits?There's no reason it would be any longer. The current overnight interbank rate (€STR) is 2.4%.The finance youtubers here in Germany are all of the opinion that this money is coming straight out of the TR marketing budget. There is no way for them to offer 2% without losing real money. They reserve the right of course to stop paying interest at any time. They spend their marketing budget on it in the hope that you will invest the money rather than leave it there earning a "measly 2%".
They could easily have an agreement with the bank they place funds with that they are receiving 2%, or €STR less a margin, etc etc.But TR not being a bank, do they profit from the 2.4% on customer deposits?