Is Trading 212 Trustworthy?

Trading 212 is an online trading platform that allows investors to buy and sell a variety of financial instruments, including stocks, bonds, currencies, and commodities. The platform has gained popularity in recent years due to its user-friendly interface, low fees, and wide range of investment options. However, with so many online trading platforms available, investors are often left wondering whether Trading 212 is trustworthy and safe to use.

To answer this question, it’s important to consider several factors, including the platform’s safety and regulation, user experience, and fees. Trading 212 is regulated by the Financial Conduct Authority (FCA) in the UK, which is one of the most respected financial regulators in the world. This means that the platform is subject to strict rules and regulations designed to protect investors and ensure that they are treated fairly.

Investors should also consider the platform’s user experience, which can have a significant impact on their ability to make informed investment decisions. Trading 212 offers a range of tools and features designed to help investors research and analyze the markets, including real-time news feeds, technical analysis tools, and charting software. Additionally, the platform offers a range of educational resources and support to help investors of all levels improve their trading skills.

Key Takeaways

  • Trading 212 is a regulated online trading platform that offers a wide range of investment options.
  • The platform is user-friendly and offers a range of tools and features to help investors make informed investment decisions.
  • Trading 212 is regulated by the FCA in the UK, which ensures that the platform is safe and trustworthy to use.

Understanding Trading 212

Trading 212 is a London-based brokerage platform that was founded in 2006. It aims to democratize trading by making it accessible to the masses. The platform offers a web trading platform and a mobile app that allows users to trade in a variety of assets, including stocks, ETFs, forex, and cryptocurrencies.

The interface of Trading 212 is clean, simple, and easy to use. It offers a safe two-step login and a good search function that makes it easy for users to find the assets they are looking for. However, the platform is not customizable.

The company is co-founded by Ivan Ashminov, who is also the co-founder of the Bulgarian software company Telerik. Trading 212 is regulated by the Financial Conduct Authority (FCA) and the Bulgarian Financial Supervision Commission (FSC).

Overall, Trading 212 is a robust and trustworthy trading platform for beginners who are just getting into trading. It offers easy-to-use tools and resources that can help users learn about trading strategies, such as dollar cost averaging and market timing.

Types of Accounts

Trading 212 offers a variety of account types for UK residents. These accounts are designed to cater to the needs of different types of investors. Here’s a breakdown of the different account types:

Trading 212 Invest Account

The Trading 212 Invest account is a standard investment account. With this account, investors can buy and sell stocks, ETFs, and other securities. There are no commissions or fees for buying or selling securities. Instead, Trading 212 makes money by charging a small spread on the bid-ask price.

Trading 212 CFD Account

The Trading 212 CFD account is a contract for difference account. With this account, investors can trade CFDs on a variety of underlying assets, such as stocks, indices, commodities, and currencies. CFDs allow investors to speculate on price movements without actually owning the underlying asset. However, CFD trading carries a higher level of risk than traditional investing.

Trading 212 ISA Account

The Trading 212 ISA account is an individual savings account that allows investors to save tax-free. With this account, investors can buy and sell stocks, ETFs, and other securities without paying any capital gains tax or income tax on their profits. The Trading 212 ISA account is available to UK residents only.

Demo Account

Trading 212 also offers a demo account, which allows investors to practice trading with virtual money. The demo account is a great way for new investors to get familiar with the platform and test their trading strategies without risking any real money.

Account Types Summary

Account Type Description
Trading 212 Invest Standard investment account
Trading 212 CFD Contract for difference account
Trading 212 ISA Tax-free individual savings account
Demo Account Virtual trading account

Overall, Trading 212 offers a good selection of account types that cater to different types of investors. Whether you’re a beginner or an experienced trader, there’s an account type that’s right for you. However, it’s important to remember that all investments carry a level of risk, and it’s important to do your research before investing your money.

Investment and Trading Options

Trading 212 offers a range of investment and trading options to its users. The platform allows users to trade in real stocks, forex, commodities, indices, options, and cryptocurrencies, among others. The platform also offers CFDs (Contracts for Difference), which allow users to speculate on the rise or fall of an asset’s price without actually owning it.

Trading 212’s investment options include stocks, ETFs (Exchange Traded Funds), and bonds. Users can also invest in fractional shares, which allows them to buy a portion of a stock rather than the whole share. This is useful for those who want to invest in expensive stocks, but do not have the funds to purchase a whole share.

The platform’s trading options are also diverse, with a range of trading instruments available. Users can trade in forex, commodities, indices, options, and cryptocurrencies. Trading 212 also offers currency conversion, which allows users to trade in their preferred currency.

Overall, Trading 212’s investment and trading options are extensive, providing users with a range of choices to suit their needs. The platform’s fractional shares option is particularly useful for those who want to invest in expensive stocks but do not have the funds to purchase a whole share. Additionally, the platform’s currency conversion feature allows users to trade in their preferred currency, making it easier for them to manage their investments.

Fees and Charges

One of the most significant advantages of Trading 212 is its zero-commission policy, which means that there are no trading fees charged for buying or selling shares. This policy applies to all shares, regardless of the amount or frequency of trades. However, Trading 212 does charge currency conversion fees for non-GBP accounts, which can be up to 0.15%.

Trading 212 also offers a range of CFD trading services, including forex trading. While there are no trading fees for CFD trading, there are overnight holding fees, which are charged for positions held overnight. These fees vary depending on the type of CFD and the amount of leverage used.

In addition to the currency conversion and overnight holding fees, Trading 212 also charges an inactivity fee of £14.90 per month for accounts that have been inactive for six months or more. This fee is charged until the account balance reaches zero.

Withdrawals from Trading 212 are free of charge for bank transfers, but card payments may incur additional fees charged by card issuers. It is also important to note that Trading 212 does not charge any withdrawal fees, but there may be foreign exchange fees charged by the recipient bank.

Overall, Trading 212’s fee structure is transparent and competitive, with no hidden fees or charges. The zero-commission policy for share trading is a significant advantage, although it is important to be aware of the currency conversion fees for non-GBP accounts and the inactivity fee for inactive accounts.

For the Beginners

Trading 212 is an excellent platform for beginner investors and traders. The user-friendly interface makes it easy for beginners to navigate through the platform and execute trades with ease. The platform also offers demo accounts, which is an excellent feature for beginners who want to practice trading without risking any real money.

One of the most significant advantages of Trading 212 for beginner investors is the ability to invest in fractional shares. This feature allows investors to invest in stocks that they may not have been able to afford otherwise. Additionally, Trading 212 offers a wide range of investment options, including stocks, ETFs, and CFDs.

For beginner traders, Trading 212 offers a range of tools and features that can be used to make informed trading decisions. The platform provides access to real-time market data, news, and analysis, which can be used to identify trading opportunities. Additionally, Trading 212 offers a range of order types, including limit orders, stop-loss orders, and trailing stop orders, which can be used to manage risk.

Overall, Trading 212 is an excellent platform for beginner investors and traders. The platform is user-friendly, offers demo accounts, and provides a range of tools and features that can be used to make informed trading decisions. Whether you are a beginner investor or trader, Trading 212 is an excellent platform to consider.

Safety and Regulation

When it comes to trading, safety and regulation are key considerations to ensure a trustworthy platform. Trading 212 is regulated by the Financial Conduct Authority (FCA) in the UK, which is one of the most reputable financial regulatory bodies globally. The FCA is known for its stringent standards and commitment to maintaining a safe trading environment.

Trading 212 is also MiFID II-compliant and licensed by three top-tier regulators in Europe, which further demonstrates its commitment to providing a safe trading environment. The platform is also a member of the Financial Services Compensation Scheme (FSCS), which means that clients are protected up to £85,000 in case of insolvency or other financial difficulties.

In addition, Trading 212 offers negative balance protection to its clients, which means that clients cannot lose more than their account balance. This is an important feature that helps to mitigate risk and ensure that clients are protected from significant losses.

Overall, Trading 212’s commitment to regulation and safety measures makes it a trustworthy platform for traders looking to invest in a variety of financial instruments.

User Experience

Trading 212 has a user-friendly interface, making it easy for users to navigate the platform. Users can access a wide range of features such as currency conversion, pies, auto-invest, demo accounts, CFDs, and interest on uninvested money. The platform also has a mobile app that is available on both iOS and Android devices, allowing users to trade on-the-go.

The customer service team at Trading 212 is responsive and helpful. Users can contact the team through email or live chat, and they typically receive a response within a few hours. The platform also has a comprehensive FAQ section that covers a wide range of topics, making it easy for users to find answers to their questions.

Overall, Trading 212 has received positive reviews from users. Many users have praised the platform’s ease of use, low fees, and wide range of features. However, some users have reported issues with the platform’s customer support, citing slow response times and unhelpful agents. Despite these issues, Trading 212 remains a popular choice among traders and investors, with many users reporting a positive experience on the platform.

Trading Tools and Features

Trading 212 offers a range of features and tools to help traders navigate the markets and make informed investment decisions. One of the most notable features is the availability of a demo account, which allows traders to practice trading with virtual money before committing to real funds. This is especially useful for novice traders who are just starting in the world of investing.

Another feature that Trading 212 offers is the ability to invest in fractional shares. This means that traders can invest in a portion of a share, rather than having to buy a whole share. This can be particularly beneficial for those who want to invest in expensive stocks but do not have the funds to purchase a full share.

Trading 212 also offers a range of order types, including stop loss and limit orders. These can help traders manage their risk and limit potential losses. Additionally, the platform offers access to a range of underlying assets, including stocks, ETFs, and currencies.

Traders can also take advantage of leverage when trading with Trading 212. Leverage allows traders to increase their exposure to the market without having to put up the full value of the trade. However, it is important to note that leverage can also increase the risk of losses.

Trading 212 also offers interest on uninvested cash, which can be a valuable feature for those who want to earn a return on their cash holdings. Additionally, the platform offers share lending, which allows traders to earn interest on shares that they lend out.

Overall, Trading 212 offers a range of features and tools that can help traders make informed investment decisions. However, it is important to note that spread and bid-ask price movements can impact the profitability of trades, and traders should always carefully consider their investment decisions before committing funds.

Comparison with Other Platforms

When it comes to choosing an online trading platform, it’s important to consider the alternatives and compare their features. Here’s how Trading 212 stacks up against some of its competitors.

eToro

eToro is a popular social trading platform that allows users to copy the trades of experienced traders. While Trading 212 doesn’t offer social trading, it does have a wider range of instruments available for trading, including commodities, futures, and more.

Compare

BrokerChooser, a reputable comparison site, rates Trading 212 highly for its user-friendly platform and competitive fees. It’s worth noting that Trading 212 is regulated by the FCA in the UK, which provides an extra layer of protection for investors.

Trustpilot

On Trustpilot, Trading 212 has a rating of 4.4 out of 5 stars, based on over 16,000 reviews. While there are some negative reviews, many users praise the platform for its ease of use and low fees.

Overall

Overall, while Trading 212 may not have all the bells and whistles of some of its competitors, it offers a solid trading experience with a wide range of instruments and competitive fees. As with any investment, it’s important to do your research and make an informed decision before investing your money.

Risks and Challenges

Trading 212, like any other investment platform, has its fair share of risks and challenges. Clients can lose money when trading with Trading 212, and this is not a unique problem to this platform. The following are some of the risks and challenges associated with Trading 212:

1. Market risks

Trading 212 is subject to market risks, which means that the value of the investments can go up or down depending on market conditions. This risk is inherent in any investment, and clients should be aware of it before investing their money.

2. Margin trading

Trading 212 offers margin trading, which enables clients to trade with more money than they have in their accounts. While this can amplify profits, it can also amplify losses. Clients should be aware of the risks associated with margin trading before engaging in it.

3. Losing money

Clients can lose money when trading with Trading 212. This is a risk that is inherent in any investment, and clients should only invest money that they can afford to lose.

It is important to note that Trading 212 has taken measures to mitigate these risks and challenges. For example, Trading 212 is regulated by the FCA in the UK, which ensures that the platform adheres to strict regulatory standards. Trading 212 also provides clients with tools such as stop-loss orders, which can help limit losses.

Overall, clients should be aware of the risks and challenges associated with Trading 212 before investing their money. It is important to do thorough research and seek professional advice before making any investment decisions.

Conclusion

In conclusion, Trading 212 is a reliable and trustworthy investment platform with a range of useful features. While there have been some controversies and concerns in the past, the platform has taken steps to address these issues and improve transparency.

One of the main advantages of Trading 212 is its user-friendly interface and range of investment options, including stocks, ETFs, and CFDs. The platform also offers a demo account and auto-invest features, making it a great choice for beginner investors.

On the downside, Trading 212 does charge fees for certain services, such as currency conversion and CFD trading. However, these fees are clearly stated on the platform and are in line with industry standards.

Overall, Trading 212 is a solid choice for investors looking for a reliable and transparent investment platform. While there are some drawbacks, the platform’s user-friendly interface and range of investment options make it a great choice for both novice and experienced investors alike.

Frequently Asked Questions

What are some of the top trading platforms in the UAE?

The UAE has a growing market for online trading platforms, and traders have a wide range of options to choose from. Some of the top trading platforms in the UAE include eToro, IG, Saxo Bank, and Trading 212.

Is Trading 212 a broker that guarantees investments?

Trading 212 is a regulated broker that offers a range of investment products, including CFDs and equities. It is important to note that no broker can guarantee investments, and all investments carry a level of risk. Trading 212 provides tools and resources to help traders make informed investment decisions.

Is Trading 212 a safe place for long-term investing?

Trading 212 is a regulated broker that offers a range of investment products. The broker has a clean track record and is regulated by the top-tier FCA in the UK. However, it is important to note that all investments carry a level of risk and traders should carefully consider their investment goals and risk tolerance before making any investment decisions.

Is Trading 212 a legitimate broker?

Trading 212 is a legitimate broker that is regulated by the FCA in the UK. The broker has been in operation since 2004 and has a large user base. Trading 212 has a clean track record and has not been involved in any major regulatory incidents or fines.

Are Trading 212’s users satisfied according to Trustpilot?

According to Trustpilot, Trading 212 has a rating of 4.6 out of 5 stars based on over 23,000 reviews. The majority of reviews are positive, with users praising the platform’s ease of use and range of investment products.

Is Trading 212 a good option for beginners?

Trading 212 offers a range of investment products and features that are suitable for beginners. The platform has a user-friendly interface and provides educational resources to help traders learn about investing. Additionally, Trading 212 offers a practice mode that allows users to trade with virtual funds before investing real money.


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