Trade Republic Announces fee-free pension account as providers race on costs

Financial institutions are scrambling to present the cheapest options for the upcoming state-subsidised private pension account, which will replace the Riester scheme. Trade Republic announced that its version will be completely free of fees, covering transaction costs, account maintenance and even the expense ratios of dozens of ETFs from major managers. Competitors like Scalable Capital have set a low annual fee that is planned to be suspended for the first year, while Deka-Bank and others propose similarly modest charges that may be temporarily waived.

The government will subsidise up to 540 euros per year for savers who lock their money in a dedicated account until retirement. Consumer groups stress the importance of checking the effective cost disclosed in product information sheets, as fees can increase after promotional periods. A recent survey indicates that firms view the fee-free offering mainly as a customer-acquisition tool rather than a profit centre.