In this new review we’ll show you:
- How to ensure your trading funds are safe
- Fees and Features compared with other brokers
- Leverage and regulation offered
- Customer reviews from trusted sources such as Trustpilot, Google Play and Apple Store
Plus lots more
Let’s get started with the Trading 212 Review 2023
Before starting, we would just like to let you know that this broker is eligible for our free insurance that will help protect your deposit in case of broker failure.
Make sure you select FCA regulation upon signup through our link below to receive up to £85,000 deposit protection provided by FSCS.
In this article
Overview
Trading 212 is a London based brokerage company founded in 2004 allowing traders to trade equities, Stocks, Commodities, Futures, Indices, ETFs, Currencies. You can also invest in ISAs. They offer traders free and zero commission trading.
Since 2016 Trading 212 has been the UK’s #1 trading app, and in 2017 they reached the #1 spot in Germany.
Investors can access various stock markets such as The UK’s FTSE, Germany’s Dax, France’s CAC, Switzerland’s Swiss Market Index and Spain’s Bolsa de Madrid.
Trading 212 has an incredibly popular mobile app which has over 10 million downloads, making it one of the most popular trading and investing apps in the world.
One of the main benefits of trading here is that you have access to over 4000 stocks EFTs commission free. Trading 212 is very competitive in the trading arena due with this zero commission structure.
The Trading 212 mobile app is also very popular with novices and beginner traders mainly due to its simplicity and user friendly interface which is more visually appealing to many than the Metatrader platform.
User reviews
Before depositing your hard-earned cash, it’s always a good idea to have a look around and see user reviews from other traders. We always suggest that you don’t just rely on a single rating on any review site as they don’t give a proper representation of the company on the whole.
So to summarise:
Trading 212 averages 3.8/5 with over 10,800 Trading 212 Trustpilot reviews
Trading 212 averages 4.5/5, with over 145,000 Trading 212 Apple App Store reviews
Trading 212 also averages 3.3 from over 300 Trading 212 Google Reviews
The FPA scores Trading 212 as 2.5/5 from over 63 Trading 212 FPA reviews
The Trading 212 Play Store reviews are 2.5/5 from over 101,000 reviews
They also have over 109,000 Trading 212 Facebook Likes
On the whole, Trading 212 appears to be fairly well respected by the trading 212 community with enough Trustpilot and Trading 212 app reviews to be statistically relevant.
The Trading 212 trading app reviews are positive with The Apple Store Apps scoring extremely well compared to other brokers. However, the Android app isn’t as well received by traders.
Trading 212 also has a bustling Facebook community with plenty of followers which also usually suggests happy customers.
Funds Safety & Regulation
Funds safety is critical in your trading and it can make or break your financial future. Your level of funds protection will depend on where your regulation is from. Your country of residence does not necessarily define who your regulator will be.
There are many factors that go into determining your regulation. So check with your account manager after you have signed up and before you deposit to determine which body you are regulated with.
You can usually switch regulation on signup [depending on your country of origin] which can be a good idea if you want to ensure that you get the best regulator that offers the most consumer protection and funds safety.
Trading 212 is regulated in various jurisdictions. They are regulated in Bulgaria as TRADING 212 Ltd (previous name Avus Capital Ltd) by The Financial Supervision Commission (Register number RG-03-0237). They are also regulated by the FCA in the UK as Trading 212 UK Ltd (Register number 609146).
Your level of funds protection and the procedure for retrieving funds will depend on where your regulation is from.
If you are regulated in Bulgaria by the Financial Supervision Commission, you will have access to funds protection. All European Union brokers must comply with MiFID / ESMA regulations. The compensation covers the lesser of ninety percent (90%) of all claims by the investor or up to €20,000.
If you choose to be regulated in the UK with Trading 212 you will fall under the purview of The Financial Services Compensation Scheme (FSCS).
The FSCS is compulsory for all brokers (including Trading 212) who want to be FCA regulated in the UK. A huge benefit is that the FSCS has funds protection for investors in brokers who are regulated by the FCA. The FSCS is free to consumers and has paid out more than £26 billion for 4.5 million customers since its inception in 2001.
This compensation scheme will pay investors 100% of deposits up to £85,000 if a broker is unable or is unlikely to be able to pay back their customers. A famous example of this is when Worldspreads went into liquidation. If you applied to The FSCS you could get your funds back in a matter of weeks.
Of course, we would not expect broker failure with a company of Trading 212’s stature. But the FSCS basically offers free insurance for the consumer which is invaluable in this day and age with the prevalence of scam and clone firms.
It is always recommended that if you have a choice you should ensure you are regulated by the FCA [UK]. The FCA offers Government backed client funds protection [100% of remaining deposit] up to GBP £85,000 through the [FSCS].
FCA regulations are more strict, the regulations more transparent and they are more focused towards customers in the event of disputes. Brokers regulated by The FCA for example need to process withdrawals within one business day as per Section 7.13.13 (2)(b) of the FCA handbook
Fees
With regards to spread fees, this will depend on a variety of factors. This will include your account type, the asset that is being traded as well as the times that they are traded as they fluctuate depending on if trading is taking place within or outside standard trading hours. Once again, these trading hours will depend on the asset being traded.
Professional clients are afforded lower spreads than retail clients. But few clients will have the requisite deposit to meet that designation. Also, professional clients will waive their right to any funds protection that will be given to retail clients [regulation dependant].
There is a page with all the spreads of all the tradable instruments and they also have the overnight calculations, inactivity fees and maturity rollover fees.
It’s impossible to give a definitive answer as to spreads due to the many permutations involved in calculating the spreads so it’s better to get the actual spreads from the website itself.
With regards to share costs, Trading 212 commissions are zero. They have compiled a useful table comparing the costs to other share providers. Click below to expand.
Trading 212 Spread fees
Trading 212 fees will depend on several factors including:
The type of asset you are trading
If you are trading during standard market hours
The amount of liquidity available
Currency Conversion Fee: If buying stocks or ETFs you won’t have to pay will not need to pay any currency conversion fees as long as the base currency is the same as the one in your account balance. However, if you are trading in a currency which is not in your account balance then you will incur a 0.5% conversion fee
Inactivity Fee: It’s pleasing to see that a Trading 212 inactivity fee does exist. So your account can remain dormant for as long without incurring any inactivity charges. This is refreshing especially for occasional traders who may not realise this until they check back in on their account only to see their balance diminished.
Stamp Duty: If you are based in the UK then you would incur stamp duty which remains at 0.5%. However, this charge is just for UK based traders.
Leverage
The amount of leverage you are offered will depend on the regulation where your account is held.
If you are regulated in Bulgaria by the Financial Supervision Commission, your maximum leverage will be 1:30 in line with MiFID / ESMA regulations.
If you are regulated in the UK by the FCA your maximum leverage will be 1:30. Note that for professional clients this can be higher but you will forfeit your rights to the funds compensation scheme and other consumer protections offered by The FSCS.
Trading 212 leverage is governed by FCA/ ESMA rules. UK and EU regulators generally have lower leverage than some offshore brokers but you would benefit from much better funds safety levels (€100,000 and €20,000 respectively). If, however, you chose to be regulated offshore with a different broker then no funds protection is offered. So a tradeoff is usually required by you and will depend on how risk averse you are.
One thing to bear in mind is that if you deposit more to get the higher levels of margin then your funds will still be covered by the state-backed compensation schemes up to the requisite maximums. Therefore, trading with an unregulated broker at an offshore jurisdiction to get more leverage would give you no financial benefit but would carry the risks associated with offshore trading such as lack of compensation schemes, lack of arbitration as well as lack of consumer protection.
Trading Products
Trading 212 give you a variety of options for your investments.
They allow fee-free investing in Stocks & ETFs.
They also give access to a wide range of CFds. These include forex, stocks, commodities and CFD indices.
UK customers can also invest tax-free in a zero commission Stocks and Shares ISA.
Broker Comparison
Before you decide on a broker it’s always a good idea to compare with other similiar brokers to ensure that your broker will deliver what you are looking for.
You can select the brokers below and compare fees and features with other brokers. You can also compare funds safety levels as well as customer reviews from a variety of trusted sources.
By comparing, you have a better idea if this broker is right for you or if another one would be more suited to your requirements.
FAQs
Is trading 212 legitimate? Is trading 212 safe?
With regulations in the UK by the FCA you can be sure of Trading 212’s safety and legitimacy.
Is trading 212 good for beginners?
Trading 212 is an excellent choice for beginners due to its simple and user-friendly interface. Beginner traders will also benefit from funds protection offered by The FSCS adding an extra layer of comfort for beginners.
Is trading 212 legal?
Trading 212 is legal in that it is fully authorised by the FCA.
Is trading 212 a pyramid scheme?
No, Trading 212 is not a pyramid scheme. They have to adhere to incredibly strict regulations imposed by the FCA who take a very dim view of pyramid schemes.
How much money do you need to start trading 212?
You’ll be able to start by opening an Invest account with just $/£/€1. However, if you are trading on the CFD platform this will be $/£/€10 to account for leverage and margin requirements.
Do you pay tax Trading 212?
Trading 212 UK clients will only pay tax on gains of £12,000 per tax year. This is known as Capital Gains Tax. Trading 212 tax is therefore governed by your country of residence.
Can you lose money trading 212?
You can lose money with Trading 212. However, as a retail client, you will never lose more funds than you have initially deposited due to Negative Balance Protection.
Does trading 212 pay dividends?
Yes, Trading 212 pays dividends both on CFD and Invest Accounts. These will show up in your free funds section. For Invest/ISA accounts, dividends will be paid a few days after the payment date. CFD dividends will get paid into your account on the ex-dividend date.
Who is trading 212 owned by?
Trading 212 is owned by Ivan Ashminov and Borislav Nedialkov
Is trading 212 good for long term?
If you are using Trading 212 to invest in real stocks then they are a good place for long term investing. This is because your funds are safe and protected by the FSCS. However, if you are trading CFDs these are less suitable for long term trading.
How long do trading 212 withdrawals take?
Brokers regulated by The FCA including Trading 212 need to process withdrawals within one business day as per Section 7.13.13 (2)(b) of the FCA handbook.}
Is eToro better than trading 212?
eToro certainly has more users. Looking at customer reviews, traders seem to be more happy with Trading 212 than eToro, both with the apps and desktop platforms. The main thing, whether you sign up with Trading 212 or eToro is that you select FCA regulation on signup.
What’s the difference between Trading 212 CFD and Trading 212 invest?
CFD trading is trading on margin. You are basically trading the price movements of assets rather than owning the actual underlying asset. With Trading 212 invest, you will own the actual share of the product. CFD trading is more suitable for day traders whilst Trading 212 invest is better for long term investments.
How old do you have to be to open a trading 212 account?
You need to be at least 18 years old to open an account at Trading 212. This is the age at which you are legally permitted to enter into a contract on your own.
Can I day trade on trading 212?
Yes, you can day trade on Trading 212 on their CFD accounts.
Can you buy Bitcoin Trading 212?
No you cannot trade bitcoin at Trading 212. Since 6 January 2021 The FCA banned Bitcoin and other cryptocurrency trading.
Does trading 212 leverage?
All Trading 212 CFD accounts offer leveraged trading up to 1:30.
Can you short stocks trading 212?
Yes, you can short-sell stocks with Trading 212 but only on their CFD Accounts.
Does trading 212 allow scalping?
No, you cannot scalp with Trading 212. It is strictly forbidden.
Is trading 212 bad?
Trading 212 is a highly regulated broker. They are also regulated in The UK by The FCA which are incredibly strict in their vetting processes. Customer reviews from Trustpilot and Apple App Store are overwhelmingly positive.
Is trading 212 Halal?
You can request an Islamic account at Trading 212. Trading 212 makes Islamic accounts available to any trader who wishes to abide by Sharia Law and remain halal in their trading practice. However, you also need to make sure that your investments are Shariah compliant. You can do this by using a shariah stock screener such as Islamicly or Finispia to determine the stock’s compliance.
Does trading 212 have inactivity fees?
Trading 212 does not apply an inactivity fee to accounts.
Is my money safe with trading 212?
If you are regulated by Trading 212 in the UK by The FCA you will fall under the purview of The Financial Services Compensation Scheme (FSCS) and have 100% deposit protection up to £85,000.
Can I transfer shares from trading 212?
No, unfortunately in-species transfers are not possible. If you currently have assets, you will need to liquidate them first and purchase new shares.
How does trading 212 make money?
Trading 212 heavily markets itself as a commission-free trading. Whilst this is true and they do in fact offer commission free trading, it’s also true that they use it to entice customers who are then likely to switch to other more lucrative products such as CFDs. The revenues from the CFDs (spread and the interest swap) are then used to subsidise the commission-free trading.
Conclusion
Trading 212 is suited both to novices as well as more experienced traders. Their in-house developed app is excellent and gets wide acclaim from the trading community. Its offer of commission free trading with a simple account structure makes it a very popular choice for many traders.
Trading 212 offers great levels of customer support and quick and easy withdrawal of funds. Being FCA regulated is an important consideration and you can trade knowing that your funds are protected.
3.68/5 From 259,397 Trading 212 Customer Reviews
James is an ex-Barclays Bank financial services professional who wants to create a safer investing space for newcomers. James provides facts, not opinions on all brokers reviewed.
Review Last Updated July 2023
