Trade Republic, the Berlin-based stock broker app, has made waves in the fintech industry with its impressive revenue growth. In the 2020/2021 fiscal year, the company’s revenue skyrocketed to almost €100M, a three-fold increase from the previous year. The startup attributes its growth to international expansion and the launch of new products, including its foray into the cryptocurrency business.

However, the aggressive growth had a steep price, with the company reporting a loss of €35M in the same period. This was primarily due to increased personnel expenses, as the company nearly quadrupled its team size during this period. Nevertheless, Trade Republic is confident that its growth strategy is sound and that it is positioning itself for long-term success.

One way Trade Republic is distinguishing itself in the competitive broker app space is through its unique revenue model. The company charges a flat fee of one euro per order, and it finances itself through commissions from third-party partners. Trading is handled by Lang & Schwarz, a financial services provider based in Düsseldorf, which pays Trade Republic a commission for handling transactions.

Another way the company is seeking to attract users is by offering a high deposit interest rate of 2%, which has attracted a rush of interest from customers. Meanwhile, rival fintech N26 has enabled cryptocurrency trading, indicating that the competition between broker apps is heating up.

Trade Republic’s impressive growth and unique revenue model demonstrate the potential of fintech startups to disrupt traditional financial services. As the company continues to expand and innovate, it will be interesting to see how it navigates the challenges of scaling its operations and balancing growth with profitability.