Trading 212, a leading trading and investment platform in the UK, has gained attention as one of the best trading platforms for beginners and advanced traders alike. In our Trading 212 review, we examined its comprehensive range of options for investors, including CFD trading and direct trading with various financial instruments like stocks, currencies, commodities, indices, and cryptocurrencies. Users particularly appreciate the user-friendly software and attractive conditions for Forex and CFD trading.
But is there a downside to Trading 212? Is it too good to be true? We conducted thorough research and discovered interesting facts you should know. In this article, we will provide the following topics:
The key facts at a glance
| 📅 Founded: | 2006 |
| 💹 Financial Instruments: | Stocks, ETFs, and CFDs on Stocks, ETFs, Indices, Forex, and Commodities |
| 🎮 Demo Account: | Yes |
| 💵 Minimum Deposit: | £1 |
| 📉 Minimum Trade: | 0.01 lots |
| 📜 Regulated by: | FCA |
| 📱 Native Mobile App: | Yes |
| 💱 Number of Supported Base Currencies: | 9 – GBP, EUR, USD, RON, PLN, CHF, SEK, NOK, CZK. |
| 🤖 Auto-Trading: | No |
| 👍 Available in the UK | Yes |
| 💳 Deposit and Withdrawal Methods: | Bank Transfer, VISA, MasterCard, Bancontact, CASHU, Dotpay, Giropay, SafetyPay, Skrill, UnionPay |
| 💰 Trading Fees: | £0 |
| 💰 Custody Fees: | Variable |
| 💰 Withdrawal Fees: | £0 |
| 💰 Currency Exchange Fee: | 0.15% of the value of the trade when buying or selling non-UK shares |
| 📊 Leverage: | 1:30 |
| 🎧 Customer Support: | British Telephone Hotline, Email, Social Media Platforms, and Chat Function |
| 👥 Social Trading: | Yes |
Pros and Cons of Trading 212
| Trading 212 Pros | Trading 212 Cons |
| ✔️ Demo account | ❌ No investment programs |
| ✔️ The software is innovative and user-friendly | ❌ Limited contact options for support |
| ✔️ No trading fees on the exchanges | ❌ Young trading platform |
| ✔️ Low CFD fees | |
| ✔️ Ideal for beginner investors | |
| ✔️ Trading with fractional shares possible | |
| ✔️ Wide product range | |
| ✔️ Low minimum deposit | |
| ✔️ Narrow spreads | |
| ✔️ No fees for deposits and withdrawals | |
| ✔️ Fast deposit with a credit card, Google Pay, SEPA transfer, Instant bank transfer, etc. |
Trading 212 Accounts
Having an adequate selection of tradable instruments is an important factor when choosing an online broker. Trading 212 provides its investors with a remarkable range of financial instruments to meet individual requirements.
Trading 212 divides its offerings into two categories. Firstly, Trading 212 Invest offers the opportunity to trade physical stocks and ETFs. Secondly, Trading 212 CFD provides the option to trade CFDs on stocks, currencies, commodities, and indices. Additionally, Trading 212 also enables trading with cryptocurrencies, making it a preferred choice among cryptocurrency exchanges in the UK.
Trading 212 Invest – trading with physical stocks and ETFs
The main difference between the CFD and the Invest account is how you trade. In an Invest account, you buy and sell real shares of assets. On the other hand, in a CFD account, you speculate on the price movements of CFD-based instruments without actually owning the underlying assets. The online broker offers its customers a selection of over 10,000 global stocks and ETFs. Additionally, you have the opportunity to purchase fractional shares of large corporations like Google, Amazon, and Apple for as little as 1 euro, enabling you to diversify your portfolio with minimal financial investment.
Another advantage of trading with Trading 212 Invest is the absence of foreign currency fees. Additionally, investors can take advantage of buying stocks and ETFs with zero commission. When it comes to Invest/ISA accounts, it is important to note that the price chart displays the Last Trade Prices. These prices are derived from external financial sources and should be understood as non-binding information for the execution of orders.
Trading 212 CFD – trading with CFDs
In the CFD account, investors have the opportunity to engage in speculative trading, specifically focusing on the price movements of CFD-based instruments, without the requirement of owning the underlying assets. Trading 212 CFD offers a wide range of tradable CFDs that cover various underlying assets. The platform now provides over 3,000 CFDs on stocks, forex, gold, oil, and indices.
- Stocks: Numerous companies are available for stock trading, including Lloyds, Amazon, and Tesla.
- ETFs: With Trading 212 Invest, you gain access to a wide range of investment opportunities, including over 10,000 shares and ETFs. The platform allows you to start investing with as little as £1. You have the flexibility to invest in shares of companies listed in various markets such as the UK, Germany, the United States, the Netherlands, Switzerland, and Madrid.
- Forex: In the forex market, Trading 212 offers competitive margins and the opportunity to trade more than 150 different currency pairs.
- Commodities: Many traders use commodity trading to diversify their portfolios and minimize risks. Trading 212 offers a selection of additional underlying assets in addition to classic commodities like gold and oil.
- Indices: Trading 212 allows for trading over 30 indices from major and niche markets. This includes indices such as the FTSE 100, Dow Jones, and Nikkei 225.
The charts provided for CFD trading offer valuable information with regard to the Buy and Sell prices. These prices hold a crucial role in executing orders, as they serve as binding references for traders. By consulting these charts, you can make an informed decision and carry out transactions based on the displayed Buy and Sell prices.
While Trading 212 has taken steps to reduce risks and protect traders, it is crucial to approach trading with caution and make well-informed decisions. Trading 212 has implemented protective measures to enhance the safety of traders. These measures include negative balance protection, which ensures that your account maintains a positive balance, even in times of market volatility. Additionally, Trading 212 allows you to set specific price points to exit your investments, enabling you to manage your profits and limit potential losses.
However, it is essential to acknowledge that trading inherently involves risks. According to statistical data, a significant percentage (76%) of retail CFD accounts with this provider have experienced financial losses. As an investor, it is crucial to conduct thorough research, understand the intricacies of trading, and carefully assess the potential risks involved.
Furthermore, it is worth noting that Trading 212 applies a currency conversion charge of 0.50% and requires a minimum deposit of £10.
ISA Account: tax-efficient savings or investments
An ISA, or Individual Savings Account, is a tax-efficient savings or investment account available to UK residents, allowing you to put money into a wide range of investments. Essentially, it exempts you from paying capital gains and dividend taxes on your investments, while you can add money up to the annual allowance set by HMRC. ISA in UK parlance is sometimes referred to as a ‘Tax Wrapper’. Trading 212 exclusively provides the Stocks & Shares ISA option, allowing UK residents to make tax-efficient investments within this account.
Within a Stocks and Shares ISA, you have the flexibility to include various types of investments, including funds, shares, investment trusts, exchange-traded funds, government bonds (gilts), and corporate bonds. The advantage of holding investments within an ISA is that they are shielded from income tax, tax on dividends, and capital gains tax.
However, there is a maximum annual allowance for deposits into an ISA. Currently set at £20,000, this allowance ensures that you can distribute your savings across multiple accounts, as long as the total does not exceed the annual limit. It’s worth mentioning that different ISA types may have varying allowances. For instance, a Lifetime ISA has a reduced allowance of £4,000 per year, while a Junior ISA allows up to £9,000 per year. These allowances are designed to align with the UK tax year, which spans from April 6th to April 5th.
Pro Account: utilize higher leverage
As a trader in the UK and customer of Trading 212 UK Ltd., you can choose to request a professional CFD account for your active account.
To access this choice, go to the ‘Menu’ and choose the Pro account category. By selecting a professional CFD account, customers can enjoy the advantage of capitalizing on increased leverage, with ratios reaching up to 1:500.
To qualify as a Pro client with Trading 212 UK, you must meet at least two out of the following three criteria:
- Execute an average of at least 10 significantly-sized trades per quarter within the past year. These trades should reflect a substantial level of engagement in the trading process.
- Possess a financial instruments portfolio valued at €500K or higher. This indicates a considerable level of investment and financial resources.
- Have at least one year of professional experience in the financial sector, specifically in a role that necessitates knowledge of leveraged trading. This requirement ensures a solid understanding of the complexities and risks associated with leveraged trading.
Please take note that the Pro client option is currently available only for traders in the UK registered under Trading 212 UK.
Trading 212 Fees: a comprehensive overview
When assessing an online broker, the cost structure is an important factor. Therefore, in the following, we will take a closer look at the conditions for trading stocks and ETFs, as well as trading CFDs with Trading 212.
Trading 212 offers an appealing fee structure, although they have expressed intentions to introduce additional premium financial services that may require payment for access. When it comes to non-trading fees, Trading 212 stands out. They do not impose any account fees, inactivity fees, deposit fees or withdrawal fees.
For deposits made through credit or debit cards, Google Pay, Apple Pay, or Skrill, there are no fees until a total deposit of £2,000 is reached. After reaching this limit, a 0.7% fee will be applied to cover costs imposed by payment providers and card companies, as per their explanation.
What we love is that deposits made into your CFD account remain free from fees and without any limits.
Trading 212 Invest – Fees
As a Trading 212 customer, you can enjoy highly favorable trading conditions. One significant advantage is the option of zero-commission trading, which means you won’t be charged any fees for your trades. Additionally, there are no costs for keeping your positions open overnight. You also have access to a wide variety of financial instruments, and you only need to pay the spread when trading them.
Another benefit is the low minimum deposit requirement of just £1 for your Trading 212 Invest account. For bank transfers, there is a minimum limit of £10. Deposits and withdrawals are completely free, and the minimum withdrawal amount is only £1.
Trading 212 CFD – Fees
If you have an interest in CFD trading and are considering Trading 212 for its CFDs offering, it’s important to have an understanding of the trading conditions set by the online broker. Deposits and withdrawals on this platform necessitate a minimum deposit of £10 and do not incur any extra CFDs fees.
Nevertheless, when engaging in CFD trading, it is crucial to take into account additional expenses. Although Trading 212 does not impose commissions, there are swap fees associated with keeping positions open overnight, which vary based on the specific instrument being traded. Furthermore, a fee of 0.5% is applied for currency conversion during CFD trading.
You can easily access the spreads for each financial instrument on the Trading 212 website. While there are no inactivity fees, it’s worth noting that distinct margin rates are applicable for trading each individual instrument.
| Margin-Rate | Leverage Equivalent | |
| Common Currency Pairs | 3,33% | 1:30 |
| Rare Currency Pairs | 5% | 1:20 |
| Gold | 5% | 1:20 |
| Other Commodities | 10% | 1:10 |
| Stocks and ETFs Fees | 20% | 1:5 |
| Main Indices | 5% | 1:20 |
| Rare Indices | 10% | 1:10 |
| Kryptowährung | 50 % | 1:20 |
Trading 212 ISA – Fees
Trading 212 offers the following fee structure for their ISA accounts:
- Trading commission: There are no fees charged for trading.
- Custody fee: There is no custody fee associated with Trading 212 ISA accounts.
- FX fee: A fee of 0.15% is applied for foreign exchange transactions.
- Deposits via bank transfer: Deposits made through bank transfer are free of charge.
- Deposits via Cards, Google Pay, Apple Pay, and other payment methods: Deposits up to £2,000 are free, and thereafter a fee of 0.7% will be applied.
- Withdrawals: There are no fees for withdrawing funds from your Trading 212 ISA account.
It is important to review these fee details to have a clear understanding of the costs associated with Trading 212 ISA accounts.
Trading 212 App: a user-friendly mobile trading platform
As an additional advantage, Trading 212 also offers its customers a mobile trading platform in the form of an app for mobile devices. You can download the app from both the App Store and Android, and it is available for both Android and Apple devices. With over 133,000 reviews on Google Play alone and an average rating of 4.5 out of 5 stars, the Trading 212 app has an excellent reputation among users.
Trading 212 – account opening process
Creating an account with Trading 212 is a hassle-free process that is designed to be simple, straightforward, and efficient. The application can be completed within a short span of 15 minutes, and once submitted, newly opened accounts are typically activated within one business day. While Trading 212 is available to users worldwide including the UK, there are certain exceptions where individuals are unable to open an account, such as in the United States or Canada.
In order to initiate the account opening process with Trading 212, it is necessary to follow these steps:
- Complete the online application: The application process at Trading 212 is quick and convenient, as it is entirely conducted online. During this step, you will be required to provide personal information, select an appropriate account plan, disclose your trading experience and financial situation, and undergo identity verification.
To verify your identity and residential address, you will need to upload the following documents:
- Proof of identity: This can be a national ID card, passport, or driver’s license.
- Proof of residency: You will need to submit a bank statement or utility bill issued within the last three months.
Once your submitted documents have been reviewed and verified, Trading 212 will generally approve and activate your account within one business day.
Trading 212 – trading process
To begin trading on Trading 212, you need to make an initial deposit. The minimum deposit required is only £10 for CFD accounts and £1 for Invest or ISA accounts. This makes it suitable for those who want to start with smaller amounts.
Trading 212 offers a web-based trading platform and a mobile app that are easy to use. If you need help navigating these platforms, Trading 212 provides tutorial videos. They also offer a demo account where you can practice using the platform without risking real money.
Trading 212 customer service review
The accessibility of the broker is an important factor when choosing a trading platform. As part of our Trading 212 review, we found that the broker provides various channels for contacting support:
- British telephone hotline (+44 20 3769 9897)
- Email (info@trading212.com and a contact form)
- Social media platforms like Facebook
- Chat function within the Trading App
Based on our experience, when reaching out to support, you will receive quick and friendly assistance. However, for a phone call, you will need to bear the costs of an international call. Alternatively, you can expect a prompt response via email. You can also engage with other traders through the community, similar to eToro.
Is Trading 212 legal and safe to use in the UK?
In general, it can be assumed that Trading 212 is a reputable online broker. This is due to the regulatory requirements in place in the UK and Bulgaria, as well as measures such as providing segregated accounts and deposit protection through the FSCS (Financial Services Compensation Scheme). The popularity of the Trading 212 app and the high number of downloads also indicate a certain level of security provided by the provider. The key aspects that speak to the security of Trading 212 are:
- Security Operations Center: Trading 212 has a dedicated 24-hour security operations center to ensure data protection.
- Segregated Accounts: Customer funds at Trading 212 are held in segregated accounts to protect them.
- Deposit Protection: Trading 212 offers deposit protection of up to 1,000,000 euros per account.
- Regulation: Trading 212 is regulated by both the UK Financial Conduct Authority (FCA) and the Bulgarian Financial Supervision Commission.
How does Trading 212 make money?
Trading 212 generates revenue through various means, including earning profits from spreads, fees associated with stock lending, charges for holding positions overnight or over the weekend, as well as conversion fees.
The primary source of revenue for Trading 212 is the spread, which refers to the difference between the highest or “offer” price at which investors can buy an asset (such as a share) and the lowest or “bid” price at which they can sell it. Typically, investors focus on buying at a favorable high price and selling closer to the lower price.
Trading 212 Review: Our Final Verdict
After conducting a thorough Trading 212 review, it becomes clear that Trading 212 is an excellent option for beginners due to its remarkable transparency and reasonable cost structure, making it one of the cheapest trading platforms in the UK. Trading 212 is a reliable broker regulated by the prestigious FCA and the Bulgarian FSC, providing additional security.
Trading 212 stands out as more than just an esteemed ETF broker in the UK, as it allows trading a wide variety of financial instruments, including forex, cryptocurrencies, stocks, CFDs, as well as ETFs and index funds. The offered index funds cover various markets and asset classes such as stocks, bonds, commodities, and currencies. The trading fees for different financial instruments are also highly competitive but vary depending on the selected instrument.
Trading 212 offers a user-friendly trading platform that allows you to trade easily and effectively. Additionally, the free demo platform provides an great opportunity to practice trading before investing real money.
FAQ
Is Trading 212 legit or a scam?
After conducting our Trading 212 review, we found that Trading 212 is a legitimate company that is regulated by esteemed financial authorities such as the Financial Conduct Authority (FCA), the Financial Supervision Commission of Bulgaria (FSC), and the Cyprus Securities and Exchange Commission (CySEC).
If you want to ensure the safety of your funds with a broker, we recommend finding answers to two important questions. Firstly, consider the broker’s background. Trading 212 has been operating since 2004, demonstrating its ability to navigate financial challenges over time. Secondly, inquire about the protection available if something goes wrong. Trading 212’s adherence to regulation by top-tier authorities and its extensive experience in the industry provide additional safety measures for your investments.
How can I resolve account verification issues related to my bank account statement?
To ensure that your bank account statement is accepted by Trading212, please make sure that it includes the following information and meets specific criteria. Firstly, your full name should be clearly stated on the statement. Secondly, ensure that your full residential address is visible and easily identifiable. Additionally, the statement should clearly display your account number or IBAN. Lastly, check that the date of issue is present on the statement and falls within the required timeframe.
Do I have both stop loss and take profit options on my open position with Trading 212?
You have the flexibility to set target prices for both Take Profit and Stop Loss orders. This can be done either when you have an open position or even before opening one. Once the price of the instrument reaches the specified value for either order, your position will be automatically closed.
Does Trading 212 have negative balance protection?
Trading 212 ensures that you cannot lose more money than you deposit, thanks to the protection against a negative balance. This protection is available for retail clients trading on a CFD Account. However, if you are using an Invest or ISA account without leverage, you can only lose the amount you deposit.
Please note that as a professional trader with a CFD Account, you won’t have access to negative balance protection, which means there is a possibility of losing more than your deposited amount.
In addition to negative balance protection, Trading 212 offers segregated accounts to secure your funds. They are also part of a compensation scheme under the FCA Branch, providing up to £85,000 in case of significant financial issues at the broker. To ensure your safety, Trading 212 operates a dedicated 24/7 Security Operations Center, continuously monitoring traffic and providing real-time alerts, a feature that has been positively acknowledged in this Trading 212 review.
What are the supported countries for Trading 212?
Trading 212 accepts traders from more than 100 nations across the globe, such as the United Kingdom, Australia, Japan, Singapore, Spain, Germany, the Netherlands, Poland, Romania, and the United Arab Emirates. However, there are a few notable exceptions, including Canada, the United States, and China.
What is the Trading 212 trust score and how is it calculated?
Trading 212 has earned a great level of trust, reflected in its overall Trust Score of 77 out of 99. Unlike publicly traded companies and banks, Trading 212, evaluated in this Trading 212 review, operates under the authorization of one tier-1 regulator, indicating a substantial level of trust, and one tier-2 regulator, representing an average level of trust. Importantly, Trading 212 does not fall under the jurisdiction of any tier-3 regulators, which are typically associated with a low level of trust.
The Trust Score is a thorough evaluation that measures how trustworthy and reliable a platform is. It considers factors like regulatory authorizations, industry certifications, corporate governance practices, and the platform’s overall reputation. By analyzing and assigning weights to these factors, the Trust Score provides users with an objective measure of the platform’s trustworthiness. This helps users assess the platform’s reliability when it comes to trading.
There are various platforms and organizations that provide trust scores or ratings for different entities like Trustpilot, BBB (Better Business Bureau), and various financial rating agencies.