Trade Republic vs Scalable Capital: Best Broker for Dividend Investors?
Trade Republic and Scalable Capital are the two most widely used neo-brokers among European retail investors. Both offer commission-free trading, clean mobile interfaces, and access to thousands of stocks and ETFs. But for dividend investors specifically, the differences between them matter more than they might appear at first glance.
This comparison covers dividend handling, tax features, available assets, pricing, and everything else a European dividend investor needs to know before choosing between the two platforms.
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Quick Verdict
| Feature | Trade Republic | Scalable Capital |
|---|---|---|
| Best for | Simplicity, beginners | Active investors, broader access |
| Pricing | €1 per trade | Free (PRIME+: €4.99/month) |
| Dividend reinvestment | ✅ Automatic DRIP | ✅ Automatic DRIP (free) |
| Freistellungsauftrag | ✅ Yes (individual only) | ✅ Yes (joint for couples) |
| Savings plans | ✅ Free, 4,000+ ETFs | ✅ Free, 2,500+ ETFs |
| Interest on cash | ✅ 3.75% p.a. | ✅ 2.6% p.a. (PRIME+) |
| Stock universe | 9,000+ | 8,000+ |
| ETF universe | 2,500+ | 2,500+ |
| Crypto | ✅ Yes | ✅ Yes |
| Joint depot | ❌ No | ✅ Yes |
| Web platform | ✅ Yes | ✅ Yes |
Pricing Comparison
Trade Republic Trade Republic charges a flat €1 per trade for market orders. Savings plans are completely free. There are no custody fees, no inactivity fees, and no monthly charges. For buy-and-hold dividend investors who trade infrequently, this is one of the lowest-cost structures available in Europe.
Scalable Capital Scalable Capital operates on a tiered model:
| Plan | Monthly Cost | Trading Cost |
|---|---|---|
| Free | €0 | €0.99 per trade |
| PRIME | €2.99/month | Unlimited free trades |
| PRIME+ | €4.99/month | Unlimited free trades + 2.6% cash interest |
For active investors making more than three or four trades per month, the PRIME subscription pays for itself quickly. For passive dividend investors with savings plans and infrequent rebalancing, the free tier or Trade Republic’s flat €1 fee are equally competitive.
Dividend Handling: The Most Important Difference
This is where the two platforms diverge most significantly for dividend investors.
Trade Republic – Automatic Dividend Reinvestment
Trade Republic offers automatic dividend reinvestment (DRIP) for individual stocks. When a dividend is paid, it can be automatically reinvested into additional fractional shares of the same stock – without any action required from the investor.
For long-term dividend investors in the accumulation phase, this is a genuinely valuable feature. Compounding begins immediately without cash drag or manual intervention. No other major European neo-broker currently offers this at scale.
The limitation: Trade Republic’s DRIP reinvests into the same stock that paid the dividend. You cannot redirect dividends to a different position automatically.
Scalable Capital – Automatic Dividend Reinvestment
Scalable Capital offers automatic dividend reinvestment (DRIP) which can be activated or deactivated in the broker settings. Once enabled, all dividends received are automatically
reinvested into the same paying security – free of charge and without any manual intervention required. This gives Scalable Capital investors the same compounding benefit as Trade Republic, while retaining the option to disable it and redirect dividends manually when needed.
Verdict für dividend investors: Both platforms offer automatic DRIP free of charge. The key difference is that Scalable Capital allows you to toggle reinvestment on or off globally in settings, giving you more control over when to compound and when to accumulate cash.
Tax Features: Freistellungsauftrag and Couples
Both platforms support the Freistellungsauftrag – Germany’s annual €1,000 tax-free allowance on investment income.
Critical difference for married couples:
Trade Republic does not offer joint depot accounts. Each investor holds an individual account, meaning the maximum Freistellungsauftrag per person is €1,000. Married couples cannot set up a joint exemption at Trade Republic and must submit two separate individual orders.
Scalable Capital stores the Freistellungsauftrag at its partner bank (Baader Bank), which allows joint filing for married couples up to the full €2,000 allowance. Loss offsetting between spouses is also possible at Scalable Capital – not at Trade Republic.
For married investors or registered civil partners, this structural difference has direct tax implications every year. For a full breakdown of how the Freistellungsauftrag works and how to set it up correctly, see our complete guide to the Freistellungsauftrag.
Savings Plans: ETF and Stock Investing
Both platforms offer free savings plans – one of the most useful features for dividend investors building positions gradually.
Trade Republic
- 4,000+ ETFs and stocks available for savings plans
- Minimum: €1 per month
- Execution: monthly, on a fixed date
- Free for all accounts
Scalable Capital
- 2,500+ ETFs and stocks available for savings plans
- Minimum: €1 per month
- Execution: monthly or twice-monthly
- Free for all accounts
For dividend ETF savings plans, both platforms cover all major UCITS dividend ETFs including iShares Core MSCI World, Vanguard FTSE All-World, and the major dividend-focused indices.
Interest on Uninvested Cash
Both platforms pay interest on cash balances – relevant for dividend investors who accumulate cash before reinvesting.
Trade Republic: 3.75% p.a. on cash balances (as of early 2026, subject to change with ECB rate decisions)
Scalable Capital PRIME+: 2.6% p.a. on cash balances
Trade Republic currently offers the higher rate, making it more attractive for investors who hold meaningful cash positions between reinvestment cycles.
Asset Coverage for Dividend Investors
Stocks Both platforms cover all major European and US dividend payers. STOXX Europe 600 constituents, DAX, FTSE 100, S&P 500 – all accessible on both platforms. For niche European mid-caps, coverage can vary; check availability before opening an account if you have specific positions in mind.
Dividend ETFs All major UCITS dividend ETFs are available on both platforms including:
- iShares STOXX Global Select Dividend 100
- Vanguard FTSE All-World High Dividend Yield
- SPDR S&P Euro Dividend Aristocrats
- WisdomTree Europe Equity Income
REITs European and US REITs are available on both platforms. For US REITs specifically, fractional shares are available on Trade Republic, making it possible to build positions in high-priced REITs with smaller amounts.
Platform Experience
Trade Republic Trade Republic is primarily a mobile app with a clean, minimal interface. The web platform exists but is less feature-rich than the app. The experience is optimised for simplicity – placing a trade or setting up a savings plan takes less than a minute. Portfolio analytics are basic: you can see your positions, performance, and dividend history, but there is no advanced screening or analysis built in.
Scalable Capital Scalable Capital has a stronger web platform with more analytical features. The interface is more detailed and provides better portfolio breakdowns. For investors who prefer to manage their portfolio from a desktop, Scalable Capital’s web experience is noticeably more capable.
Which Platform Is Right for You?
Choose Trade Republic if:
- You want automatic dividend reinvestment without manual intervention
- You are a single investor (not managing a joint depot)
- You prioritise simplicity and a clean mobile experience
- You want the highest available interest rate on cash
- You invest in crypto alongside dividend stocks
Choose Scalable Capital if:
- You are married and want a joint depot with the full €2,000 Freistellungsauftrag
- You make frequent trades and want unlimited free trades on PRIME
- You prefer a desktop-first experience with more analytical features
- You want to automatically direct dividend income across your portfolio
- Loss offsetting between spouses is relevant to your tax situation
Consider both if:
Some investors use Trade Republic for savings plans and automatic dividend reinvestment on core holdings, and Scalable Capital for a joint depot with their partner. The accounts are free to open and maintain, so running both in parallel is a legitimate strategy.
Practical Example: €500/Month Savings Plan
Scenario: A German investor contributes €500/month to a dividend ETF savings plan and reinvests all dividends.
| Trade Republic | Scalable Capital (Free) | |
|---|---|---|
| Monthly savings plan cost | €0 | €0 |
| Dividend reinvestment | Automatic | Manual |
| Freistellungsauftrag | €1,000 (individual) | €1,000 (individual) |
| Cash interest on buffer | 3.75% | 0% (free tier) |
| Tax reporting | Automatic (Endbesteuerung) | Automatic (Endbesteuerung) |
For this investor, Trade Republic offers marginally better economics due to higher cash interest and automatic reinvestment. The difference becomes more significant over longer time horizons as dividends compound automatically.
Verdict
For most European dividend investors in the accumulation phase, Trade Republic is the stronger choice – automatic dividend reinvestment, higher cash interest, and a lower per-trade cost for infrequent traders.
Scalable Capital is the better choice for married couples who want a joint depot, investors who make frequent trades on PRIME, and those who prefer desktop-based portfolio management.
Neither platform replaces dedicated dividend research tools. For stock analysis and dividend safety screening, Seeking Alpha and Simply Wall St serve complementary roles that neither broker’s built-in tools can replace.
Frequently Asked Questions
Is Trade Republic safe for European investors? Trade Republic is a licensed German bank (since 2023), regulated by BaFin and the Bundesbank. Customer assets are protected up to €100,000 under the German deposit guarantee scheme, and securities holdings are held in segregated accounts.
Is Scalable Capital safe? Scalable Capital is regulated by BaFin and uses Baader Bank as its partner custodian. Securities are held in segregated accounts and are not part of Scalable Capital’s balance sheet.
Can I transfer my portfolio from one broker to the other? Yes. Both brokers support portfolio transfers (Depotübertrag). Transfers are typically free and take 2–4 weeks. In-kind transfers preserve your cost basis for tax purposes.
Does Trade Republic offer fractional shares? Yes. Trade Republic offers fractional shares for stocks and ETFs, which is particularly useful for high-priced dividend stocks and REITs.
Which broker is better for dividend ETF savings plans? Both are equally strong for ETF savings plans. Trade Republic has a slightly larger savings plan universe (4,000+ vs 2,500+), but both cover all major UCITS dividend ETFs.
Transparency: Broker features and pricing in this article reflect publicly available information as of April 2026. Rates and features are subject to change. Always verify current terms directly with the broker before opening an account. Last reviewed: April 2026. This article is for educational purposes only and does not constitute financial advice.
Disclosure: This article does not currently contain affiliate links for Trade Republic or Scalable Capital. We only add affiliate links when we have verified the program terms. This may change in future updates.
