Trading212 is an online broker that offers CFDs, ETFs, and real stocks across a multitude of assets classes. Based in London, the company is regulated by two international organizations, which should give you confidence that your capital is secure.
The company was founded in 2004 and has been used by people worldwide to trade various financial instruments. This Trading212 review will help you decide if this trading platform is best for you.
In this review…
- Trading212 Summary
- Trading212 Pros and Cons
- Additional Features
- Prices and Plans
- Trading212 Review Summary
After downloading Trading212, users can enjoy a modern cross-platform experience that operates fluently without any glitches. A demo account option is available so that first-time traders can use it to test out the market and practice their skills.
It’s essential to note 70% of retail investors lose money when investing with this broker, so be aware of that when opening high-risk leveraged positions.
The trading platform and website are available in 11 languages, and these include:
There is 24/7 live chat customer support, but unfortunately, it’s only available in English and is based in the United Kingdom. However, email support is available for any other languages listed above, and the team responds timeously to all requests. You can be sure you are in good hands when dealing with its customer support as they are traders.
Client fund protection is at the forefront of Trading212 as your account security is of the utmost importance to the company. All trader’s funds are stored in segmented bank accounts and are protected under the Investor’s Compensations Fund (ICF) for 90% settlement up to £20,000.
The client’s accounts are also under protection via the Financial Services Compensation Scheme (FSCS), covering traders for up to £85,000.
Now that we have discussed some of the security features of this product, it is time to delve a little deeper into Trading212 to find out if it’s a good broker.
Trading212 Pros and Cons
Trading212 is a good broker that makes it easy to start investing with zero commission on trades and no funding fees. You can access a range of assets and global stocks by joining the company, which allows you to diversify your portfolio. You can ensure that your funds are secured when you deposit via one of the many payment methods available.
People looking to invest in cryptocurrencies might be disappointed with this broker as it decided to remove digital assets from its instruments in 2020. The company did this to protect itself and traders during the unsettling time when countries banned cryptocurrencies worldwide.
The platform is straightforward to navigate and is optimized for the mobile user’s experience. It offers an exquisite range of features, analysis tools, and charts without feeling overburdened or clunky.
One fantastic feature is the option to place trades in many ways and perform a vast number of operations on a specific trading pair simultaneously.
Some traders may enjoy a more feature-rich or complex platform such as MT4, but others might appreciate the bespoke custom-built style of the Trading212 application.
Spreads / Commissions
While Trading212 offers relatively low spreads, it is admittedly not the best on the market as other brokers offer more cost-effective trading, such as eToro. Some assets have better spreads than others, so be aware of this when investing for the first time.
There are currency conversion fees for withdrawals; however, this is standard in the foreign exchange market, so expect this from many other brokers too. In most cases, your bank or a third party handles this conversion ratio through an updated system before delivering your funds.
In late 2020, the company suddenly raised margin requirements to 50%, which left some traders considerably uncertain concerning capital requirements. The firm also stopped taking on new clients during the Reddit / GameStop volatility, which shows a lack of customer care and unpredictability. In our opinion, this is enough reason to find a more preferred broker that doesn’t perform underhand tactics like this.
Leverage increases the risk of losses and profits, so investors need to be scrupulous when using it for their trading strategy. Professional accounts have the option of using leverage up to 1:300, which is higher than many other brokers.
It is good to note that the maximum leverage does not need to be used for every trade, so adjust the settings while developing your investment plan.
The Trading212 app is specifically designed for mobile users and is available on Android and iOS. It allows trades to be conducted directly from visualizations while still offering full functionality; this is a feature not available on many other trading platforms.
An excellent experience with well-thought-out data visualizations and straightforward navigation provides you with in-depth details on the market when using the mobile app. This application is the flagship product of Trading212 and is quick to download plus install.
It has been developed with active traders in mind and is one of the best custom trading platforms in the industry.
There are multiple payment options available including, debit/credit cards, a selection of digital wallets, and of course, bank transfers. Keep in mind that the only way you can fund your account is through money – crypto is not accepted.
Money can be withdrawn to your bank account and usually take two to three business days to show on your balance sheet.
Trading212 allows investors to juggle between practice and real accounts efficiently, which removes the fuss of setting up two individual accounts. The setup takes under a minute for a new account to be running and is a straightforward and quick process. A single account can be switched between practice and real funds, which adds to the effectiveness of both versions.
What’s excellent about Trading212 is that it offers a range of additional features that support its core trading application. These added extras include the following:
- A detailed economic calendar
- Daily financial news updates
- Tutorials on how various trading elements work
- Summaries of key industry terms and concepts
- Guides on how to use charts to conduct analysis
- An in-depth education system
- Negative balance protection
All these additional features are aimed at helping beginners start their trading journey and find the consistency they are looking to achieve. It is always good to remember that risk comes with trading, and if you are not careful, you could lose your money.
Around 70% of investors lose money when leveraging financial instruments on the forex markets.
Trading212 Prices and Plans
There are no deposit or hidden fees involved when you fund your CFD account using a bank transfer. However, it is imperative to note a 0.7% deposit fee is included if you invest more than £20,000 using electronic wallets or debit/credit cards.
It is important to remember that a bank transfer can take several business days to reflect in your account, while payments from a debit/credit card are instant. When funding your account with capital, you must use a bank account or digital wallet in your name; it prevents fraud and is required by the money laundering legislation.
Please be aware of the company’s recently increased margin requirements when investing with it. The 50% increase has been a cause for concern for those who have loved investing with Trading212 because it requires people to invest more capital.
These additional fees could be the downfall of this company as other brokers are less stringent, requiring less from clients.
Trading 212 Review Summary
Traders around the world have used this trading platform since 2006. It is praised by many for its fast execution speeds and intuitive software. The easy-to-use trading software makes it quick to switch accounts, and its bespoke visualization charts can help make analysing a particular trading pair simplistic.
However, Trading212 does not come without flaws, which is evident in the company’s unpredictable behaviour when removing cryptocurrencies from the platform. The increased margin requirements are also a downside to the broker, so new investors need to be aware of this when investing their hard-earned cash.
Overall, this is a recommended and trustworthy broker providing traders worldwide with its services for over a decade. If you are an experienced trader and have reasonable capital, it could be a good idea to invest with Trading212.
The company is protected by various compensation plans which pay users out if there are any issues regarding a security breach of their account. You can ensure that your capital is secure when investing with Trading212, as its mobile and desktop applications are protected with encryption technology.
If this Trading212 review has helped you, please recommend DigitalSupermarket.