Having been originally founded in 2004 in Bulgaria, Trading 212 really made its mark when it entered the UK market in 2016. Having started out as a Forex trading app, in 2017 it announced its zero commission share trading function, the critical point that enabled it to reach the levels of success that it has.
In addition to its zero-cost commissions, it boasts:
Zero fee stocks and shares ISA, specific to the Trading 212 ISA account, which is a feature most other platforms don’t offer
Fractional shares, that allow you to buy smaller and more affordable shares of stocks – great for new traders with smaller budgets
A wide range of payment options, including third party services like Paypal and Apple Pay
Live customer support chat that can answer your questions 24/7
Unlimited Instant trades
2500+ trading instruments
No foreign exchange fees, wavering conversion rates for its users
Trading 212 Overview
|💼 Provider Type:||CFD & Stock Broker|
|💸 Minimum Deposit:||£10 for the CFD, and £1 for the ISA and Invest|
|💰 Trading Fees:||None|
|💰 Deposit Fees:||Varied|
|💰 Withdrawal Fees:||None|
|💰 Management Fees:||Varied|
|⌛ Withdrawal Timeframe:||3 business days|
|#️⃣ Number of Cryptocurrencies Supported:||0|
|#️⃣ Number of Crypto Pairs Supported:||0|
|💱 Top supported Cryptocurrencies:||0|
|📱 Native Mobile App:||Yes|
|🖥️ Free Demo Account:||Yes|
|🎧 Customer Support:||Live chat, Phone support (UK only)|
|✅ Verification required:||Yes|
|📈 CFD Available||Yes|
|📊 Software:||Website, web app, mobile app|
|⚽ Social Trading:||Yes|
|✂️ Copy Trading:||Yes|
|👮♂️ Regulators||UK Financial Conduct Authority (FCA), Financial Supervision Commission (FDC)|
Pros and Cons of Using Trading 212
Trading 212 is great for accessibility and value-for-money on commissions; but this is balanced with limited product availability, and limited funding value for bigger traders.
Trading 212 Cryptocurrencies and Trading Options
What cryptocurrencies can you trade on Trading 212?
As of November 2020, Trading 212 does not support the sale of any cryptocurrency assets.
Following the Financial Conduct Authorities statement on the prohibition of investment products that reference cryptocurrencies, Trading 212 liquidated all user positions and suspended trading of such assets with immediate effect.
Trading 212 suggested it was becoming almost impossible to hedge crypto exposure. Their response was to suspend it to ensure the platform’s integrity.
Different Trading Options Offered by Trading 212
As a broker, Trading 212 offers three core account options that affect your available trading options:
CFDs: Contracts For Difference are available for forex, commodities, stocks and indices. CFDs are only offered by brokers; essentially when you buy an asset you are actually purchasing a contract with the brokerage itself that guarantees a return if the asset value increases, and a loss if the asset value decreases.
Real stocks and exchange-traded EFTs: the “invest account” gives you access to real stocks and EFTs (exchange traded funds). There are over 3000 on offer, and can be purchased from as little as £1.
ISA: the ISA account gives users the ability to trade tax-free, and for zero commission. You can trade forex, commodities, stocks, EFTs, and indices.
Trading 212 does not support cryptocurrencies, options, bonds, or futures.
Can I Trade With Leverage on Trading 212?
Yes. Although, the amount to which you can leverage will depend on which account you hold. A standard account will offer you up to 1:30, but this can rise as high as 1:500 if you have a professional account.
Cryptocurrency CFDs and leverage are no longer available.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What Are the Spreads?
Spreads are the primary way that Trading 212 makes money, and how it is able to offer zero commission trading to its users. Spread costs are the small amount of money between a price to buy and a price to sell, or the “bid” and “ask” prices.
On average, Trading 212 offers a spread of ‘average cost’ for S&P 500 CFDs (1.9 points), and a FTSE spread of 1.3 points.
The exact spreads can be difficult to calculate as Trading 212’s spread costs are categorized as a floating spread fee. This means it depends on market conditions, so it is always best that you check the live rates.
Fees, Limits, and Payment Options on Trading 212
What Are the Deposit and Withdrawal Fees, Limits, and Speeds?
There is a wide range of deposit/withdrawal methods available with Trading 212. They are much cheaper than most of its competitors, due to the zero fee model, and for those depositing less than £2000 Trading 212 is certainly going to be one of the cheapest options on the market.
Trading 212 offers a range of different deposit methods, but the availability of these payments may vary depending on your location. Those available are:
Instant Bank Transfer
There are no deposit fees for bank transfers and instant bank transfers. However, all other methods will incur a 0.7% fee for deposits greater than £2000.
In regards to speed, bank transfers can take several days, whereas payment with a credit or debit card would be instant.
The minimum deposit fluctuates depending on which account you are using; £10 for the CFD, and £1 for the ISA and Invest.
You can withdraw funds using the same methods as deposits.
Again, limits depend on which account you’re using; £10 for CFD, and £1 for the ISA and Invest. But there are zero fees on these withdrawals!
The speed of transaction again depends on the method you choose. There will be a minimum of three days to wait as Trading 212 takes this long to verify its withdrawals. Following this, bank transfers/credit and debit cards/Apple Pay/Google Pay can take a further three days; and PayPal and Skrill takes around 15 minutes.
How Much Are Trading 212’s Fees and Commissions?
Trading 212 offers zero commission fees on trades, deposits, withdrawals and currency conversion.
While this is quite rare in the industry, and certainly is an attractive package, there are certain areas regarding fees that you must be aware of:
Spread costs: This is the cost between the “bid” and “ask” prices; Trading 212 makes its money from these costs and they are always subject to change depending on market conditions.
Overnight fees: Another common revenue stream for brokers; depending on what the asset is, Trading 212 will take a fee simply for you holding your asset overnight. Again, this is because this platform is predominantly for day-trading.
Inactivity fee: Depending on the asset in question, there can be charges if your account is inactive for over 6 months.
External withdrawal fees: Sometimes your bank can charge you fees when you withdraw money to them.
Trading 212 Trade Sizes and Limits
You can make trades from anywhere greater than £1 for ICA and Invest accounts, and greater than £10 for CFD accounts.
You can also make unlimited trades.
Trading 212 Trading Platform
What Devices Can I Use Trading 212 On?
You can use Trading 212 on either a webpage or mobile devices. While both are notorious for their user-friendliness, it’s the mobile platform that is often championed as one of the best in the industry.
Web trading platform: Trading 212’s webpage is designed to be slick, well-designed, and user-friendly; it has a two-step authentication login feature, and is simple to place all orders and trades that the platform offers. One downside is that it is not customizable.
Mobile phone application: This can be downloaded from any app store for free. You can trade and order assets just as you can on the platform’s webpage, and it’s notorious in the industry for its easy-to-use layout and simple search function. Again, there is a two-step authentication process, and you can set notifications and price alerts if you want to.
Can I Use Trading 212 in Any Country?
Almost. But there are a few exceptions which stand out like: The United States and Canada.
The four main countries it is available in are: The United Kingdom, Singapore, Japan, and Australia. It is also available throughout Europe.
Is Trading 212 Available in My Language?
Again, there are a wide range of languages available to use. The four most popular are: English, Chinese, German, and French.
However, customer service is only available in English.
How Easy Is It to Use Trading 212?
Browsing the assets available on Trading 212 is extremely simple due to its convenient sidebar. This can appear when hovered over, or be set to stay visible at all times. Similarly, on mobile devices, the platform utilizes a simple sliding bar to navigate through potential assets. Put simply, the dashboard on both platforms is built for efficient navigation.
Completing trades are also very user-friendly. You can choose between stop loss trades, market level offers, or even multi-trades quite easily. The mobile app offers you more depth in detail, with trading stats, and an in-built chart tool.
To manage your current positions, things are again rather straightforward. An open tab found at the bottom of your dashboard details a range of features relevant to your positions. Again, the mobile app offers even more detail, and also offers charts.
Trading 212’s features are mostly directed towards bringing in new customers that are beginner traders, and facilitating it with low-cost alternatives to its competitors.
Zero Commission Investing
With competing platforms charging around £12 per trade, the zero commission feature on Trading 212 is by far its stand out factor. It enables cost-effective day-trading and an attractive market for beginners.
By submitting an email address and password, you will be able to play around with £50,000 to get a feel for the platform. This gives you the opportunity to get used to the platform interface before depositing any of your own money.
There is a 24/7 live chat available to customers; it is visible at the bottom of every screen, so it’s user-friendly, and extremely accessible. You can also get phone support, but the number is based in the UK, so it may not be accessible for anyone outside of the region.
Security and Regulation
Is Trading 212 Safe?
Trading 212 is widely regarded as a trustworthy service, and is a party to the FCA and FDC.
The safety you will have as a trader will vary depending on where you are based, so it’s extremely important to check how the platform’s safety features relate to you.
The platform offers you a few robust security features like: two-factor authentication, negative balance protection, and FCA regulation.
Am I and My Cryptocurrency Protected?
If Trading 212 becomes insolvent, then up to £85,000 of your money is insured. This does not apply to cryptocurrency as the platform does not support these assets.
Is Trading 212 Regulated?
Yes. It is regulated by the UK Financial Conduct Authority (FCA), and the Financial Supervision Commission (FDC).
Do I Have to Verify My Account With Trading 212?
Yes. As with most brokers, you will need to verify your account to trade; the platform will require documents like: a valid ID or passport, and a proof of residence (utility bill or bank statement).
Account verification is in order to keep users safe, and comply with FCA and FDC regulations.
You can access a good range of educational resources and tools, such as:
The demo account
Platform tutorial videos
General educational videos
Quality educational articles
Tools and Charting
There is a useful charting tool available on both the web and mobile-based platforms. They are complete with indicators that can be pre-set and customized. There are also video tutorials for all tools, including charts.
How to Open an Account With Trading 212
Step 1: Sign Up
Step 2: Verify Your Identity
Step 3: Start Trading
Is there an alternative to Trading 212?
Yes, there are many more ways to trade cryptocurrencies. Check out some of our reviews for the best brokers:
While Trading 212 seems to be directed towards ‘beginners’, it has application for traders of all levels.
It is simple, well-designed, and extremely user friendly; the platform also offers great value for day-traders with its zero commission trades. But, due to its CFD-base, any new trader should proceed with extreme caution. Leveraging is highly risky, and only those without robust and meaningful trading experience should experiment with it.
Additionally, for those wishing to trade cryptocurrencies, the platform fails on all fronts. The closet thing you can get to trading crypto is a stock that has crypto holdings, or is in that sector. The reason for this however, is rooted from one of its principal strengths: its security.
By being regulated by the FCA and FDC, Trading 212 is extremely respected institutionally, and can offer good insurance to its users. It offers two-factor authentication on most of its platforms, and generally occupies one of the higher levels of safety than that of its competitors.
It is highly advisable for any new trader to first make use of its Practice Portfolio. Not only does this offer a close look at the platform’s interface, but also prepares you to spend your money in the best possible way.