now allows you to buy US Treasury bonds and bills and corporate bonds from one euro

The digital bank Trade Republic announced this Wednesday, on the occasion of the celebration of its fourth anniversary in Spain, the launch on its investment platform of Spanish sovereign and US corporate bonds that can be accessed from one euro.

The German broker has stated in a statement that, with the launch of new fixed income products, takes another step in its evolution to become a comprehensive wealth manager.

Specifically, with this launch Trade Republic clients can invest from one euro in a diversified set of exchange-traded funds (ETFs) of bonds linked to issuers such as governments and companies with the objective of generating interest income for several years to come.

“Customers can invest in issuers like Apple or Netflix and potentially benefit from the higher rate environment in the United States,” the company has exemplified; however, it has stressed that currency risk must always be taken into account.

Additionally, The investment platform will give access to Treasury Bills and Spanish State Bonds from one eurowhich differs from the minimums through the Public Treasury primary market of 1,000 euros.

For their part, investors have the flexibility of being able to sell the shares of these products at any time at the market price, while interest is paid quarterly.

“The new bond and fixed interest products, with clearly defined maturities, provide certainty in planning without giving up flexibility […] This makes them an ideal option to save for specific objectives, such as a trip, a car or the purchase of a home,” the company stated.

Along these lines, they have claimed that, depending on the maturity, the returns of these strategies are, on average, between one and three percentage points. above the average rate for paid accounts.

“Fixed income is once again a real alternative”

On a broader level, the co-founder of Trade Republic, Christian Heckerhas argued that, for build long-term wealth, combining different asset classes is “essential.” “This is how professionals invest, and now we are making it possible step by step for everyone,” he stated.

He Country Manager of Trade Republic in Spain and Portugal, Pablo López, has noted that today “fixed income is once again a real alternative for those looking to grow their savings without taking big risks.

On a commercial basis, the entity has added that they will provide an extra 1% interest until the end of the year in investments made in this typology before November 13.

Extensive expansion strategy

This movement has been part of a broad expansion strategy by the company, since rrecently incorporated access to risk capital from one euro -specifically, in Apollo and EQT vehicles- and launched a children’s account.

On a broader level, Trade Republic has celebrated its fourth anniversary in Spain and has indicated that, since January 2023, it has paid on a global scale 2,500 million euros in the remunerated accounts of its clients.

These interest-bearing accounts, whose interest goes hand in hand with the interest rates of the European Central Bank (ECB), have been the great driving force of the entity together with its investment brokerwhile the firm currently operates in 18 European countries and has more than 150,000 million euros in assets under management.