You can invest in a variety of corporate and government bonds with your Trade Republic app. Learn more about the key metrics you can find in the app.
Orders are executed via the LS Exchange. Newly added bonds follow these criteria:
- Denominated in EUR
- Sufficient liquidity
- Non-structured (i.e. plain-vanilla bonds, no convertibles, floaters, variable interest, inflation-linked instruments)
Is fractional trading possible?
When creating a market order (Browse > Bonds > Order type), you’re able to invest via 2 options that offer fractional trading:
- Amount: Invest any amount, starting from 1 EUR. Therefore, you don’t need to buy a bond for the whole smallest tradable unit.
- Face value: Invest based on any face value, starting from 1 EUR. The face value is the value you’ll receive back at the end of maturity. Depending on the quotation, the face value will differ from the total order value.
In either case, the total order value already includes accrued interest, which we calculate for you.
How to create Limit order in Bonds :
Please notice that you need to have the cash available to create a limit order and fractional trading is not available on limit orders, this is the same as for any other asset class.
- Open a bond instrument
- Select buy/sell
- On the invest screen change the order type to “Limit”
- Set the target quotation
a. When buying, if the quotation is higher than the current quotation, the app will show a message that it can be executed immediately
b. When selling, if the quotation is lower than the current quotation, the app will show a message that it can be executed immediately - Set the face value you would like to invest or sell.
a. The app will validate if the minimum order and trading increment are met.
b. The app will validate if you have enough cash to make the order - Select the duration of the limit order
a. If the maturity date of the bond is more than a year, it will show a 1 year.
b. If the maturity date is less than a year then we show the user that the limit order will be valid until the maturity date. - Summary screen
a. The system calculates what’s the maximum accrued interest that the user would have to pay to the previous owner of the bond in case the order is executed. Depending on the date the order is executed this value can be less and the remaining balance will be released from the cash block.
Can I create a savings plan for bonds?
At the moment, we don’t offer the possibility to set up savings plans for bonds.
How long before maturity can I trade bonds?
You can usually trade bonds until 3 trading days prior to maturity. After this date a bond is expected to not be tradable anymore. This happens in line with other German exchanges in order to avoid issues with the settlement of trades.
This handling might be subject to change at the exchange and can deviate in single cases. You can look up the current status of your bond on the LS Exchange website. In case you can’t find the bond on the website, it has been delisted already and the instrument is not tradable anymore.
If selling your bond is not possible anymore, you’ll receive the face value back and the last coupon payment of the bond after maturity.
Which corporate actions are available for bonds?
In case there is an optional corporate action for the bond you are holding, you might be eligible to participate in this corporate action. You will be informed about the corporate action in your app (Profile > Activity) and/or via email. Please keep in mind that:
- You can only instruct for a full smallest tradable unit.
- For holdings below the smallest tradable unit, no instruction can be made.
- Trade Republic will not make any instructions for you.
- If you need more information, please visit the website of the issuer.