Update
The offers are becoming more and more similar. Vanguard ETFs can now also be traded at TR and SC also offers instant deposits.
Original article:
Again and again the question is asked here whether Trade Republic (TR) or Scalable Capital (SC) would be the better choice or whether you should simply use both. That's why I thought, donkey, I'll do a post about it. Of course, you could also just google it and look at one of the 2,682,628 comparison sites. But these sites are nowhere near as reputable as I am. In addition, they don't know the GetQuin community and therefore don't answer your urgent questions such as "Can I also trade the Vanguard All World ETF via TR?" (Spoiler: No, you can't!) or "Why does it take so long for my money to get to Scalable? Can't it be faster?" (Spoiler: Yes, with TR!). But let's start with the basics and the conclusion, for those who are too lazy to read the whole post.
𝐊𝐚𝐧𝐧𝐬𝐭 𝐝𝐮 𝐝𝐚𝐬 𝐖𝐢𝐜𝐡𝐭𝐢𝐠𝐬𝐭𝐞 𝐤𝐮𝐫𝐳 𝐮𝐧𝐝 𝐤𝐧𝐚𝐩𝐩 𝐳𝐮𝐬𝐚𝐦𝐦𝐞𝐧𝐟𝐚𝐬𝐬𝐞𝐧 (𝐅𝐚𝐳𝐢𝐭 / 𝐭𝐥;𝐝𝐫)?
The two platforms are not much different. Savings plans for shares and ETFs are flexible and free of charge with both providers, but I would not recommend trading cryptocurrencies via either TR or SC. For many, the choice of broker may not matter unless ...
... You want to use Vanguard's ETFs or are interested in the widest possible selection of ETFs
... You are a frequent trader (4 or more trades / month outside of savings plans) and don't want to worry about order fees
Then you are Team Scalable Capital.
... You want the largest possible selection of shares
... You never have enough money in your clearing account, but you buy relatively spontaneously and therefore always want to deposit money at short notice that you want to use almost immediately
Then you are Team Trade Republic.
If at least one point from Team-SC and Team-TR applies to you, simply open accounts with both providers. It's free and the setup/registration is straightforward and quick. You can also use my referral links and secure a gift/credit from the respective provider if you actively use them:
Scalable Capital: https://de.scalable.capital/einladung/bmzbms
Trade Republic: https://ref.trade.re/2c832t5l
If you still have questions, you are welcome to take a look at the other facts, for the rest I wish you good luck with your trading!
𝐖𝐚𝐬 𝐛𝐢𝐞𝐭𝐞𝐧 𝐝𝐢𝐞 𝐛𝐞𝐢𝐝𝐞𝐧 𝐏𝐥𝐚𝐭𝐭𝐟𝐨𝐫𝐦𝐞𝐧?
Both platforms allow you to invest in shares (TR: 7,500, SC: 6,000), ETFs (TR: 1,500, SC: 1,900), crypto (TR: > 50, SC: > 10) and derivatives (TR: 300,000 from HSBC, Citi and Société Générale, SC: 375,000 from Goldman Sachs, HSBC and UniCredit). Shares, ETFs and crypto can be conveniently deposited as a savings plan. The range of derivatives offered by SC and TR consists of warrants, knock-out products and factor certificates on indices, individual shares, currencies and commodities. SC also offers a Robo Advisor.
TR uses Lang & Schwarz as its trading venue, while SC uses Gettex. For an additional fee, SC also offers trading via Xetra.
𝐖𝐞𝐥𝐜𝐡𝐞𝐞 𝐊𝐨𝐬𝐭𝐞𝐧 𝐞𝐧𝐭𝐬𝐭𝐞𝐡𝐞𝐧?
TR does not charge a monthly fee, ETF and share savings plans are free of charge. Trades outside of savings plans cost 1 euro. Both custody account and clearing account management are free of charge. The same applies to ETF and share distributions. Depositing money into the clearing account is free of charge via bank transfer; deposits via credit card or Google / Apple Pay incur a fee of 0.7% (plus credit card costs if applicable).
In addition to the free version, SC also offers the Prime Broker, which saves order fees for a monthly (EUR 4.99 / month) or annual (EUR 2.99 / month) fee. With all variants, ETF and share savings plans are executed free of charge. Purchases outside the savings plans cost a fee of EUR 0.99 in all variants up to an order volume of EUR 250. Prime Broker customers are exempt from order fees from an order volume of 250 euros, provided orders are placed via the Munich stock exchange Gettex. So-called "Prime ETFs" can also be traded free of charge from an order volume of 250 euros without a fee-based subscription. The providers Invesco, iShares and Xtrackers are currently Prime Partners and offer Prime ETFs on SC.
If you wish to use Xetra as a trading venue instead, there is an order fee of EUR 3.99 and a trading venue fee of 0.01% (min. EUR 1.50). SC also offers free custody and clearing accounts. ETF and share distributions are also free of charge. SC only offers payment by bank transfer or direct debit and does not charge a fee for this.
𝐖𝐞𝐥𝐜𝐡𝐞 𝐌ö𝐠𝐥𝐢𝐜𝐡𝐤𝐞𝐢𝐭𝐞𝐧 𝐳𝐮𝐫 𝐄𝐢𝐧𝐫𝐢𝐜𝐡𝐭𝐮𝐧𝐠 𝐞𝐢𝐧𝐞𝐬 𝐒𝐩𝐚𝐫𝐩𝐥𝐚𝐧𝐬 𝐠𝐢𝐛𝐭 𝐞𝐬?
With TR, I can choose the savings plan interval between twice a month, once a month and once a quarter and decide whether the plan should be executed at the beginning or in the middle of the month. The amount is freely selectable, but must be between 10 and 10,000 euros.
With SC, I have the choice between monthly, bi-monthly and quarterly execution. I cannot execute the savings plan twice a month with SC, as is possible with TR. However, I can set the time of the savings plan execution more flexibly. This is possible from the 1st of a month in 3-day increments up to the 25th of a month. The amount is also freely selectable with SC, but must be between 1 and 5,000 euros.
There are differences in the direct debit procedure. TR expects you to have sufficient funds in your TR clearing account before the savings plan is executed. If this is not the case, the savings plan will not be executed. A standing order to the settlement account is recommended here.
With SC, you can choose between a direct debit and a direct debit from the settlement account. If the amount is to be collected from the clearing account (credit balance) but the clearing account does not have sufficient funds, SC automatically initiates a collection via SEPA direct debit. The SC savings plan will therefore be executed in any case.
𝐖𝐢𝐞 𝐬𝐢𝐞𝐡𝐭 𝐞𝐬 𝐦𝐢𝐭 𝐝𝐞𝐫 𝐀𝐤𝐭𝐢𝐞𝐧- 𝐮𝐧𝐝 𝐄𝐓𝐅-𝐀𝐮𝐬𝐰𝐚𝐡𝐥 𝐚𝐮𝐬?
Around 7,500 shares can be traded at TR - around 1,500 more than is possible at SC. On the other hand, the ETF selection at SC is impressive, with around 1,900 ETFs that can be saved in, 400 more than at TR. The lack of Vanguard ETFs on TR, which are so popular with GetQuin, is likely to annoy some users. TR also lacks some lesser-known ETF providers such as Franklin and Rize.
𝐖𝐞𝐥𝐜𝐡𝐞𝐞 𝐎𝐫𝐝𝐞𝐫𝐭𝐲𝐩𝐞𝐧 𝐰𝐞𝐫𝐝𝐞𝐧 𝐮𝐧𝐭𝐞𝐫𝐬𝐭ü𝐭𝐳𝐭?
TR and SC support market orders, limit orders and stop orders. SC also supports stop-limit orders.
𝐖𝐚𝐬 𝐦𝐮𝐬𝐬 𝐢𝐜𝐡 𝐛𝐞𝐢𝐦 𝐊𝐚𝐮𝐟 𝐯𝐨𝐧 𝐊𝐫𝐲𝐩𝐭𝐨𝐰ä𝐡𝐫𝐮𝐧𝐠𝐞𝐧 𝐛𝐞𝐚𝐜𝐡𝐭𝐞𝐧?
A few things. In principle, I would not recommend trading cryptos via TR or SC. For the selection of a suitable crypto exchange, I recommend the article by @Europoor
https://app.getquin.com/activity/PfAxjKLYpc .
SC offers crytpo ETPs for some major currencies such as Bitcoin and Ethereum. When buying via SC, you do not own coins but an ETP, which is associated with additional management fees. There is also no option to transfer the coins to your own wallet or to generate income via staking or similar.
The crypto selection at TR is significantly larger, and the investment is made directly in one of over 50 cryptocurrencies. However, there is also no option here to withdraw or generate income via staking or similar. Investors must take care of the correct taxation themselves.
𝐖𝐢𝐞 𝐤𝐨𝐦𝐦𝐭 𝐦𝐞𝐢𝐧 𝐆𝐞𝐥𝐝 𝐚𝐮𝐟 𝐝𝐢𝐞 𝐏𝐥𝐚𝐭𝐭𝐟𝐨𝐫𝐦𝐞𝐧?
TR is the platform of choice when speed is of the essence. With the option of depositing via Apple / Google Pay or credit card, the desired credit is available immediately for a fee of currently 0.7%. There is also the option of SEPA bank transfer.
SC only offers direct debit (credited after 3-4 bank working days) and bank transfer (credited after 1-2 bank working days) as deposit options. However, these are free of charge.
𝐖𝐞𝐥𝐜𝐡𝐞 𝐇𝐚𝐧𝐝𝐞𝐥𝐬𝐳𝐞𝐢𝐭𝐞𝐧 𝐛𝐢𝐞𝐭𝐞𝐧 𝐓𝐑 𝐮𝐧𝐝 𝐒𝐂?
TR offers trading in equities and ETFs during the week between 7:30 am and 11 pm, and trading in derivatives between 8 am and 10 pm. At SC, trading is possible during the week between 8 a.m. and 10 p.m. via Gettex. The alternative trading venue Xetra is available between 9 am and 5:30 pm.
𝐔𝐧𝐝 𝐰𝐞𝐧𝐧 𝐦𝐚𝐧 𝐦𝐚𝐥 𝐏𝐫𝐨𝐛𝐥𝐞𝐦𝐞 𝐡𝐚𝐭?
Both TR and SC support can be reached quickly and easily via the respective app. TR offers an e-mail contact form, SC a chat. If you can't find the security you want in SC, you can request it directly in the app using an extra function - without having to contact support. Response times are fast with both providers. The employees understand your problem, offer solutions or explain why the problem cannot be solved (and why it is your fault). I haven't found any goodwill so far, but you shouldn't expect that given the prices. These comments are based on my personal experience.
𝐖𝐚𝐬 𝐠𝐢𝐛𝐭 𝐞𝐬 𝐬𝐨𝐧𝐬𝐭 𝐧𝐨𝐜𝐡 ü𝐛𝐞𝐫 𝐝𝐢𝐞 𝐛𝐞𝐢𝐝𝐞𝐧 𝐳𝐮 𝐞𝐫𝐰ä𝐡𝐧𝐞𝐧?
SC and TR are available both as an app and via a web interface. However, TR offers you much more comprehensive information about your investments than SC - which is not difficult, as SC only shows the ISIN and WKN in addition to the chart and name. However, I would recommend that you inform yourself thoroughly about your investments beforehand and not just use the information in TR. However, this can certainly give you an initial overview.
If you use SC without a subscription, you can set up a price alert. With a subscription, SC offers you any number of price alerts. You get this function for free with TR.
Both providers are subject to the European deposit guarantee of 100,000 euros. However, this should only be of marginal interest to you, as securities are not subject to deposit protection anyway as they are your property. Your securities are not at risk in the event of the provider's insolvency. Incidentally, SC works together with Baader Bank, HSBC Germany manages your securities account at Trade Republic and Solarisbank manages your clearing account.
Both providers have also had their own little scandals. While TR suspended the trading of meme stocks such as GameStop at the beginning of 2021, SC had customer data stolen at the end of 2020.
𝐒𝐜𝐡𝐥𝐮𝐬𝐬𝐰𝐨𝐫𝐭
I will update this post at irregular intervals. But feel free to let me know in the comments if anything has changed at TR or SC.
#traderepublic
#scalablecapital
#reflink
#learn
#esel
