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Trading 212 Review 2024: Fees, Pros & Cons

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Swen Keller
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Trading 212 Review: Our Take

Trading 212 is a great choice for traders looking to participate in stock trading and ETF trading.

However, even though the platform offers zero-commission trading, it charges very high spreads and deposit fees. 

It also provides low leverage when compared to other options in the industry. 

In addition, Trading 212 doesn’t support popular trading platforms like MetaTrader 4 and 5, only its proprietary platform.

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Out of 5
0
3.3/5

Important Risk Warning: Investing in and/or trading CFDs, financial instruments, commodities, and other assets involves a significant level of risk. There is a possibility of losing all the funds you have deposited. Prior to engaging in any such activity, it is essential that you fully understand and acknowledge the associated risks. Please be advised that Skrumble.com does not offer investment or any other form of advice. The information provided in our review should not be construed as financial advice in any way.

Table of Contents
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    An Overview of Trading 212

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    Trading 212 was founded in 2004 and is headquartered in the United Kingdom.

    The platform allows users to trade stocks, ETFs, Forex, indices, commodities, and more.

    Currently, Trading 212 holds £3.5 billion in clients’ assets and hosts 2 million lifetime funded accounts.

    Trading 212 was the first stock brokerage to offer the first zero-commission stock trading service in the United Kingdom and Europe. 

    The platform’s mobile app has over 15,000,000 downloads.

    Pros

    Cons

    Trading 212 Review: Unique Features

    Trading 212 Pro Account

    Trading 212 Pro account is an advanced account type available to users who hold a CFD retail account with Trading 212 UK Ltd and meet certain requirements. 

    To become a Pro client, you need to have carried out at least 10 significantly sized trades each quarter across the last year. 

    Your portfolio must also be worth €500K or more. 

    Trades that are considered significantly sized must have £10,000 notional trade value for ETFs and equities of £50,000 notional trade value for Forex, Indices, and Commodities. 

    You can also apply for the Pro account if you currently work or have worked in a financial sector for at least one year in a professional position that requires knowledge of CFD trading, leveraged trading, and their associated risks. 

    Your evidence for working in the financial sector can be a copy of your employment contract or an employment confirmation letter or payslip signed by HR. 

    Trading 212 does not accept university degree qualification certificates. 

    You will need to provide evidence of trades to Trading 212 if your trading history is on a different regulated broker. 

    The evidence provided can be a PDF copy of your account statement in the last 12 months with your full name. 

    If your trading history is on Trading 212, you do not need to provide copies of your statements. 

    That said, Trading 212 accepts the following financial portfolios: Mutual funds, Stock portfolios, Trading Accounts, Cash Savings, and Stocks and shares ISAs

    The notional value of trades on leveraged accounts will be accepted as a reflection of the actual size of the portfolio. 

    Trading 212 does not accept the following financial portfolios: Non-Tradable assets, Crypto, Company Pension, Property, Luxury Cards or Jewelry. 

    Trading 212 Pro account gives you access to higher leverages than what is available on retail accounts. 

    Below is a breakdown of the margin rates for professional accounts and retail accounts: 

    • Major Currency Pairs: 1:500 (pro) and 1:30 (retail)
    • Commodities: 1:300 (pro) and 1:20 (retail)
    • Major Indices: 1:500 (pro) and 1:20 (retail)
    • Minor Currency Pairs 1:300 (pro) and 1:20 (retail)
    • Minor Indices: 1:300 (pro) and 1:10 (retail)
    • Stocks and Indices: 1:20 (pro) and 1:5 (retail)

    Only Trading 212 UK Ltd clients can apply for a Professional CFD account for their live account. 

    Pro account clients can demote or switch back to the retail account whenever they wish. 

    To do this simply close all open positions and contact the customer care team. Your request will be reviewed and promptly responded to.

    Pie and AutoInvest

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    A pie is a collection of Securities (stocks and ETFs). 

    Each security is represented as a slice of the pie. And each pie of Trading 212 can hold up to 50 securities (slices).

    You can also have more than 1 pie on the platform. 

    AutoInvest, on the other hand, allows you to make deposits to your pies using a customized deposit schedule

    It allows you to invest automatically using your preferred payment method. 

    Pies and AutoInvest help you achieve your financial objectives by making it easy for you to maintain a diversified portfolio regardless of market fluctuations. 

    It also simplifies the allocation of contributions to your portfolio. 

    With AutoInvest, you do not need to do any manual calculation of how much to allocate to your portfolio, once the criteria are set, the system will automatically determine the appropriate allocation for each ETF and automatically invest. 

    Creating a pie of Trading 212 is easy. 

    You can either copy an existing pie from the pie library or build your pie from scratch. 

    To build your pie from scratch, do the following: 

    Go to the Portfolio Section in your account and select the “Pies” category 

    Click on “Create Pie” 

    Go through the available stocks and ETFs and pick the one you wish to invest in

    Once you have made the selection, tap on the arrow. 

    You can use the sliders provided to adjust the target weight of each slice in the pie. The target weights will determine how your invested funds will be allocated in the Pie 

    Note: You can always edit your pie and the slices in it after the pie has been created. 

    Trading 212 offers both Auto Invest and Manual Invest. 

    With manual investment, you will manually contribute funds to the pie. But with Auto Invest funding and investing will be done automatically. 

    All you need to do is choose the desired contribution amount and schedule the investment. 

    If you want to invest and withdraw funds on your own, choose Manual Invest when creating your pie. 

    If you choose AutoInvest, the next thing to do is to set up your investment plan. 

    Use the slider to customize the deposit amount, and schedule an investment duration. 

    You can also increase the initial deposit value if you wish to start with a lump sum. 

    Once your investment amount has been set, the next thing to do is personalization. 

    Choose a name and icon for your pie. 

    Next, review the pie to be certain that everything is in place. 

    Select a payment method to link to AutoInvest. 

    Once you do this the initial deposit will be immediately made. 

    That’s it, your pie has been created and subsequent deposits will be made according to your deposit schedule.

    Trading 212 Review: Tradable Symbols Available

    Trading 212 supports several instruments. Supported instruments differ based on the account type. 

    The 212 Invest account and ISA account support the trading of over 12,000 ETFs and Real Stocks from the US, UK, Netherlands, France, Spain, Germany, and other regions. 

    This includes Investment Trusts, Ordinary Shares, Exchange Traded Funds (ETFs), Preferred Shares, Real Estate Investment Trusts (REITs), Exchange Traded Products (ETPs), and Exchange Traded Commodities (ETCs). 

    CFD Accounts on Trading 212 support the trading of Forex, Index Futures, Commodity Futures, ETFs, Stocks, Forex Futures, Treasury Futures, and Cryptocurrencies CFDs. 

    It supports over 7,000 CFDs in stocks, Forex, Oil, Gold, Indices, etc. 

    That said, Crypto CFDs are only available for accounts with Trading 212 Markets Ltd. 

    Tradable symbols on Trading 212 accounts include XAUUSD, Tesla, GBP/USD, Germany 40, USD 500 EUR /USD, USD/JPY, Coinbase, Amazon, Apple, Plug Power, Nikola, USD/CHF, Japan 225, Alibaba, Meta Platforms, Microsoft, Platinum 22 Dec23, 

    GameStop, EUR/GBP, Hong Kong 50, Eur50, Walmart, NZD/USD, Netflix, PayPal, Target, Italy 40, Netherlands 25, Cotton 06Feb24, US Treasury Bond, etc

    Trading 212 Review: Fees and Spreads

    Trading Fees and Custody

    Unlike some CFD and forex trading platforms, Trading 212 does not charge commissions or a custody fee

    But it does charge a currency conversion fee of 0.15% even on weekends.  

    The FX fee/ currency conversion fee applies when you convert funds from one currency to another or you execute trades that involve currency conversion. 

    Drawing from our in-depth analysis of Trading 212, we noticed that the trading platform uses the interbank rate for currency conversion. 

    This is the same rate that banks use to convert currencies with one another. 

    Deposit and Withdrawals 

    Trading 212 does not charge deposit fees via bank transfers. 

    For deposits up to €2,000/$2,000 (cumulative) via credit and debit cards, Google Pay, Apple Pay, and others Trading 212 does not charge fees.

    That said, for deposits over €2,000/$2,000 Trading 212 charges 0.7% of the total amount in fees. 

    Trading 212 does not charge withdrawal fees. All withdrawals are free.

    Administrative Fees 

    Trading 212 does not charge inactivity fees, account management fees, account closure fees, or statement fees. 

    Government Levies and Tax 

    UK stamp duty

    This is a 0.5% fee applied by the United Kingdom government when buying UK shares. 

    PTM levy

    This is a £1 fee applied by the United Kingdom government when buying or purchasing UK shares worth over £10,000. 

    French Financial Transactions Tax

    This 0.3% tax is applied by the French government when buying particular French shares. 

    FINRA Fee

    This is $0.000145 per share and is charged by the US government when selling US shares. 

    SEC Fee

    The SEC fee is 0.00229% and it is applied by the government of the United States when selling US shares. 

    Commissions and Spreads 

    Trading 212 charges high spreads on Forex pairs which average at 1.1 pips during peak periods. The spreads vary from fixed and floating depending on the currency pair being traded. 

    There are no commissions charged by the trading platform. 

    Trading 212 Review: Payment Methods

    Trading 212 accepts the following payment methods: Bank transfer, instant bank transfers, card payments (credit card and debit card), Giropay, Blik, Direct eBanking, Carte Bleue, PayPal, iDEAL, Google Pay, Apple Pay, and OnlineBankingPL.

    Note that gift cards and prepaid cards are not accepted. 

    Also, some payment methods may not be available depending on your type of account or region. 

    PayPal is only available for trading CFD accounts registered under Trading 212 UK Ltd.

    It is also available for trading accounts in the following regions UK, EEA, and Switzerland for accounts with the following base currencies: GBP, USD, EUR, NOK, SEK, CZK, PLN, or CHF. 

    That aid, Trading 212 charges interest on trades held overnight. Interest rates vary based on the type of position.

    Trading 212 Review: Security

    Our meticulous research on this broker indicates that Trading 212 is a regulated broker that uses industry-standard technologies to ensure the security of user’s funds and a secure trading environment. 

    The platform is kept safe using technologies like web application firewalls and distributed denial of service mitigation services

    Trading 212 also has a dedicated Security Operations Center that functions 24/7.

    Specialist third parties also conduct regular vulnerability scanning and penetration testing to ensure that any issue is promptly identified and resolved before they are exploited by malicious third parties. 

    Trading 212 does not have any debt and maintains solid cash reserves. 

    Assets belonging to registered users of Trading 212 Markets Ltd are covered by the Investors Compensation Fund (ICF) – Cyprus and you will be compensated for up to €20,000. 

    Assets of clients registered under Trading 212 UK Ltd are protected by the Financial Services Compensation Scheme (FSCS). 

    With compensation up to £85,000.

    Trading 212 also has additional insurance for up to 1M EUR per client, underwritten by Lloyds of London. 

    Users’ accounts are protected with two-factor authentication, passcode, and biometric recognition.

    Supported Countries

    Trading 212 is available in over 60 countries. 

    Supported countries include the United Kingdom, Kuwait, Moldova, Colombia, Bolivia, Qatar, Oman, Mexico, United Arab Emirates, Ghana, Tanzania, Uganda, Austria, Bulgaria, Hungary, Italy, Ireland, Iceland, Sweden, Switzerland, Oman, Malta, Mexico, etc. 

    Trading 212 is not available in the United States of America and other regions where its services are prohibited or restricted.

    Licenses Held by Trading 212

    Our detailed firsthand scrutiny of this broker showed that Trading 212 is the trading name of Trading 212 Markets Ltd., Trading 212 UK Ltd., and Trading 212 Ltd. 

    Trading 212 Ltd is registered in Bulgaria and regulated by the Financial Supervision Commission. 

    Trading 212 UK Ltd. is registered in Wales and England. It is authorized and regulated by the Financial Conduct Authority. 

    Trading 212 Markets Ltd. is registered in Cyprus. It is regulated and authorized by the Cyprus Securities and Exchange Commission.

    Opening a Trading 212 Account

    To open a Trading 212 CFD and Forex trading account on the platform go to https://www.trading212.com/.

    Once there, click on the Get App button at the top center of your screen.

    Note that Trading 212 does not offer a web trading platform so you’ll need to go through the broker’s mobile app to sign up

    Clicking the Get App button will automatically open the Trading 212 Google Play Store or Apple App Store page on your phone depending on the device operating system you use. 

    Next, tap on the Install button to start downloading the Trading 212 mobile app. 

    Launch the downloaded app by tapping on the Open button. 

    After it opens, click on the Open Account button on your screen.

    Choose your country of residence then tap next. 

    Select your CFD trading account. Trading 212 supports 3 types of trading accounts

    If you choose the CFD account you’ll get a message stating that 78% of retail investor accounts lose money when trading with them and that you should consider whether you understand CFDs before proceeding.

    Tap on OK if you understand CFDs. 

    Enter your email address and password.

    Tap the box that states you accept their Privacy Policy, CFD Terms, Cookie, and Disclosure Notice.

    Choose to Allow Notifications (Push or Email) or tap on Not Now. 

    Trading 212 will send an email to your registered email address. 

    Launch your email and click on the verification link from Trading 212.

    That’s it! You’ve created your Trading 212 account. 

    To proceed you’ll need to undergo their KYC verification process which includes inputting your details (first and last name, residential address, etc.) and submitting identity documents like your International Passport.

    Different Types of Accounts on Trading 212

    Trading 212 supports 3 account types including: 

    Trading 212 Invest, Trading 212 CFD, and Trading 212 ISA.

    • The Trading 212 Invest Account: This account allows you to buy stocks and ETFs. It is a zero-commission account, however, it charges high spreads.

    • Trading 212 CFD: The account allows you to trade long and short with leverage. The broker supports a maximum leverage of 1:30. 

    • Trading 212 ISA: This account allows you to invest tax-free in a zero-commission ISA. The Trading 212 ISA account is only available to residents of the United Kingdom

    It is important to note that while some forex trading platforms provide the option for getting an Islamic (swap-free) trading account, currently Trading 212 does not support the service. 

    The only trading accounts available are as listed above. 

    In addition, the major difference between the Trading 212 CFD account and the Trading 212 Invest account is that with Invest you buy and sell actual Shares as you would on stock exchanges while with CFD you’re simply trading CFDs by speculating with the current market price of CFD based instruments. 

    Other differences include the use of leverage on CFD accounts and their instrument categories.

    Trading 212 Review: Trading Experience

    Through our extensive hands-on analysis, we found that Trading 212 offers a straightforward trading experience for stock trading and ETF trading

    However, it lacks advanced trading tools and you won’t find features like Share transfer for users who want to migrate to Trading 212 from other trading platforms. 

    That said, there is no web app as the broker only supports trading via its mobile app. 

    Trading 212 App non apple store - 1280x720

    Different Platforms Used to Trade

    Trading 212 only supports 1 trading platform: its proprietary Trading 212 platform

    The stock trading and ETF trading platform does not support MetaTrader 4 and MetaTrader 5 or other third-party platforms like the most popular brokers.

    Trading 212 Review: Customer Service

    Trading 212 offers 24/7 customer support via live chat on the trading platform. 

    Customer support is also available via email at info@trading212.com

    Trading 212 also has a Help Center that is well-equipped with detailed information on different aspects of the platform.

    Customer Satisfaction

    Trading 212 offers excellent customer service to users via the available support channels. 

    The mobile app and web trading platform also have a user-friendly interface that gives traders an excellent experience. 

    Trading 212 has a high rating of 4.6 stars on Trustpilot. 

    The mobile app has a 4.1-star rating on the Google Play Store and 4.6 Star on the Apple App Store.

    Does Trading 212 Offer Education?

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    Yes, Trading 212 offers educational resources targeted at beginners and it can be accessed via the Learn Section of their website. It also offers a demo account where beginners can practice trading with virtual funds.

    Is Trading 212 Right for You?

    Trading 212 is right for you if you’re interested in ETF trading and looking for stock exchanges with zero commission.

    Final Thoughts

    Trading 212 is a simple broker with a lot of limitations such as no web trading platform, no advanced trading tools, no support of third-party trading platforms, regional restrictions on the type of account users can open, etc. 

    However, it excels in the number of offered financial instruments.

    Curious about additional CFD broker choices? Dive into our Admirals Review for a detailed exploration.

    FAQ

    Most frequent questions and answers

    Yes, Trading 212 has been in the industry since 2004 and is regulated and authorized by the Financial Conduct Authority (FCA) of the United Kingdom.

    Yes, Trading 212 is a regulated broker.

    Yes, Trading 212 is a real broker authorized and regulated by the Financial Conduct Authority.

    No, you cannot use Trading 212 in the United States.

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