N26 begins buying and selling shares and ETFs in Germany | EUROtoday

DThe smartphone financial institution N26 is increasing its product vary: The Berlin start-up firm will in future provide clients in Germany buying and selling in shares and ETFs, because the fintech introduced in Berlin on Wednesday. This signifies that the neo-bank will not be solely competing in opposition to established monetary establishments, however can also be intensifying competitors with the Berlin start-up Trade Republic. The N26 competitor Trade Republic began buying and selling shares and ETFs as a neo-broker in 2015 and not too long ago expanded its product portfolio with a bank card and a fixed-term deposit provide.

N26 co-founder Valentin Stalf stated: “We are now starting in Germany with over 200 stocks and 100 ETFs.” The provide will then be expanded to greater than 1,000 shares and over 1,000 ETFs throughout the subsequent few months. We are in a market through which one in six customers already invests in shares.

“Both with 500,000 and with one euro”

Stock and ETF buying and selling is technically applied by means of a partnership with the corporate Upvest. The Berlin-based fintech provides banks the brokerage and custody of funding merchandise by way of a program interface (API). First, N26 in Austria had enabled clients to commerce ETFs since January. Stalf stated they took their time with the introduction to the German market. “Our aim was to ensure that this product could be used with both 500,000 euros and one euro.”

With a flat price of 90 cents per commerce, N26 undercuts its competitor Trade Republic by a couple of cents. “There are no further costs such as additional commissions or custody fees,” stated N26. It is predicted that many purchasers will select a variant of the paid N26 premium accounts. “Instead of charging separate fees everywhere, we pursue the strategy of covering all financial costs with a fee of between 4.90 and 16.90 euros per month.”

Draws degree with competitor Trade Republic

Depending on the account mannequin, N26 provides as much as 4 p.c curiosity on fixed-term deposits, placing it on a par with the provide of its competitor Trade Republic. The improve in rates of interest for present account accounts will come into impact from April ninth.

Since January 2023, N26 has additionally enabled clients in Germany to commerce Bitcoin and different cryptocurrencies. Stalf stated the usage of the crypto providing relies upon closely on the value of Bitcoin. “If the price rises or even reaches an all-time high, then there will be more trading.”

The N26 CEO was happy with the present enterprise improvement: “We are well on the way to getting into the black with our business figures. As announced, we will achieve profitability on a monthly basis in the second half of the year.” N26 is lively in 24 international locations in Europe and employs round 1,500 individuals, together with round 1,000 in Berlin.