Trade Republic launches zero-fee retirement account for 2027
Trade Republic will offer a completely free retirement account starting January 1, 2027, covering 51 ETFs from major providers. The zero-fee structure is projected to save investors up to 180,000 euros over 40 years.
Trade Republic announced that its retirement account (AVDA), launching January 1, 2027, will be completely free of custody fees, savings plan costs, and product fees (TER) for 51 ETFs from BlackRock, DWS, and Vanguard. The account replaces the Riester pension and allows investments in broad ETFs, funds, and Euro government bonds, excluding single stocks and crypto. The state provides a subsidy of 540 euros annually for those saving 150 euros monthly. Trade Republic calculates that zero fees are worth approximately 40,000 euros over 40 years compared to a 0.2% fee structure, and 180,000 euros compared to a 1% fee. Orders are executed via the Xetra closing auction to avoid spreads.
CEO Christian Hecker stated there are no plans to introduce fees later, though no fixed duration for the free list is named. Trade Republic positions the zero-fee structure as a significant long-term value proposition for retail investors, leveraging behavioral economics to drive adoption. The move aims to capture market share in the retirement savings sector by eliminating the cost barriers that typically deter long-term investment.