The neobroker Trade Republic says it offers its Altersvorsorgedepot completely free of charge. On Tuesday the company presented its terms for the state-subsidised product, which is to replace the Riester-Rente from 1 January 2027, as the Süddeutsche Zeitung and WirtschaftsWoche report. According to this, Trade Republic waives custody and execution costs, and for several dozen selected ETFs no ongoing management fees are to apply either.
“We are making the completely free Altersvorsorgedepot possible,” co-founder Christian Hecker told WirtschaftsWoche. He told the Süddeutsche Zeitung: “Our Altersvorsorgedepot is possible completely free of charge.” According to the SZ there is no time limit. The fund costs for more than 50 ETFs would be waived and reinvested monthly, Hecker told WirtschaftsWoche: “So that every euro really reaches the customer.”
The state subsidises private saving in the new Altersvorsorgedepot with up to 540 euros per year. The money must be invested in a separate account and is only paid out at the start of retirement. Providers must offer two standard accounts – one low-risk, one with a higher equity share – for which the legislator has capped fees at a maximum of one per cent. In addition, freely designed products without a cap are possible.
A price war foretold
According to the SZ, it had already become apparent in recent weeks that there would be tough competition for the lowest fees before the start on 1 January 2027. Scalable Capital was the first to enter: 0.15 per cent fees per year, which are initially to be waived during 2027. At Deka-Bank, the fund provider of the Sparkassen, the cheapest product is to incur 0.1 per cent costs per year, similar to offers from Deutsche Bank and DWS. Many providers waived fees for a certain period, and further products are likely to be added before the start.
According to WirtschaftsWoche, Trade Republic sets itself apart from many competitors in that no ongoing management fee applies to the selected ETFs. Depending on the index fund, this is otherwise usually up to 0.2 per cent. For ETFs other than the selected ones the fee is due, as it is for active funds, which the fintech is bringing onto its platform for the first time. Scalable Capital reimburses fund costs quarterly, Trade Republic monthly – but the additional compound interest effect remains small even over decades, according to WirtschaftsWoche.
What savers should look out for
Consumer advocates advise against comparing only the advertising figures. “What matters is not the number in the advert but the statement of effective costs in the product information sheet. It shows how much the costs reduce the return over the year as a whole,” Niels Nauhauser of the Verbraucherzentrale Baden-Württemberg told the Süddeutsche Zeitung. With time-limited offers it is already clear that the fees will rise later: “So you should always compare the price after the promotional phase.” A provider may only increase costs if the contract effectively provides for this; it must announce the increase four months in advance at the end of the quarter. If costs rise, consumers may switch free of charge. Without the savers’ consent, however, the product costs of the funds, which mostly come from third-party providers, could be increased. “Whether that also triggers a free right to switch is unresolved,” said Nauhauser.
Why the business can nevertheless pay off for providers is shown by a survey published on Monday by Deutsche Wertpapierservice Bank and the fintech Lemon Markets, about which the SZ reports. Decision-makers at 88 financial institutions and service providers were surveyed. 28 per cent considered the standard account difficult or barely economically viable, yet 77 per cent intended to offer it. 84 per cent see customer loyalty as the most important strategic added value. Hecker told the SZ: “We receive no rebate or commissions for the products in our free Altersvorsorgedepot.” The main aim is to win new customers who then use further services.
According to WirtschaftsWoche, there are doubts in financial circles whether all providers can maintain the extremely low prices in the long term. Hecker disagrees: “The free Altersvorsorgedepot is a long-term promise. Just like interest rates. With the Altersvorsorgedepot we earn no money. But we don’t lose any either. At Trade Republic these terms are not just marketing.”
At the same time, awareness of the product is still low. “So far there are still too great gaps in knowledge about the Altersvorsorgedepot among the population,” Hecker told WirtschaftsWoche. A survey by the polling institute YouGov two weeks ago found that many people know little about the Altersvorsorgedepot and will probably not open one. “We have to work on that,” said Hecker. According to WirtschaftsWoche, Trade Republic is planning “the biggest advertising campaign in our history” with television, radio and posters. The company says it has five million customers in Germany and ten million in total; insiders speak of higher figures.
Editor’s note: Whether the zero-tariff model pays off for all providers is open. For savers, what remains decisive is the comparison of effective costs in the product information sheet, not the advertising figure.
