Trading212 Review 2024: Pros and Cons Revealed

Broker	Trading212
Account Minimum	£1, €1, $1
Trading Products	CFD Stocks, ETFs, Forex, Commodities, Indices and more
Fees	Commission, custody, withdrawals, deposits via bank transfers: free
	FX fee: 0.15%
	Deposits via Cards, Google Pay, Apple Pay & other: 0-0.7%
Interests in Uninvested Cash	5.1%
Margin Rates	3.33% (Major currency pairs)
	5% (Minor currency pairs)
App/Platforms	Trading212 App
IRA accounts	❌
Promotions	✅

What Type of Investor Is Trading212 Suitable for?

Trading212 is a generally good choice for beginners- though we are not sure yet if this broker offers demo account for practicing, it features several beginner-friendly conditions.

Firstly, the required starting capital is affordable to most traders- £1, €1, $1. You can deposit the same amount of a hamburger to start a new journey in investment. Moreover, the broker does not set high barriers for profit withdrawals- with minimum only £1, €1, $1, and even without any handling fees for this. Traders can test water with the amount of money they can afford and do not need to worry that the broker will eat up with their small balance.

Furthermore, the commission-free structure reduces trading costs significantly for traders, especially for active traders who make frequent trades. Under such circumstance, beginners can focus more on their strategies and make new tries without worrying extra expenses.

More importantly, the broker offers abundant educational resources for traders to build strong foundations for investment knowledge. Beginners can start with the basic “Investing 101”, which covers essential topics like dollar cost averaging, in-depth guides on reading financial statements, etc.

Trading212 Pros and Cons

Is Trading212 Safe?

Proceeding further with the Trading212 review, here comes this question: Is Trading212 safe? When reviewing Trading212, one of the primary concerns for beginners is the platform's safety and security. This is a question that almost all newcomers to investing prioritize. To address this concern, we will explore it from two crucial aspects: regulations and account protection measures.

Trading212 Regulations

• Trading212 UK Limited is regulated by Financial Conduct Authority in the United Kingdom, with license no. 609146.
• Trading212 Markets Ltd is regulated by Cyprus Securities and Exchange Commission in Cyprus, with a Market Making license numbering at 398/21.

These two regulatory bodies are authoritative in the industry, to some extent guarantees Trading212's stringent compliance to industry standards. When there are disputes, thre will be intermediary reconciliation from these institutions.

Regulated Country	Regulator	Regulated Entity	License Type	License Number
	FCA	Trading212 UK Limited	Market Making (MM)	609146
	CYSEC	Trading212 Markets Ltd	Market Making (MM)	398/21

However, the broker also holds two abnormal licenses, which impair its credibility.

• The Retail Forex License with number 40517 is currently in a revoked status, which means the broker might acted non-compliantly before.
• The Market Making (MM) license with number 290/16 is suspected to be fake clone. The licensed institution is Gobaba FX Cy Ltd, but after our checking, there's no direct or publicly documented connection between the two entities.

Investors who care a lot about regulation and are risk-sensitive should not input large-value funds to this broker.

Regulated Country	Regulator	Regulated Entity	License Type	License Number	Status
	VFSC	Trading212 Global Ltd	Retail Forex License	40517	Revoked
	CYSEC	Gobaba FX Cy Ltd	Market Making (MM)	290/16	Suspicious Clone

Account Protection

The broker holds client cash in segregated accounts at top global banks, seperating clients funds from the company's operation account. Even if Trading212 goes bankrupt, your cash is safe and cannot be used by anyone else.

Additionally, your investments, such as shares, are held with Interactive Brokers (one of the largest and reputable brokers in the world) and are also ring-fenced and segregated from the companys assets.

And the Financial Services Compensation Scheme (FSCS) further protects eligible clients up to £85,000.

In this way, regarding the question “Is Trading212 safe?”, the evidence suggests a resounding positive answer. Trading212 can be deemed a relatively trustworthy and safe brokerage to conduct trading activities, though the two abonormal licenses should not be neglected for those who are prudent.

Trading212 Fees Review

1. Trading Commission: Trading212 offers commission-free trading across all its accounts (Invest, Stock ISA, and CFD). Such structure makes it highly competitive, especially for beginner investors looking for low-cost trading options.
2. Custody Fees: No custody fees are charged for holding assets across all Trading212's accounts, keeping ongoing costs to a minimum.
3. FX Fees:
1. Invest & Stock ISA: An FX fee of 0.15% applies when converting currencies or trading instruments in a different currency from your account. Trading212 uses the live interbank rate with no hidden costs.
2. CFD: A 0.5% FX fee is applied only on the result of the trade for currency conversion.
4. Deposits & Withdrawals:
1. Deposits via Bank Transfer: Free.
2. Deposits via Cards/Google Pay/Apple Pay: Free up to £2,000; thereafter, a 0.7% fee applies.
3. Withdrawals: Free across all accounts.
5. Administrative Fees: No fees for statements or account closure.
6. Transaction Minimums:
1. Min deposit/withdrawal: £1, €1, $1 for Invest and Stock ISA accounts, and £10, €10, $10 for CFD accounts.
2. Min buy/sell order: £1, €1, $1.
7. Government Taxes & Levies:
1. UK Stamp Duty: 0.5% for UK shares.
2. PTM Levy: £1 for trades above £10,000 in UK shares.
3. French Financial Transaction Tax: 0.3% on specific French shares.
4. US FINRA & SEC fees: $0.000166 per share and 0.00229% apply respectively when selling US shares.
8. Card Fees:
1. Virtual card: Free.
2. Physical card: £4.95 one-time fee.
3. ATM withdrawals: Free up to £400/month, then 1% for additional withdrawals.

There are withdrawal and transaction limits when using Trading212 card.

Limit Type	Operation	Limit
ATM	Single ATM Withdrawal	£340
	Daily ATM Withdrawal	£1,800
	Monthly ATM Withdrawal	£9,000
Transaction	Single Transaction	£9,000
	Daily Transaction	£9,000
	Monthly Transaction	£54,000

9. Overnight Interest (CFD): Holding CFD positions past 22:00 GMT incurs overnight interest, which varies by instrument. The fee can be positive or negative, depending on the direction of the trade and the product. This can raise the cost of long-term CFD trading.

Overall, Trading212 is outstanding for its transparency and low fees, especially with commission-free trading, minimal FX conversion costs, and no custody fees. This makes it an attractive choice for both beginner and experienced investors.

Trading212 Interest Rates Review

• Interest on Uninvested Cash: Trading212 pays competitive interest on uninvested cash balances, with rates varying by currency. For example, GBP earns 5.2% AER, USD earns 5.1% AER, and EUR earns 4.2% AER.

Interest on uninvested cash is earned and paid daily, suitable for those who are looking to gain interest while waiting for investment opportunities.

• Share Lending Interest: Trading212 offers share lending, allowing users to earn interest on their lent shares. The rates are variable and based on market demand.

Trading212 Margin Rates Review

Trading212 offers competitive margin rates for its CFD (Contract for Difference) trading platform, enabling investors to trade on leverage across a wide range of instruments.

Asset Type	Margin Rate	Leverage
Major Currency Pairs	3.33%	1:30
Minor Currency Pairs	5%	1:20
Gold	5%	1:20
Other Commodities	10%	1:10
Stocks and ETFs	20%	1:5
Major Indices	5%	1:20
Minor Indices	10%	1:10

Overall, trading212 is a flexible platform for trading CFDs due to its variable margin rates, which range from 3.33% for key currency pairs to 20% for stocks and ETFs. Leverage levels are in line with market norms, giving traders plenty of opportunities to control larger holdings without needing a substantial amount of capital.

Trading212 Account Review

Trading212 offers three account types with different features for different client groups.

Trading212 Invest Account

Invest Account is multi-Currency Supported. You are able to hold and trade in multiple currencies including GBP, USD, EUR, CHF, DKK, NOK, PLN, SEK, CZK, RON, BGN, and HUF to avoid frequent FX fees. Fund conversions at the live interbank are charged with a 0.15% FX fee.

With this account, you can also earn interest on cash balances across multiple currencies, with attractive rates such as 5.2% AER for GBP.

Trading212 ISA Account

Unlike the Invest account, the ISA does not support multiple currencies and operates in the default currency chosen upon account creation.

Like the Invest account, it has no trading commission or custody fee, but with the added benefit of tax-efficient savings under the ISA framework.

Trading212 CFD Account

You can trade CFDs with this account with dynamic spreads and leverages ranging from 1:5 to 1:30 across different assets. Currency conversion within CFDs comes with a 0.5% FX fee applied to trade results.

All these accounts allow currency conversions 24/7 and you can select base currency for your account during the account setup process, and that will be how your balances and reports are displayed.

Trading212 Platform Review

Trading212's platform offers a proprietary, mobile-first trading experience that is designed for users of all levels. Unlike more advanced and popular trading platforms like MT4 or MT5, Trading212 provides its own trading app available on iOS and Android devices.

• Key Features:

1. Dynamic Watchlists: Users can create custom watchlists to track their favorite instruments. These lists are easy to set up, and the ability to duplicate or follow existing dynamic watchlists adds flexibility.

1. Pies and Filters: The app allows users to separate manual investments from those in “Pies” through the filtering option. This provides better portfolio management.

1. Real-Time Data: The platform offers real-time market data and price alerts, allowing users to stay updated with market fluctuations.

✅Where Trading212 Mobile App Shines:

1. Accessibility: Available as a mobile app on both Google Play and the App Store.
2. Customizability: Watchlists can be tailored and modified based on personal preferences.

❌Where Trading210 Mobile App Falls Short:

1. Limited Advanced Features: Unlike platforms like MT4 and MT5, Trading212 lacks advanced tools like automated trading, extensive charting, or customizable indicators.

Therefore, Trading212's platform is ideal for beginner and intermediate traders looking for ease of use, simplicity, and cost-effectiveness. However, advanced traders may find the lack of more sophisticated tools limiting.

Compare to Similar Brokerages

Logo
Broker	Trading212	Webull	Robinhood	Fidelity
Regulators	FCA, CYSEC	FINRA, AISC, FSA, SFC, MAS	FINRA	FSA
Product offerings	CFD Stocks, ETFs, Forex, Commodities, Indices	Stocks, Options, Index Options, Futures, ETFs, OTC, Margin, Fractional Shares, Cryptos	Crypto, Options, Retirement, ETFs	Mutual Funds, Crypto, Direct Indexing, Fixed Income, Bonds & CDs, ETFs, Options
Account Minimum	£/€/$1	$0	$1	$10
Promotions	✅	✅	✅	❌

Frequently Asked Questions (FAQs)

Is Trading212 good for beginners?

Yes, Trading212 allows beginners to start investment with affordable starting capital and offers rich educational resources for beginners to get familiar with the investment world.

How do Trading212's commissions compare to other brokers?

Trading212 does not charge trading commissions, which is quite competitive comparing to most brokers since such structure reduces trading costs significantly for traders.

Does Trading212 offer fractional shares?

Yes, the broker offers 24/5 trading for fractional shares. Fractional shares allow you to invest in any amount, regardless of the stock price.

Is Trading212 a safe and reliable broker?

We can say Trading212 is safe and reliable, in view of its decent regulatory status and reliable money protection measures.

For more professional reviews on forex brokers, please visit WikiFX (https://www.wikifx.com).