Trading and investing can appear to many individuals to be an incomprehensible jumble of jargon and difficult-to-understand issues.
That is one of the reasons why many people are hesitant to invest. But what if we told you that trading and investing in stocks didn’t have to be that complicated and difficult?
This is where Trading 212 enters the picture.
Trading 212 has a variety of features to assist newcomers in learning about trading and making sound financial decisions.
So now we’ll take a look at Trading 212 and give it a thorough examination. We’ll go over its features, benefits, drawbacks, and any costs that may apply.
Then we’ll decide whether Trading 212 is worth checking out.
Overview of Trading 212
Trading 212, situated in London, is an internet trading platform. The organisation, which was launched in 2006, allows traders to trade forex, currencies, gold, commodities, cryptocurrency, stocks, and other asset classes.
It received its operating licence in the United Kingdom in 2013 and is currently regulated by the Financial Conduct Authority of England and Wales (FCA).
The business is based on a freemium concept. The fundamental services are free to use, but any additional features or services must be paid for. The application is tailored for use in an online trading environment, with a particular focus on mobile trading.
You may make an account and peruse their listings on your smartphone, no matter where you are.
Trading 212 provides a DIY platform with over 1,800 trading instruments. While classic asset classes such as stocks and bonds are available, Trading 212 ups the ante by allowing a variety of additional unique assets such as currencies, commodities, and more.
One of the platform’s distinguishing qualities is the wide range of assets available.
It was also one of the first brokerages in the UK to transition to a commission-free trading strategy for regular day-trades. The firm has approximately 2 million downloads and has been ranked the No.1 trading platform in the UL and Germany.
Trading 212 has evolved into a solid brokerage that has adapted and withstood various market swings, most notably the financial crisis of 2008-2009, because it has stood the test of time and has been around since 2006.
Stocks and ETFs from some of the world’s most popular stock exchanges, including the London Stock Exchange, NYSE, NASDAQ, and Euronext, are available on Trading 212. They also provide a full-featured CFD trading platform that is designed specifically for beginners due to its ease of use.
You can invest without paying a commission in over 4,000 equities and ETFs. Trading 212 also supports fractional trading, allowing you to begin with extremely tiny sums.
The majority of the stocks backed by Trading 212 are based in the United States or the United Kingdom, and include financial heavyweights like Apple, Facebook, Twitter, Amazon, HSBC, British American Tobacco, and others.
Financial manoeuvres such as short-trading and leveraged selling are also possible with Trading 212. They also allow dividend reinvestment, which means that any dividend profits are reinvested in more equities.
Trading 212 lets UK investors trade tax-free up to a specific amount using ISA accounts.
What Is Trading 212 and How Does It Work?
Trading 212 functions similarly to most other DIY investing websites. After you register, create an account, and link a payment method to your account, you can begin trading.
It offers a straightforward, well-organized style with information about your stocks prominently displayed in the centre. All of the instruments and trading signals you can set up, as well as your pending orders and watch list, are located on the left-hand side.
The comprehensive graph instrument is the focal point of the screen and the major attraction. You can switch between your assets using this graph.
The graph displays a time-series of the asset’s performance, and you can include whatever measure you desire, such as a moving average. You can change the time period for the asset’s performance from today to several years ago.
Finally, on the right-hand side, there are videos and instructions on how to trade. Various reports can also be found on the right-hand side, beneath the video bar.
The trading interface is decent in general.
It contains a wealth of information and useful resources, ensuring that you always know what you’re looking at. Because there is so much information, the interface may appear crowded to some.
It is not as slick or as attractive as some other trading platforms, but it delivers excellent results in terms of information.
Trading 212 does not charge commissions on ordinary trades, as previously stated. You can make as many normal deals as you like without paying anything. They do, however, charge more for non-free services, which are clearly stated.
How to Create a Trading 212 Account
Trading 212 provides a demo account for total beginners to test out the platform.
The demo is essentially a simulation that provides you a general understanding of how the platform operates. The practise account can be used on both a desktop and a mobile device.
If you enjoy the demo and wish to create an account, you will be asked to enter some personal information in order to authenticate your identity. A copy of your driver’s licence, national ID, or a scanned copy of your passport will be required as proof of identity.
You’ll also need to show evidence of address in the form of a utility bill, bank statement, or other official document that shows your current residence. These identity verification standards are in place to prevent money laundering.
After that, you’ll have to respond to a brief set of questions. These questions are designed to help the company determine how experienced a trader you are and whether cooperating with you is a low-risk proposition.
In fact, if the corporation determines that partnering with you is too hazardous, you may be removed from the platform. In total, the application procedure takes roughly 10-20 minutes.
Once you’ve been accepted, you can choose between three different account kinds. Trading 212 offers a traditional trading account (dubbed Trading 212 Invest), as well as an individual savings account (ISA) and a contract-for-differences (CFD) account.
A CFD account is a popular alternative for currency and commodity traders since it allows you to be paid depending on the difference between the starting and closing deals. When trading CFDs, you can make a lot of money.
You can begin searching stocks and building your portfolio once you’ve chosen your account. Anyone can utilise Trading 212 Invest, which is primarily designed for investing and trading in equities. ISA accounts are only available to traders based in the United Kingdom, however their CFD accounts are open to all international traders.
212 Asset Classes to Trade
Trading 212, as previously said, offers over 1,800 assets from over seven worldwide stock exchanges. We’ll go through the various asset types you can trade in this section.
Investing in stocks
Stocks and individual shares make up the majority of Trading 212’s assets. Some of the world’s largest corporations have listings on Trading 212. To establish a properly diversified portfolio, you can pick and select which stocks you want to invest in.
This adaptability is ideal for an investment app that is primarily focused on mobile devices. Many investment apps for mobile trading offer pre-built portfolios that you can’t fully adjust. Trading 212 allows you complete freedom to choose whatever you desire.
ETFs Trading 212 also has hundreds of ETFs available, including some of the most popular on the market. If you need to diversify your portfolio, ETFs are an excellent option because they cover a wide range of sectors and businesses.
For example, the iShares Core Global Aggregate Bond, which comprises shares and bonds from over 500 businesses, is one of the most popular ETFs on the site.
Trading 212 also offers a large range of cryptocurrencies, including well-known names like bitcoin, Ethereum, Monero, Litecoin, and others. Cryptocurrencies are rather unusual among online brokers, thus Trading 212’s inclusion of them is a welcome addition.
Cryptocurrencies may be traded in the same way that stocks can. Many of these cryptos can also be traded as a currency pair with common currencies like the USD, CAD, CHF, EUR, GBP, and others. Cryptocurrencies are typically high-risk investments.
Commodities Trading 212 also supports commodities CDF trading. Popular commodities such as gold, silver, crude oil, natural gas, and copper fall into this category. They also allow for more unusual commodities like sugar, coffee, chocolate, and cotton, to name a few.
Overall, there are 11 commodity classes in which you can invest, as well as commodities and FX pairs on which you can speculate. Commodities come with a high level of risk.
On Trading 212, you can trade indices, which are a good way to generate money through speculation.
Each index, including significant ones like the S&P 500 and the FTSE 100, has hundreds of individual companies. Trading 212 offers more than 30 different indices, including some that are less liquid in Russia, South Korea, and the Netherlands. Investors now have access to emerging global markets as a result of its inclusion.
Foreign exchange (forex)
Finally, Trading 212 allows customers to trade in a wide choice of forex currencies. Trading 212 may not be the greatest forex broker on the market, but they do provide a large number of currency pairs, including some less liquid currencies from Turkey and South Africa.
There are over 200 forex pairs to trade in total, giving you a reasonably broad range of options in the currency market.
Training 212 Features
Trading 212 has a big library of instructional resources and articles for first-time investors because it is built for them. Articles and videos address a wide range of investing subjects, as well as specifics about certain industries or sectors.
The webinars and trading guidelines are two features of the educational library that we particularly enjoy. The nicest aspect about the library is that you don’t need a Trading 212 account to use it. Even if you are not a Trading 212 client, you can explore the library for free.
212 Trading To begin investing with Invest Trading, you simply need to deposit £1. You are not required to maintain a minimum deposit or amount. Although £1 may appear to be far too small to invest in anything, Trading 212 offers fractional share investing, allowing you to get started with as little as £1.
You can use Skrill, Dotpay, Giropay, Apple/Google Pay, and PayPal to link a variety of payment methods, including a typical bank account, credit cards, and debit cards, as well as additional choices like Skrill, Dotpay, Giropay, Apple/Google Pay, and PayPal.
CFD accounts, on the other hand, require a minimum investment of £10 to begin. You do not, however, need to maintain a minimum account balance. Withdrawals and deposits are processed within a few business days. There is no fee for using a debit card to make a purchase.
Promotions and Bonuses
Trading 212 does not appear to be providing any unique benefits at the moment, though they have in the past. A £50 welcome incentive for placing your initial deposit, as well as reduced or zero commission trading on certain sorts of transactions, have all been offered in the past.
However, in order to prevent overtrading, the EU has modified some regulations that limit the types of bonuses brokerages can give.
Trading 212 offers a variety of trading tools to assist you in evaluating investments. For example, they feature a real-time economic calendar and technical analysis tools for your charts.
A trading forum where you can talk to other investors about tips/strategies and a FAQ section for common concerns are available in addition to the educational materials listed before.
Is Trading 212 a safe place to put my money?
Trading 212 is a trading firm based in England and Wales that is regulated by the Financial Conduct Authority (FCA). It is also regulated by financial agencies in a number of other European nations. On Trading 212’s website, you may find information regarding these restrictions, including registration numbers.
Trading 212 additionally keeps your cash separate from the company, ensuring that they are safe. Creditors will not be able to come for your money if the company goes bankrupt.
Your money are also protected by the Financial Services Compensation Scheme (FSCS), which guarantees deposits up to £85,000, and the Bulgarian Investors Compensation Fund (ICF), which guarantees deposits up to 90% with a £20,000 upper limit.
So, with Trading 212, your investments are completely safe, or at least as safe as they would be with any other brokerage firm. They have a good track record of making money and there is little to no chance of losing money.
212 Fees for Trading
Trading 212’s fee structure is fairly open. They do not impose any trading fees for normal stock trades. They don’t charge any fees for withdrawals or deposits. Trading 212, surprisingly, does not charge for currency conversions.
With CFD accounts, things are a little different. There are no deposit or withdrawal fees with CFD accounts, but there is a 0.5 percent currency conversion cost. Stocks, commodities, and indexes all have margin requirements.
Finally, there are no trading costs with an ISA account. They also have a £1 minimum deposit requirement. They don’t charge a fee for idleness. Additionally, there are no fees associated with bank transfers.
So, how does Trading 212 make money if they don’t collect any fees?
SWAP rates are how they make money. SWAP rates vary by product, and they are applied to your account balance in bulk once per day.
What Do Others Have to Say About Trading 212?
Trading 212 gets a lot of great feedback.
Trading 212 has a 4.4 out of 5 rating on Trustpilot, based on over 6,000 reviews. The vast majority of reviewers mention that the site is really simple to use and that it has aided them in gaining some investing experience.
Many reviews also mentioned how good the company’s customer service is. Several people also mentioned how simple the mobile app UI is to use. Although a few evaluations were critical, the most of them sounded like they were written by people who just didn’t understand how investment worked.
Pros and Cons of Trading 212
- Platform that is easy to use and has an excellent mobile experience.
- There is no minimum deposit and a wide selection of asset types to choose from.
- You have complete control over how your portfolio is designed.
- There are hundreds of currency pairs in foreign exchange.
- There are numerous instructional materials and training videos available.
- On routine trades, there are no fees.
- There are no fees for withdrawals or deposits.
- Excellent client service and support
- Brokerage, CFDs, and ISAs are all examples of financial services.
- Registration takes a long time.
- No short-trading on equities can be denied by the platform.
- There isn’t a live chat option.
- Final Thoughts
- So, do we think Trading 212 is a good investment? Without a doubt.
Trading 212 is a great place to start if you’re a novice investor looking to learn how to invest. They offer a diverse array of asset types, and you have complete control over your portfolio.
Trading 212 also offers specialist accounts for more experienced investors, as well as the option to open an Individual Savings Account (ISA). For certain investing themes, there is a big educational library with dozens of videos, articles, and webinars.