Trading 212 is a European and UK-regulated broker that proves to be an excellent option for novice investors, offering a diverse range of stocks and ETFs available for commission-free trading. An attractive feature is the intuitive trading interface accessible on both web and mobile platforms. For those mindful of expenses, Trading 212 offers attractive interest rates on cash holdings, although it’s important to consider its steep conversion fees and opt for a multi-currency account if possible. While Trading 212 provides a CFD trading platform, its elevated fees may deter traders from choosing it as their primary option.
Safety
Trading 212 was founded in Sofia, Bulgaria, in 2004 and expanded to establish its primary headquarters in London, UK, in 2013. The longevity of a brokerage firm often provides assurance of its resilience through past financial downturns. They are under the regulation of the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and Bulgaria’s Financial Supervision Commission (FSC). The fact that Trading 212 is regulated by the reputable FCA and has a substantial operational history further enhances its safety credentials.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| United Kingdom | Trading 212 UK Limited (UK) | Financial Conduct Authority (FCA) | £85,000 |
| EEA Countries | Trading 212 Markets Ltd | Cyprus Securities and Exchange Commission (CySEC) | €20,000 (90% of your funds) |
| All Other Countries | Trading 212 Ltd | Bulgarian Financial Supervision Commission (FSC) | €20,000 (90% of your funds) |
It’s crucial to note that Trading 212 provides protection against negative account balances.
Account Opening Process
Trading 212’s account opening process is quite straightforward and user-friendly. In general, you can verify your trading account in less than a day. They accept clients from basically all across the globe. Some exceptions are clients from the United States and Canada.
As mentioned above, the account opening process is user-friendly and completely digital. In general, your new account will be verified within a couple of hours. This can be done by providing your country of residence and entering personal details. Additionally, you will also be required to provide your tax information.
Account Types
| Account Type | Description |
|---|---|
| CFD Account | For clients from all across the globe who trade CFDs |
| Invest Account | For clients from all across the globe who trade stocks and ETFs |
| ISA Account | For client from the United Kingdom who trade stocks and ETFs |
It is worth noting that corporate accounts are sadly not available.
Products
Trading 212 provides its clients with the opportunity to trade real stocks, ETFs as well as CFDs, such as forex, stock, index, and so on. However, it is worth noting that the selection of instruments is less complex than some of the more established players within the industry.
Stocks
Traders from all across the globe have the opportunity to invest in real stocks while working with Trading 212. They can choose between a wide range of instruments, which include more than 9,000 stocks. A feature worth mentioning is the Pie function, which shows your portfolio of investments as a slice of the pie for each individual asset up to a total of 50. Additionally, you have the option to use the sliders, which allow you to adjust the percentage of the invested funds within each slice of the pie. There is also a rebalance button where the algorithm makes automatic adjustments in order to adapt based on the actual value of each individual investment.
Fees
Trading 212 provides commission-free trading for stocks and ETFs, with no charges for deposits, withdrawals, or account inactivity. Nevertheless, the fees associated with forex trading are elevated.
No Stock Commissions
It’s worth noting that Trading 212 offers commission-free trading for stocks.
| Stock Type | Commission Cost |
|---|---|
| US Stock | $0 |
| UK Stock | $0 |
| German Stock | $0 |
Withdrawal, Inactivity & Other Fees
There are no fees charged for account maintenance, inactivity, or withdrawals. Deposits to CFD accounts and bank transfers to Invest accounts are also exempt from charges. However, a deposit fee of 0.7% applies if the total deposit to your Invest account exceeds €2,000 and is made via credit/debit cards or electronic wallets. Additionally, there’s a 0.5% currency conversion fee for CFD trading, and for real stocks and ETFs, a currency conversion fee of up to 0.15% is applicable. Currency conversion takes place when trading assets in a currency different from your account’s base currency.
| Fee Type | Fee Value |
|---|---|
| Account Fee | ❌ |
| Deposit Fee | ❌ |
| Conversion Fee | 0.33% |
| Inactivity Fee | ❌ |
| Withdrawal Fee | ❌ |
Conclusion
In conclusion, Trading 212 is a European and UK-regulated brokerage suitable for mostly beginner investors. They offer a wide range of trading instruments, especially stocks and ETFs, which allow commission-free investing. As mentioned earlier, it is recommended for beginner investors. One of the reasons being a straightforward account opening process as well as an easy to use trading platform. Trading 212’s main setback is the limited range of tradable assets in comparison to some of the more established brokerages out there. That said, if you are a more experienced trader, you might want to explore slightly further.
