Trade Republic Undercuts Germany’s 1% Pension Cost Cap with Fee-Free Account

Trade Republic will roll out a fee-free retirement investment account in Germany in January 2027, the Berlin-based neobroker said, positioning the product around the country's recently enacted pension reform. The company plans to charge no custody fees and no fees on regular savings-plan execution, undercutting the 1% cost ceiling that applies to the standard version of the new subsidised retirement account.

Beyond its own pricing, Trade Republic intends to strip fund costs from several dozen selected ETFs supplied by BlackRock, DWS and Vanguard, with the waiver framed as applying "over the long term." Eligible customers could receive government support of as much as €540 per year, plus up to €300 annually for each child. Those who open an account before turning 25 may also qualify for a one-time €200 starter bonus. The final amount depends on the customer's contributions and personal circumstances.

What the Reform Changes

The reform, enacted in May, introduces a new type of subsidised retirement account aimed at lowering costs and widening investment choice. Under the new framework, savers can put subsidised contributions into equity funds and ETFs without the capital guarantee that was required under the previous system. That opens the door to higher potential market returns, but also means the value of retirement savings can decline. Investment gains accumulate without current taxation during the saving period, while qualifying contributions may attract government allowances and tax deductions.

Trade Republic is not alone in moving into the space. In Germany, Scalable Capital has announced both a standard pension account and a self-directed version, with free administration and savings plans and fund costs for selected ETFs from BlackRock, DWS, Vanguard and Scalable reimbursed and reinvested. In the UK, Trading 212 recently secured FCA approval to offer self-invested personal pensions. The British and German products sit under different tax and regulatory regimes, but both add tax-advantaged retirement savings to platforms built primarily around retail investing.

For Trade Republic, the account extends a push beyond transactional brokerage into longer-term savings and banking services, including current accounts launched in markets such as Greece. It also offers a route to attract customer assets that could stay on the platform for decades. The full scope of the fee-free offer should become clearer before launch, when the company publishes its eligible ETF list, the duration of the fund-cost waiver and the detailed terms. The new products are due to become available from 1 January 2027.