Consumer complaints against the German neobroker Trade Republic have surged, raising questions about its rapid growth and customer service infrastructure. According to the Verbraucherzentrale Bundesverbands (VZBV), the number of complaints has escalated by a staggering 133 percent between January and September compared to the previous year. Across Germany’s 16 consumer centers, over 300 complaints related to Trade Republic have been registered.
The core grievances voiced by consumers center around a persistently difficult-to-reach and often inadequate customer service, alongside issues relating to incomplete deliveries and unsatisfactory service provision. This trend aligns with a broader pattern observed by the financial regulator, BaFin, which has noted an uptick in complaints concerning neobrokers in general. BaFin declined to comment specifically on Trade Republic’s situation when approached by the Handelsblatt.
While Trade Republic acknowledges the concerns, attributing the rise in complaints primarily to its exponential growth – the company’s customer base nearly doubled over the past 18 months – critics are questioning this explanation. The company’s response, stating that “every customer we fail to satisfy is one too many” rings hollow given the magnitude of the complaint escalation.
Analysts suggest that the company’s aggressive marketing and rapid expansion may have outpaced its ability to maintain adequate customer support. The situation poses a critical challenge for Trade Republic and the broader neobroker landscape, potentially inviting increased regulatory scrutiny and demanding a fundamental reassessment of operational priorities to ensure sustainable growth and consumer protection. The significant increase in complaints calls into question whether the current business model can be scaled responsibly while adequately servicing its expanding user base.
