fred123456
Registered User
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Hi Murtagh,
So if TR goes under, your money is safe as in my case it says it is held with Citibank. Is that correct.
Thanks.
Trade Republic paying 4% on deposits up to €50,000
- Thread starter Brendan Burgess
- Start date
So if TR goes under, your money is safe as in my case it says it is held with Citibank. Is that correct.
Thanks.
Craig_David
Registered User
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yes the client funds are pooled in an omnibus account with the partner bank.. And each client is given their own IBAN so the makeup of the funds is accounted for.. But in the event of Trade Republic going out of business, is it not plausible that other creditors (for example, institutions providing debt equity to Trade Republic) make a claim on any assets held by Trade Republic and rank ahead of the depositors when it comes to pay out? Or are we certain that we would be paid out?
I can only repeat what Stiftung Warentest says: Deposits with TR in the German partner banks are secure as far as they are concerned. For comparison, are we absolutely certain that if AIB for example went under that the DGS would kick in and protect deposits there? Nothing is certain in life but these assurances are good enough for me and my money.
I would say however, that if you or anyone else is uncomfortable depositing money with TR that you should not do it as peace of mind is worth something too. There's no point getting that extra 1% if you are worrying about your deposits the whole time.
Citi bank is also reputable partner, they are handling not only TR but many businesses, so I'm not concerned they are protected.
The thing is bothering me, how I would be able to prove to Citi that I held something through TradeRepublic. But it is clearly that Citi won't be doing any business with TR if they were sketchy
FWIW, I still think TR is more protected and better regulated than Lightyear, but everyone sees it differently. NOT an advice
I also believe Citibank is a reputable and secure partner bank of TR but Stiftung Warentest won't go that far and says it cannot recommend the Citibank offering as it is backed by the Irish DGS and the Irish state itself does not manage a AAA rating these days. That shouldn't scare any Irish depositers though who otherwise would have left the funds in an Irish bank anyway!
Ah here, if CitiBank ever has to call on a DGS, it's game over.
yeah, all bust then
btw, I have old pdf which used to be provided by TR about DGS with Citi, it clearly says 100k not 20k
Yes.
If Citi collapses, you're protected up to 100k.
If TR collapses, you're relying on the clients funds actually being in an escrow account, and German liquidation law keeping these out of creditors reach. If there has been fraud / malpractice and the funds aren't there, you're only protected by the investor compensation scheme up to 20k (90% limit of that in Germany).
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this sounds like the most understandable explanation I have read. Kudos!
1) depends on your current account provider and what they charge fees for. If they don't charge for SEPA transfers elsewhere they shouldn't charge for TR.
2) again, depends on your CC provider. I imagine most will likely treat it as a cash withdrawal which will attract a cash advance fee. As a side note it's generally not a good idea to borrow money to place on deposit.
On the investor compensation scheme relating to Trade Republic:
From Irish Central Bank: The maximum amount of compensation you can claim under the ICS is 90% of your net loss, up to a maximum of €20,000.
From Bafin (German Federal Financial Supervisory Authority): In the event of a loss, customers may recover 90% of their "receivables arising from securities transactions", not to exceed €20,000.
So it seems that only 90% of your uninvested balance and/or stock is protected. This is something I never see mentioned.
On the other hand, as per the Estonian Investment Protection Scheme (used by Lightyear) - Investments are compensated in full, but compensation shall not be larger than 20,000 euros.
From Irish Central Bank: The maximum amount of compensation you can claim under the ICS is 90% of your net loss, up to a maximum of €20,000.
From Bafin (German Federal Financial Supervisory Authority): In the event of a loss, customers may recover 90% of their "receivables arising from securities transactions", not to exceed €20,000.
So it seems that only 90% of your uninvested balance and/or stock is protected. This is something I never see mentioned.
On the other hand, as per the Estonian Investment Protection Scheme (used by Lightyear) - Investments are compensated in full, but compensation shall not be larger than 20,000 euros.
that’s typical investor protection, it is/was also mentioned on their terms.
read just few posts above, to understand that uninvested cash is protected by different scheme and in order to kick in investor scheme - TR needs to do sketchy business and use all escrow funds
My bold. Your stock is not actually held with TR either by the way. They use HSBC Germany as the actual brokerage (depot in German). HSBC holds your stock but it is your property, so even if TR or HSBC go bust you still own it and can transfer it to another broker. Quite how that would work in practice I don't know, but that could happen to any broker I suppose.
..hmm.. a bit confused.
But I'm asking, if there are any fees from TR side, for top-up the money? (not the bank you are transferring from)
As I heard, TR is charging 1% fee (of transferring amount). But I'm not sure if that stands also for SEPA transfer from reference account?
(I hope I made it clear enough?)
Free for Bank transfers (SEPA payments), but there is a 0.7% charge on card transfers after your first lodgement.
Thank you.
But how can I be sure that its free for SEPA? Is that written anywhere? I was looking, but couldn't find.
Thnx.
Ask TR to tell you in writing.
.. I did... but still no response
Perhaps the 'deposit best buy' can be updated with more details around the actual protection?