Trade Republic introduces children's custody account

Trade Republic launches the first free ETF offer for children's custody accounts in Germany. Parents can now save digitally for their children. The fund costs of selected ETFs are covered until the age of 18 and automatically reinvested.

Berlin, May 27, 2025 - Neobroker Trade Republic announced the launch of a children's custody account on May 27, 2025. With the new offer, the platform now enables parents to build up long-term assets for their children. It includes all the familiar functions, digital onboarding and an innovation: the elimination of fund costs for selected ETFs up to the age of 18.

Completely digital custody account for children without a waiting list

Parents can open the children's custody account directly in the Trade Republic app, quickly and completely digitally. There is no waiting list. The custody account is managed in the child's name, while the legal representatives take over the administration. In addition to the usual range of functions such as free savings plans on shares and ETFs as well as fractional trading, young account holders also benefit from the full passing on of the current ECB interest rate (currently 2.25%) on the entire balance.

TR child benefit replaces fund costs

The new Trade Republic child benefit function is particularly noteworthy. The fund costs of selected Vanguard ETFs, such as the globally popular FTSE All World, are reimbursed monthly and automatically reinvested in the ETF. This benefit applies until the child reaches the age of majority and, according to the provider, is unique worldwide. The eligible ETFs include, among others:

• Vanguard FTSE All World
• Vanguard ESG Global All Cap
• Vanguard LifeStrategy 80

The aim: 100% of every euro invested should be used to build up assets without ongoing product costs.

New savings function

Trade Republic also focuses on a collaborative approach to asset accumulation. Family members and friends can be invited to regularly support the child via direct debit using the so-called savings sponsor function. The aim is to anchor financial provision in the social environment from an early age.

Tax advantages and political connectivity

Another argument in favor of the child deposit account is the tax framework: Parents can use the child's annual tax-free allowance of currently around 13,000 euros. This can result in tax savings of several thousand euros in the long term.

Trade Republic also refers to political developments: The coalition agreement provides for a so-called early starter pension, in which children from the age of six are to receive a monthly state subsidy of 10 euros. The Kinderdepot is to serve as a possible recipient platform for this subsidy. It will start as soon as the law is implemented.

According to Trade Republic's calculations, a child for whom 100 euros per month is invested from birth and who achieves an average return of 7% per year until the age of 18 could have assets of over 43,000 euros by the time they reach the age of majority. If this capital remains invested in the market until retirement, it can theoretically amount to over 1 million euros.

Trade Republic Support criticized

Despite Trade Republic's innovative spirit and growth, the neobroker is increasingly being criticized for its customer support. According to media reports, there have been increasing indications in recent months that the availability and response speed of the support team is inadequate. This has apparently also attracted the attention of the German Federal Financial Supervisory Authority (BaFin). On discussion platforms such as Reddit or in review portals, users regularly report long waiting times, automated standard responses and other difficulties. Hardly anyone seems to be able to reach a personal contact person for their concerns. However, a functioning customer service is essential for a financial company with several million customers. Especially when it comes to trust-sensitive issues such as investments or account access. If these problems arise in connection with the new children's custody accounts, this will very quickly lead to significant criticism.

Stimulus for children's wealth accumulation

With the children's custody account, Trade Republic is setting a new standard in the area of private pension provision for children. The combination of digital access, no fees for ETFs and family participation via savings appeals to both cost-conscious parents and wealth-building grandparents or godparents. It remains to be seen whether the model will also become a role model for state-supported pension programs, but the foundations have now been laid.

Attention should also be paid to the simple digital set-up. From experience, I can only say that children's custody accounts at other direct banks in Germany are still subject to major bureaucratic hurdles. Parents very often fail at this unnecessary mammoth task and then decide not to set up a children's custody account.