Trading 212 Review 2020 and Technical Opinions

Filippo Last Updated: July 2020 20 min read
security 96
cost 57
trading 56
education 80
Rated: Excellent
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In this Trading 212 review, you’ll find everything you need to dispel any doubt, including our feedback on Trading 212, both practical and technical, after years of experience on the platform.

The best thing you could is to open a free demo account to try out first-hand the Trading 212 platforms, to be able to fully follow this report.

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Trading 212 review
Security

We start our Trading 212 review in an essential area for this, and any other broker in the industry. That is the area of security. Having been around the industry for many years, we would expect that Trading 212 offers top-level security and a safe trading experience for you. Here we will take a more detailed look at exactly what is on offer.

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Foundation and Offices

Trading 212 was founded in 2004 so they already have a number of years operating experience in the industry. They were founded in Bulgaria but have since expanded to offer forex trading services to customers worldwide. Here we will take a more detailed look at exactly what is on offer:

United Kingdom (HQ)
107 Cheapside
London
EC2V 6DN

This London location also serves as the brokers headquarters.

Regulations

Trading 212 is a broker which clearly recognizes the importance of having good regulation in place to help protect you as a trader. This regulation is provided through the tier 1 regulatory body of the FCA in the UK (#8590005) if you are registered with the UK entity of the broker. If you are registered with the Trading 212 Global Ltd entity of the broker, then regulation comes by way of the FSC in Vanuatu (#RG-03-0239).

Money Protection

Tier 1 regulation is not the only thing in place to help protect you as a trader at Trading 212. They also provide negative balance protection for all traders. This means that you can never lose more than you deposit in your account, and so, it limits your risk. The broker also holds all money in segregated accounts with top banks. This means that if they ever did encounter financial difficulty, your funds would be fully protected.

Furthermore, if you are a UK trader, you will qualify for the ICF insurance provided by the broker. This will further protect you and can cover up to £85.000 in losses if the broker is bankrupt or insolvent.

Awards

Although Trading 212 has not picked up a lot of awards as yet, they still have many positive accomplishments on their record. This includes being the most downloaded broker app in both the UK and Germany with more than 14 million downloads and increasing all the time. Trading 212 was also one of the first brokers in the EU to introduce commission-free stock trading. This is a model that many have since followed.

Not Accepted Clients

Trading 212 is regulated by FCA. This regulation allows Trading 212 to accept clients from the UK and the EU. The offshore regulation from the FSC Vanuatu allows Trading 212 to accept customers globally. However there are a few exceptions:

    • Burundi
    • Central African Republic
    • DR Congo
    • Guinea
    • Libya
    • Mali
    • Somalia
    • Sudan
    • Tunisia
    • Western Sahara
    • Zimbabwe
    • Anguilla
    • Belize
    • Bermuda
    • British Virgin Islands
    • Canada
    • Cayman Islands
    • Costa Rica
    • Dominica
    • Haiti
    • Panama
    • Puerto Rico
    • Saint Kitts and Nevis
    • United States
    • Venezuela
    • US Virgin Islands
    • Afghanistan
    • Cambodia
    • China
    • Iran
    • Iraq
    • Lebanon
    • Myanmar
    • North Korea
    • Pakistan
    • Palestine
    • Syria
    • Turkey
    • Yemen
    • Belarus
    • Bosnia and Herzegovina
    • Montenegro
    • Russia
    • Ukraine
    • American Samoa
    • Guam
    • Nothern Mariana Islands
  • Pros
    • The broker is well-regulated by the FCA. This is one of the top regulatory bodies in the sector
    Cons
    • Despite their size, they only provide for one physical office location worldwide
    • They only have regulation in place from two bodies. This is minimal when compared with other major brokers

    Trading 212 review
    Costs and Accounts

    The next area to address in our Trading 212 review is that of the different account types which are made available to you when trading at the broker, and also the various costs that you can expect to come across when you are trading here and how these stack up against competitors.

    The first key point to note is that it is very easy to open your Trading 212 account. All you will really need is proof of your address and identity through your passport and a recent utility bill, and you should be ready to pass verification and start trading at the broker.

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    Account Types

    Here we will take a look at the variety of account types that Trading 212 makes available for you as a trader.

    Demo

    The Trading 212 demo account is your perfect place to begin trading with the broker, particularly if you are new to trading. This allows you to try trading with no risk at all through virtual funds, and with no obligation to make a real money deposit, yet you can see exactly how the broker functions.

    Added bonuses of the Trading 212 demo account include the fact the account use is unlimited, can be switched to a real CFD or Invest account at any time, and you do not need to register to try it. This makes it completely accessible in the best way.

    Trading 212 CFD Account

    The Trading 212 CFD Account is the popular choice of many at the broker. This account features a minimum deposit of $10 or €10 making it perfect for low cost trading. While here, you will also have access to trading in more than 1,800 instruments. These include a wide range of forex, stocks, commodities, and indices.

    The trading costs with this account type are kept as low as possible, and instant execution is available. The only downside here is that there is no Islamic trading account option made available.

    Trading 212 Invest Account (ISA Account)

    With an even lower minimum deposit of just $1 or €1, you can use the Trading 212 Invest Account to trade in more than 3,000 stocks from around the world, as well as many ETFs on as many as 7 different stock exchanges. This account is at the center of the huge popularity of the broker in Europe as they offer fast trading in real stocks, not CFDs, where you can also trade in fractional stocks.

    Better still, and a huge driver of the popularity across the world, is that there are no commissions or fees attached with trading shares through this account type, and no conversion fee at all is applied. Since there are no rollover-fees charged, then an Islamic account here is not required and the account type should be compliant with Sharia law, though you should first verify this with the broker support team.

    Trading 212 Islamic Account

    Unfortunately, at the moment, there is no Trading 212 Islamic Account offered at the broker. These account types do not charge swap fees so that they can be compliant with Sharia laws for Islamic traders. There are many brokers that do offer these account types though, so if you do require an Islamic account, feel free to check out our article on the best swap free brokers around.

    Trading 212 Professional Account

    Trading 212 does offer a professional account to traders within the UK and EU. In order to be eligible for this account type though, you must meet at least two of the following requirements first:

    • You must have made an average of 10 transactions of significant size per quarter in the past year
    • You must possess a financial instrument portfolio of over €500,000 (in your bank bank or trading account)
    • Have enough relevant experience in the financial services sector

    If you do meet two of these criteria, then you will be able to access a range of benefits which includes access to higher leverage of as much as 300:1 in some markets.

    Account Base Currency

    When it comes to base currencies, two in the form of USD, and EUR are offered by the broker. If your deposit/withdrawal method matches one of these two, then you can save yourself from having to pay any kind of conversion fee on deposits and withdrawals with the broker.

    Deposit

    Here is everything you will need to know when it comes to making a Trading 212 deposit, including the minimum deposit, and any fees you should be aware of.

    Trading 212 Minimum deposit

    The minimum deposit at the broker is kept very low. This currently stands at just $10 if you are using a Trading 212 CFD account, and $1 if you are using a Trading 212 invest account ($10 if you fund it by wire transfer.

    Deposit Methods

    All of the major Trading 212 deposit methods that you would expect are made available. This means you can deposit through bank transfer, credit/debit cards that are Visa or MasterCard, and eWallets that are Skrill or PayPal.

    A wide range of other methods may be available depending on your location and these include, Dotpay, Giropay, Carte Bleue, Direct eBanking, Apple / Google Pay , and iDEAL.

    All of the methods can typically take up to 10 minutes to complete, though this can vary and your first deposit may take as many as three business days.

    Deposit Fees

    Trading 212 deposits is usually free of any fees with the exception of if you are using wire transfer and your bank applies a fee, or you deposit a non base currency. This attracts a 0.5% fee.

    Withdrawals

    Here is the complete lowdown on making a withdrawal at Trading 212 including all of the methods available, and any fees you may encounter.

    Withdrawal Methods

    Making a withdrawal from your Trading 212 account is not a difficult process. You will have access to all of the same withdrawal methods as you had for making your deposits. These methods can take up to 48 hours to process. You should note that you will have to withdraw at least $10 or €10 in case of a Trading 212 CFD account, and $1 or €1 for an Invest account.

    Withdrawal Fees

    Withdrawals with Trading 212 are typically free of any fees.

    Spreads & Commissions

    At Trading 212 you can find both fixed, and floating spreads available. Fixed spreads are available on mini-crypto markets, while all other assets, including standard crypto markets, operate with floating spreads. When it comes to trading in real stocks and ETFs, then the broker does not charge any fees if you are a Trading 212 Invest account holder.

    Here is a sample of the minimum floating spread you can expect to find on some of the most traded assets with the broker.

    • EUR/USD – 0.8 pips
    • Gold – $0,25
    • SPX500 – $0.50
    • US Shares – $0,00
    • Bitcoin – $35,0

    Trading 212 Cryptocurrency fees

    Also available at Trading 212 are fractional cryptocurrencies as CFDs. These fractions are in 1/10th values of the regular cryptocurrency and operate on a different spread basis. This asset charges a fixed spread while trading fractional cryptocurrency offers a floating spread. Here then, is another sample of some of the spread rates you can hope to find on both markets.

    • Bitcoin – 3.5 (fixed), 35.0 (floating)
    • Dash – 0.75 (fixed), 9.5 (floating)
    • Ethereum – 0.19 (fixed), 1.0 (floating)
    • Litecoin – 0.13 (fixed), 3.5 (floating)
    • Monero – 0.2 (fixed), 2.0 (floating)

    Fees

    Here is a more detailed look at a couple of other fees that you may come across during your time at Trading 212.

    Overnight Fees

    If you are operating a Trading 212 CFD account, then an overnight fee will be charged. This is due each day at the closing time of the market and can be checked in your trading platform for the most accurate and up to date charges based on interest rates. These fees do not apply to real trading assets on your Invest account.

    Inactivity Fees

    You will be glad to note that Trading 212 does not charge any inactivity fee. This is another area where the broker is positive for new and casual traders.

    Pros
    • You can access the demo account without having to register
    • The very low minimum deposit makes the broker extremely accessible
    • All of these deposits are processed in a very fast timeframe
    • Stockbroking with real assets is available commission-free
    • The broker does not charge any inactivity fees at all
    Cons
    • No Islamic account options are offered to traders
    • There are only 2 base currencies made available
    • The broker spreads on CFDs are quite high by comparison

    Trading 212 review
    Trading

    Now that you have gotten to know the broker landscape in terms of opening your account and getting started, we will delve deeper into the trading experience you can expect to find. This includes a detailed look at the trading features, and trading platforms which are made available.

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    Trading Features

    Here is the range of trading features that you can expect to find well-catered for by the broker.

    Executions

    Trading 212 is a market maker broker type. Essentially this does mean that they create their own internal market and act as a counterpart to all of your trades. It does though mean that your cost of trading can be accurately forecast, and Trading 212 offers much faster execution than most on stocks and shares in particular.

    Sizing

    Trading forex, the minimum trade size is 1 micro lot. This is equal to 0.01 standard lots, or a cash value of $1,000 which can reduce greatly if you use leverage. Trading stocks and some other assets though, the broker is very flexible and allows trading in fractional stock. This means you can buy a percentage of a stock and is very useful particularly for newer and lower risk traders.

    Techniques

    In terms of trading techniques, both scalping and hedging are permitted by the broker. So too is algorithmic trading through the use of EAs facilitated by your trading platform. Spread betting is not permitted.

    Risk Management

    As with most brokers, Trading 212 offers a standard range of risk management tools directly through the trading platform. These are the setting of stop losses, trailing stops, and take profits which can help manage currently active positions. Limit orders can assist in managing entry to new positions, and margin calls will help you retain a certain level of equity.

    Trading Hours

    With trading hours at the broker, forex markets are open on a 24/5 basis Monday to Friday with the swap on forex applied every day at 9pm GMT. Commodities are also available on the same timeline, and stocks, ETFs, and Indices will vary depending on local trading hours.

    Leverage

    The leverage you will have access to at Trading 212 really depends on two factors. The first of these is the assets you are trading, and the next is where you are regulated. Leverage is available only on the Trading 212 CFD accounts where the maximum is 30:1 in the UK or EU. This can be extended to a maximum of 300:1 on some forex markets if you qualify for a professional account. With the Trading 212 Invest accounts, no leverage is offered as this is real asset trading, not CFDs. The availability of fractional stocks though removes the need to use leverage to gain access to more expensive markets for new traders.

    Platforms & Mobile

    Trading platforms are vital with any broker. Here is what you can expect from the trading platforms at Trading 212.

    Charting and Trading tools

    Trading 212 makes more than 60 drawing and charting tools available in total through their trading platform. This allows for a very customizable experience that can help you gain market insight no matter your level of trading experience.

    Trading 212 Webtrader

    The Trading 212 proprietary trading platform is available as a web trader. This makes it very easy to use quickly with no installation needed. You can trade right away with the very intuitive design and layout directly in your browser. Here you can maximize the benefit from some 60 charting tools in a way which is easy to follow for all levels of trader in a very streamlined experience.

    Trading 212 Mobile Platform

    The Trading 212 mobile platform is one of the most downloaded platforms in the world, particularly in the UK and Germany where they have more than 14 million downloads. It is available on your Android, iOS, and tablet devices and houses every same feature as the webtrader, losing no functionality at all, and providing for an excellent trading experience on the move.

    Markets

    Trading 212 offers both CFDs and real stock trading. With a Trading 212 Invest account, since it offers real trading, you won’t be able to short your positions. In total though, the broker provides for an excellent selection of assets, more than 3,500 in total. Here is the precise breakdown of what you can expect to find on offer:

    Forex

    Trading 212 has more than 210 currency pairs available for trading. These are all traded as CFDs with a spread that starts from 0.8 pips and no further commission. The only fees to consider are the rollover fees charged at 9pm GMT each day.

    Commodities

    With commodities, only metals are available for trading. The two available are gold and silver. These can be traded against the USD, AUD, CHF, EUR, GBP, and TRY.

    Indices

    A total of 10 indices from around the world can be traded. These include major markets from the EU, US, and other regions.

    Stocks

    The broker comes into its own with great stock trading as real in more than 3,000 stocks across 7 exchanges names the London Stock Exchange, NYSE, NASDAQ, Deutsche Borse Xetra, Euronext Amsterdam, SIX Swiss Exchange, and the Bolsa de Madrid. Here you can also trade in fractional stocks if you wish.

    ETFs

    There are over 400 ETFs also available to be traded as real. This includes a range of 35 ETFs which simulate indices that are not available among the CFD indices traded (such as the Canadian Index)

    Futures

    In the futures markets, multiple options are available to be traded including in metals, energies, indices, and agricultural assets. In total, more than 80 futures contracts are available.

    Products

    Here is more information on a couple of products and areas which you may utilize when trading with the broker.

    Trading 212 Proprietary Trading Platform

    As mentioned the Trading 212 proprietary trading platform provides a great and very user-friendly environment where you can engage in trading in a very intuitive set up. The platform provides a wide range of helpful charting tools and you can try it out for free without even needing to register on a demo account. These are some of the reasons why the mobile platform is one of the most popular in the world with more than 14 million downloads to date.

    Trading 212 AutoInvest

    The Autoinvest feature allows you to build a wide and diversified portfolio with little or no direct management beyond setting the parameters. These kinds of auto tools are very popular for busy stock traders who want to optimize their portfolio with limited time. The feature is mobile friendly and has a number of tools attached to help you identify growth and trends as well as decide on the percentages of equity you wish to invest in each area. The system will then automatically carry out these instructions.

    Social Trading – Copy Trading

    Trading 212 does not offer social nor copy trading services within the platform. Outside the platform there’s the Trading 212 Community Forum, where you can interact with other users where you may choose to implement some strategies you have picked up.

    Pros
    • The availability of fractional shares and ETFs keeps trading hugely accessible to all
    • They provide for a great, and very popular proprietary trading platform
    • Trading 212 has a huge selection of assets available with more than 3,500 in total
    • Their AutoInvest service is perfect for those investing in stocks who want to best optimize the process
    Cons
    • There are no nano lots available for trading with micro lots being the smallest available
    • Having only one type of trading platform available limits choice for traders
    • No platform social or copy trading features are directly available

    Trading 212 review
    Education and Support

    The final area we will take an in-depth look at with Trading 212 is again an essential component of a positive trading experience, and key to making sure you develop as a trader and feel supported throughout your time at the broker. Here we will look at exactly what measures Trading 212 puts in place to ensure this.

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    Languages

    There are more than 10 languages supported by the broker. These include English, Spanish, French, Russian, Arabic, and Mandarin Chinese. This should provide ample support to many traders worldwide.

    Research

    The research section at Trading 212 is relatively basic in nature. Here you will find some updated daily news, a more detailed economic calendar which can keep you informed on any key economic events happening throughout each day and allow you to plan. The broker also provides a daily market analysis on a number of assets that you can follow. These include forex pairs, indices, commodities, and more.

    Customer Service

    When it comes to the customer service aspect of the broker, they can be contacted through email or phone only. Unlike some other brokers, their website does not make a live chat function available, or an FAQ of the most commonly asked questions. Still responses from the broker through these channels are professional and timely.

    Education

    The education section at Trading 212 is very well catered for. Here you can access a fully dedicated YouTube channel that provides easy to follow guides, tutorials, and more information that is suited to all levels of traders seeking to learn more. Here too you will have access to a wide range of charting and analysis tools training to give you some additional insight into markets where possible. Trading 212 also makes a useful trading glossary full of terms available to you.

    Pros
    • They provide a very good education section which is packed full of useful content
    • With a dedicated YouTube channel, their educational content is very accessible to all traders at the broker
    Cons
    • They do not provide any live chat function

    Trading 212 review
    Our Opinion

    Overall, our Trading 212 review can conclude that, with many years of operating in the industry under their belt, Trading 212 are a secure broker, offering a safe, and highly compliant trading environment even though their only top-tier regulation really comes from the FCA.

    The broker is an extremely popular choice with young traders. More than 14 million app downloads prove that fact. This is mainly due to the fact they are extremely user-friendly with their interface, and have a great low minimum deposit starting at $1. You also don’t need to register to use their demo account, and you can trade fractional stocks and ETFs with Trading 212. This keeps stock trading very accessible even to new traders and means you can still purchase some high value stocks for a very reasonable price.

    Altogether, even though the spreads are not very competitive, the broker does lack some other features like a rollover-free account, and a live chat function on their website, they are still making trading very accessible to all, and should be commended for doing so.

    Trading 212 then, makes a great choice for those beginner traders who are new to trading, and particularly in stocks. For more experienced traders, and certainly professionals, there may be more suitable broker choices available, but Trading 212 does fill a much needed gap in accommodating younger, new traders in the industry very well.

    Trading 212 Pros and Cons

    Pros

    • Trading 212 are well-regulated by a top-tier body in the form of the FCA in the UK
    • They are an excellent choice for beginner traders who are new to trading and the industry.
    • You can use the Trading 212 demo account without needing any registration making it very accessible to all traders.
    • Commission-free stock and ETF trading is available and used by many traders.
    • You can trade in fractional stocks and ETFs. This is great for reducing your capital requirement and risk.
    • Trading 212 provides a healthy selection of more than 3,500 assets for you to choose from.

    Cons

    • For a major broker, they have a poor physical presence with just one office location.
    • They offer no Islamic account option for traders who require swap-free trading.
    • The spreads charged on CFDs are relatively high.
    • Trading 212 does not offer any platform for social or copy trading.

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    Trading 212 Review 2020 and Technical Opinions

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    Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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