Trading 212 Review: A Broker for Shares Investors on a Limited Budget

Trading 212 is a brokerage offering access to CFDs, cryptocurrencies, and FX instruments. Based in London and established in 2004,  the company prides itself in being a disruptor in the fintech industry.  According to their website, it is the first one to commission-free stock trading services in the UK and the rest of Europe. Keep on reading to learn more about them in our Trading 212 review. 

Alongside its zero-commission stock-trading offer, the broker has also grown widely popular among retail traders because of its easy-to-use app. The company prides itself in being ranked as the number one trading app in the UK since 2016 and breaking into the top spot for Germany in 2017. According to its website, Trading 212’s mobile app has over 14 million downloads.

In terms of security, Trading 212 is compliant with the rules and regulations of the UK’s financial watchdog, the Financial Conduct Authority (FCA). It also holds a license under the Bulgarian Financial Supervision Commission (FSC). With these two licenses, Trading 212 is one of the most heavily-regulated brokers in the industry.

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Trading 212 Review: Pros and Cons

Pros

  • Trading of real stocks and ETFs are free of commission-charge.
  • Fractional shares
  • Opening an account is quick and convenient.
  • The trading platform has great functionality and is intuitive.

Cons

  • Available tools for fundamental analysis are too basic.
  • Spreads are relatively higher compared to other brokers.
  • The platform does not offer advanced and complex features that are available on MT4 and MT5.

Who Is Trading 212 Recommended For?

Anyone who trades with Trading 212 would benefit greatly from its commission-free offering. Traders who prefer to trade on the go on their phones would find its mobile platform helpful because it does not have the complexities that you see on an MT4 and MT5 platform. They also offer fractional shares trading, which is great for people with limited investment budgets. 

With this being said, those who prefer more advanced features on their platforms such as auto trading and copy trading may not maximize the benefits of Trading 212.

On the other hand, beginners who want to try their hand at trading may download and test Trading 212’s demo account without a need for registration.

Top Trading 212 Features

Zero Commissions

Implementing a zero-commissions scheme aligns with Trading 212’s mission of democratizing trading by making it more cost-effective for its clients. On the other hand, the broker does charge an inactivity fee if there has been no movement in the account for 180 days.

Fractional Shares

You can trade fractional shares, which is good for investors with limited funds. As an example, if you would like to buy a share priced at $600 but you only have $300 to invest, then you can buy half of a share. 

Easy-to-use, award-winning mobile app

Unlike the more popular MT4 and MT5 trading platforms, Trading 212’s mobile app is more functional and conducive for trading on the go. It forgoes the complexities which are not critical to analyzing markets and executing trades.

Trading 212 Overview

Regulation & Licensing – FCA and FSC

Accepted Jurisdictions – Australia, Thailand, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries. However, traders in the United States and Canada cannot use Trading 212.

Assets Offered – Trading 212 offers over 3000 instruments across different asset classes. It has over 150 forex pairs; cryptocurrencies include Bitcoin, Ethereum, and Ripple; stock indices as well as individual stocks. 

Platforms Available – Trading 212 has its own platform which is not built on MT4 or MT5.

Mobile Compatibility – Trading 212 offers a mobile platform that can be downloaded in iOS and Android phones and tablets.

Payment Types Accepted:

  • Bank Transfers
  • Credit / Debit Card Payments
  • Skrill
  • Dotpay
  • Giropay
  • Carte Bleue
  • Direct eBanking
  • Apple / Google Pay 
  • PayPal
  • iDEAL

Languages – English,

Trading 212 Review: Account Types

Features CFD Invest Account
Account Currencies USD, EUR USD, EUR
Available Leverage 1:30 None
Minimum Deposit 10 USD, 10 EUR 1 USD, 1 EUR
Starting Spreads 0.00008 N/A
Commission Per Trade N/A N/A
Decimal Pricing N/A N/A
Swaps/Rollovers Dependent on position and currency pair N/A
Trading Instruments Forex, Stocks, Indices, Commodities CFDs Real stocks, ETFs
Min. Lot Size Per Trade 0.01 
Max Lot Size Per Trade N/A
Demo Account Yes
Swap/Rollover Fee Yes
Copy Trading Support No

Trading 212 Regulation

Trading 212 is compliant to the FCA (UK) and FSC (Bulgaria).

Trading 212 Spreads and Costs 

Because of the broker’s commission-free structure, it does not offer the most competitive spreads. The spread on EURUSD is at 0.00008. 

Non-trading fees

Trading 212 does not charge for an inactivity fee for accounts that do not register any movement for 180 days. In addition, there are also charges for currency conversion.

Trading 212 Customer Service

Customer support is available 24 hours for 7 days of the week. Trading 212 also offers support across 16 different languages. Its customer service is highly regarded by its clients based on the testimonials available on the broker’s website.

Trading 212 Account Opening Process

Account opening with Trading 212 can be done in 1 business day. After choosing which type of account they will open, clients then provide their personal information and proof of identity usually by using a government-issued ID. A virtual contract will then be sent to the client for signing. When that is done, the client may fund his/her account.

Minimum Deposit 

10 USD, 10 EUR.

Deposit and Withdrawal Fees

Trading 212 does not charge deposit and withdrawal fees.

Trading 212 Education Offering 

Trading 212 offers technical analysis, daily market updates, and educational materials through video and written content to help their clients analyze the markets. It also has an extensive forum and FAQ section that help in educating investors.

Trading 212 Review Conclusions 

Trading 212’s commission-free offering and easy-to-use platform make it stand out among other brokers. With this, it’s important to point out that the broker does not offer the most competitive spreads in the market. Beginners who are overwhelmed by extensive features offered by MT4 and MT5 platforms may find Trading 212’s platform better. Alternatively, more advanced traders who are looking for more flexibility and advanced features could find Trading 212 more limiting.

Trading 212 Platform
Trading 212 Review Platform

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