Trading212 ESMA: What are the benefits and downfalls?

filippo ucchino Filippo Ucchino calendar Last Updated: March 2022 timer 3 min read

So, you are registered or thinking about getting started with Trading 212. The best place you can start for a detailed look at the broker is our Trading212 Review where you will find everything you need to know.

Regulation is vital and Trading 212 is a very well-regulated broker. To that point, here we take a closer look at the Trading 212 ESMA broker status, regulation, and protections offered. These provide you with a safe trading environment and are extremely important

Let’s take a closer look.

Table of contents

Is Trading 212 an ESMA Broker?

Trading 212 is an ESMA broker. They are regulated by CySEC under the registration number 398/21 which was obtained on 01/03/2021. This means they follow and are fully compliant with ESMA laws and regulations.

In fact, it is a requirement that to be an ESMA broker, you must be regulated by a European regulatory body, which, in this case, is CySEC. ESMA brokers have stringent rules in place that brokers need to follow, and all are aimed at protecting the trader.

European Regulation CySEC
Number of registration 398/21
Year of registration 2021
European Business Name Trading 212 Markets Ltd.

For more information on the broker’s regulatory coverage and protection offered, including any limitations that they have, you should visit the Trading 212 website directly.

Trading 212 ESMA: Leverage Differences and Features

As an ESMA broker, there are certainly some protections and features that you can have access to. Among these protections is the fact that leverage on major forex pairs is limited to a 1:30 maximum within all ESMA countries.

Furthermore, negative balance protection is offered as a requirement, meaning you can’t lose more than you deposit. Funds are also always held in segregated accounts, while spread betting is banned in most, and binary options trading is banned in all EU countries. Forex bonuses like deposit bonuses also cannot be offered.

You can check these points out for yourself, risk-free by opening a demo account with Trading 212 with no obligation.

Features Trading 212 Markets Ltd. Trading 212 Global Ltd.
Regulated by: CySEC FSC
ESMA Protections Yes No
Segregated Bank Accounts Yes Yes
Maximum Leverage on Forex 1:30 (retail) 1:300
Negative Balance Protection Yes Yes
Forex Bonuses No No

When has Trading 212 become an ESMA broker?

Trading 212 has been registered under the business name Trading 212 Markets Ltd. in Cyprus since 01/03/2021. They operate under the registration number 398/21 with CySEC. Since they are now registered in the EU and Cyprus, they are considered an ESMA broker who can operate throughout the entirety of the EU.

If you want to double-check this regulation, you can do so by first taking a look at the list of countries belonging to the ESMA Supervisory Authority, and finding the country in which the broker is regulated.

On finding this, you should then be able to follow the link through to the regulatory body of that country and enter your brokers’ information such as name and registration number. Finally, in the case of this broker, you will be guided to the Trading 212 CySEC regulation page. Here you will be able to confirm all of the regulatory information as you will also see below.

Find the details on the Trading 212 CySEC regulation


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About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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