Trade Republic PFOF ban changes took effect on Wednesday as the broker rolled out a new execution engine, a paid order type, and a web terminal for active investors.
The move came two days after the European Union’s ban on payment for order flow fully applied to German brokers. Germany had used a temporary exemption, but that carve-out ended on June 30. As a result, brokers in Germany can no longer earn rebates for routing client orders to market makers.
Trade Republic said its new system checks real-time quotes across what it called all relevant liquid exchanges. It then fills orders at the best available price and charges clients a €1 settlement fee. Meanwhile, clients who want to choose a venue such as Xetra, Euronext, NYSE, or Nasdaq can use a Direct Price order for €2 per trade.
Trade Republic PFOF Ban Reshapes Execution
Trade Republic said orders under the new engine are executed against the firm itself. In other words, the broker stands on the other side of the trade instead of sending the order straight to an exchange.
The company has said payment for order flow made up less than 30% of its revenue. However, that model had supported European neobrokers for years. The end of the German exemption now forces brokers to cover execution through other means, such as fees, spreads, subscriptions, or in-house handling.
Co-founder Christian Hecker linked the overhaul to the firm’s broader strategy. He said the changes reflect “what democratising investing means to us.”
Web Terminal Targets Active Investors
Trade Republic also launched a browser-based Web Terminal. The firm said the platform includes charting, screeners, portfolio analytics, and live market data at no extra cost.
Notably, this is the company’s first product aimed beyond the mass-market savers who built its business. The launch marks a clearer shift toward active investors and frequent traders.
Trade Republic said it has more than 10 million customers and over €150 billion in assets. The company reached a €12.5 billion valuation in December. It has also expanded beyond stock and ETF savings plans into bonds, crypto, current accounts, and private-market funds through tie-ups with Apollo and EQT.
The firm named Brad Pitt its global brand ambassador in May for what it called the largest marketing campaign in its history.
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