Trading212 Review

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For the majority of investors in the UK and Europe, Trading212 will be one of the best options for you

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Ever wanted a broker which offers a high-quality product and many features with only a small to no fee? Trading212 ticks all these boxes and may well be the right broker for you.

Trading212 is a great platform for those who are just beginning their investment journey and further due to its low barrier of entry to investing and low fees.

If you have signed up for Trading212 and going through the process of verifying your account, check out our article on tips and tricks to make sure your account gets verified fast- Click here.


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  • If you have signed up but not received a free share then input code 4FWnQwc for a free share.

Product Overview

Trading212 was launched in the UK in 2013 with the aim to provide easy access to a variety of assets to normal investors.

Based in London and approved by the Financial Conduct Authority, with protection from the FSCS scheme, the Trading212 platform is one of the top-ranking brokerages in the UK.

Trading212 has a Trustpilot rating of 4.6 out of 5 with over 19,750 reviews, rating it excellent.

Trading212 trustpilot review

They offer a few types of accounts but the main two are the Invest an ISA account.

Trading212 offers investors a commission-free style brokerage platform, allowing users access to basic features as well as innovative features, such as Trading212 Pies, a new way of investing introduced in the UK. Though for some of their more sophisticated features you may be charged a fee.

Due to Trading212’s business model, it’s a perfect brokerage for those investors who are looking to start their investing journey without fees eating into any capital or gains and is a great platform for beginners.

Trading212 offers clients access to over 10,000 global stocks & ETFs from a multitude of Markets such as the London Stock Exchange (LSE), New York Stock Exchange (NYSE) and the Borse Xetra.

Trading212 Stocks & ETFs

 

Pros:

Large stock & ETF selection

Low-cost trading

User friendly

Innovative features

Good fundamental information

Cons:

No mutual funds available 

No option trading

Foreign exchange fees

 

What is Trading212?

Trading212 was founded in Bulgaria in 2005 but entered the UK market in 2013 originally as a CFD and Forex trading app and was among the first to offer zero-commission share trading in 2017. Leading the industry to a lower barrier of entry for UK investors.

Not only does Trading212 offer a commission-free brokerage platform but you can invest from as little as £1, meaning almost anyone is able to start investing.

Trading212 lets its users invest in shares, ETFs and trade contract differences and commodities while offering accounts like a General Invest Account (GIA), known as the Invest account and an ISA account, protecting your investments from certain taxes.

In addition to these accounts, the platform offers a virtual practice account which allows you to trial investing with a £50,000 account of virtual practice money.

Trading212 is one of the leading innovative brokers for the UK by offering new features such as ‘pie’ investing alongside fractional shares, something which is a growing trend for UK brokers.

How Does Investing Through Trading212 Work?

Trading212 offers two types of Investment accounts, the Invest and ISA. 

Investing through each of these accounts is the same process though each account has different details specific to each that investors need to be aware of.

Trading212 Invest Account

The Trading212 Invest account is a General Investment Account (GIA). The Trading212 Invest option offers investors over 10,000 global stocks & ETFs that can be invested in from as little as £1.

Shares can be purchased in companies listed on many different exchanges from countries such as the UK, The USA, Germany, Spain, Switzerland, and many more.

The Invest account is a general investing account which means you can invest an unlimited amount of money with no penalty but as it’s not a tax-advantaged account there could be tax implications on capital gains or dividends.


Get your Trading212 Invest account here


Trading212 ISA Account

The Trading212 ISA account is very much like the Invest account but with a twist. Returns earned from shares held within the ISA can be taken tax-free by using Trading212’s ISA account.

The Trading212 ISA is a tax-efficient account which allows any capital gains or dividends to not be taxed and these types of gains do not go towards your capital gains or dividend allowance.

*Dividend allowance of £2,000 for the tax year 2021/22

There is a minimum investment of £1, though is £10 if setting up a bank transfer. Users can invest with pounds, euros or dollars and the same can be done in the Invest account.

Trading212 says it will execute withdrawal requests within two business days and this can be done on both the app and through the website.

While the ISA account is only available for UK investors, the Invest account is available for all eligible countries.

Want to know the difference between the ISA and Invest account? Check out our article comparing the Trading212 ISA Vs Invest.


Get your Trading212 ISA account here


Benefits

There are many features users of the Trading212 app can benefit from, all within the app itself. 

Having many features on one app means it is both quick and efficient for users to research companies and buy, if they meet your investing criteria, within just a matter of minutes.

Previously investors would have had to scour multiple websites to search for the fundamentals of a company in order to do due diligence now Trading212 offers a quick snapshot of company fundamentals such as Market cap, P/E ratio, Revenue, EPS, Dividend yield and Beta.

While giving you this quick snapshot they also offer more in-depth fundamentals such as Per share data, management effectiveness, financial strength, and more.

Offering all these fundamentals means that a Trading212 user can complete some significant research all in one place.

Trading212 Fundamental snapshot

Trading212 is also a great platform for dividend investors. 

Some Brokerages charge for dividend reinvestments, which can eat into your overall growth/compounding.  Trading212, on the other hand, allows dividend investors too do it for free  This allows for dividends to compound quicker and produces a higher rate of passive income compared to paying fees

Minimum Deposit

Trading212 offers a low barrier of entry to investing, with as little as £1.
It only takes  £1 you are able to start your investment journey, allowing almost anyone to start building wealth.

Trading212 is also incredibly flexible in how it allows you to deposit you investing capital too.

There are 4 ways to deposit money into your Trading212 account, the easiest & quickest way is to make a deposit with a credit/debit card.

Using a credit/debit card is the simplest way to deposit money into your trading212 account. Though this method comes with a caveat that this payment option is free up to a total of £2,000. After depositing a total of £2,000 a fee of 0.7% is applied thereafter.

Trading212 accepts Visa, Mastercard, and Maestro as card options to deposit onto the platform.

Trading212 card options

There is also the option to deposit money into your Trading212 account via a bank transfer or an Instant bank transfer for free.

This is a great option if you don’t want your card details to be stored on the platform and to save yourself from any additional fees.

Trading212 bank transfer

Special Features

  • Low Minimum Investments – Starting share trading from just £1
  • Practice Portfolio – Trade with a virtual portfolio of £50,000
  • Zero commission Investing – The majority of brokers charge a fee for buying and selling shares. These trading fees can be as much as £12 per trade, which is costly for small portfolios. Trades with Trading212 in the same currency are free with Trading212
  • Zero fee stocks and shares ISA – Platforms often charge fees for using a stocks and shares ISA but Trading212 offers the tax-efficient account for free
  • Large choice of global stocks & ETFs – Trading212 offers a large option of shares, over 10,000, and some of the world’s best-known companies such as Google, Microsoft and Tesla as well as other rising stars.
  • Fractional shares – Fractional shares are not too common for UK brokerages but Trading212 offers fractional shares helping to keep the barrier of entry to investing low
  • Unlimited instant trades – There are no limits on the number of free trades and they are made instantly with live pricing.
  • 24/7 support – Trading212 offers live chat on both IOS and Android while also offering a forum for investors to communicate to each other
  • Tutorials – There are many questions investors have, especially when new to investing. Their video guides help you learn the basics and terminology of investing.

Trading212 Pies

A new feature which Trading212 offers, as is new to the UK, is the Trading212 pies.

The main objective of the pie feature is to help two solve two problems investors come across on their investment journey.

  1. To diversify a portfolio which is easy to maintain and balance over a long-term investment horizon, as the markets move up and down.
  2. To be able to deploy new capital into an established portfolio without having to make complex calculations to keep portfolio allocations in line.

A pie is a collection of stocks and/or ETFs, each of which is represented as a slice of the pie. Each pie can contain up to 50 securities. The plus side is that you can have multiple pies.

Trading212 Pie Feature
Example above is The Dividend Experiments Almost Daily Dividend Pie.

A great feature of the pies is  Autoinvest.

 Auto invest allows you to customize a deposit schedule to your pies, assign payment methods and invest automatically. Additionally, you are able to set your pie to auto reinvest so that dividends earned within the pie will automatically reinvest once enough is earned.

Trading212 AutoInvest

While you are able to invest with as little as a pound, depending on how many pie slices you have, there is a minimum investment, which can vary.


Start creating your Trading212 Pie


Fees

Trading212 is classed as a commission-free brokerage, this means that they do not charge you directly for placing trades on the platform, compared to others which may charge you up to £12 for each buy or sell.

Trading212 Trading Fees

The biggest unique selling point for Trading212 is its zero-commission trading, however, when trading in a different currency, there is a 0.15% charge. For example, if your account is set up in Great British Pounds (GBP) and you buy a stock listed on the U.S exchange, In USD, there will be a 0.15% currency charge. This type of charge is quite common amongst brokerages.

Additionally, when buying UK shares and ETFs you will have to pay stamp duty on these trades, this is the same across the industry and isn’t specific to Trading212.

Trading212 Non-trading Fees

When it comes to looking at the non-trading fees, Trading212 is a cheap brokerage, as they don’t typically charge for non-trading activities.

Non-trading fees include various types of brokerage fees and other activities which are not buying and selling assets. Non-trading activities include withdrawals, deposits, inactivity and account fees.

Trading212 Deposit Fees

There are multiple ways to deposit money into your trading212 account.

While bank transfers are free, Trading212 does start charging 0.70% for deposits made by credit/debit card once you’ve deposited £2,000 via this method.

Trading212 Withdrawal Fees

Withdrawing money from Trading212 is a fee and no additional charges will be added when withdrawing money from your trading account.

Trading212 Inactivity Fee

Currently, Trading212 does not apply an inactivity fee which is great because you won’t be charged even if you do not trade for long periods of time, over months or years.

Other brokerages may charge you if your account has been inactive for long periods of time.

Customer Service

Trading212 offers in-app live chats connecting you to their customer service team by clicking the ‘live support services’ button and typically replies within minutes.

Additionally, Trading212 has a forum where you are able to post questions, they have team members to help answer your questions to the best of their abilities as well as other users who may be able to give you insight into your questions.

Lastly, there is a help centre option for users who may have more generic and easy-to-answer questions which can be answered simply and quickly.

Education

Education is key when it comes to investing and Trading212 does a great job with educational material.

They currently have a Youtube channel which covers 4 main topics, Investing 101, Dividend Investing, Stock Investing and Technical analysis for beginners.

While these videos are accessible from their Youtube platform, they have an in-app button named ‘videos’ which archives them into each of those 4 topics. Making it super easy for people to read and research.

Who is Investing Trading212 For?

Trading212 is a great platform for those who are just beginning in their investment journey and further due to its low barrier of entry to investing and low fees.

When starting out, investors may not typically have large sums of money available or may wish to just dip their toes in and test the waters.

With Trading212 offering commission-free trading alongside fractional shares, it means that anyone is able to start buying shares in their favourite companies or broad-based index funds with as little as £1.

Trading212 accepts traders from 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.

Traders can not use Trading212 from the United States or Canada.


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Is Trading212 Safe?

Trading212 is fully compliant with the latest EU regulations. They are regulated by the FCA in the UK and FCS in Bulgaria, meaning it’s one of the most heavily regulated online brokers on the market, giving investors peace of mind.

With Trading212 being a fully licenced broker, it allows users to feel safe when conducting trades on the platform. 

While online brokers such as Trading212 have come under scrutiny from the press, being compliant with these regulations, rigorous financial controls and measures mean it remains fully compliant with the latest regulations.

Additionally for UK investors, not only is Trading 212 successfully regulated by the FCA and accounts come with FSCS protection.

Trading212 FSCS protection

Is Trading212 Worth Getting?

Trading212 is a brilliant fully regulated broker which allows you to invest in over 10,000 stocks & ETFs with as little as £1. Being regulated by the FCA & FSC along with the FSCS protection means your investments have some of the highest quality protection, meaning no matter how much or little you have, it is likely to be in good hands.

There are not many brokers which allow such a low barrier of entry to the stock market while at the same time charging such low fees, allowing you to invest more of your money and over the long term compound faster.

Capital is at risk, as with all brokers and types of investments.

The offering of a free ISA account allows investors to invest for the long term without the worry of pesky taxes on capital gains or on their dividends. The offering of the Invest account also allows people from countries other than the UK to also access such a great entry broker which offers premium features.


Sign up to Trading212

  • If you have signed up but not received a free share then input code 4FWnQwc for a free share.

Alternatives to Trading212

Trading212 may not be the brokerage for you or maybe better alternatives for your style of investing.

InvestEngine

If you are looking for a simplified investing platform which supports an ETF investment strategy then check out InvestEngine. Their commission-free platform offers a wide range of ETFs to its customers with little to no cost.

You can choose from a personalised portfolio made of ETFs specifically tailored to your needs after taking a quick survey or you can manage your own DIY ETF portfolio.

Freetrade

Freetrade offers a freemium model of investing with different levels of access to stocks & ETFs.

Freetrade offers not only a GIA and ISA account but also a SIPP account to save towards retirement.

They offer an easy and simple way to invest which is great for beginners.

FAQ

Do I Own My Shares On Trading212?

Trading212 holds shares you invest in on your behalf. Whenever you invest with Trading212 your equity is held in a custody account at Interactive Investors. This is common practice for brokers like Trading212.

Is Trading212 Legitimate?

Yes, Trading212 is regulated by the FCA for the UK market and has FSCS protection for UK accounts. Those investing from the EU, these accounts are regulated by the FSC.

How Long Does It Take To Withdraw Money From Trading212?

Trading212 takes up to three business days to process withdrawal requests. It can take a further three days to receive your payment for bank transfers, credit/debit cards and Apple/Google pay.

How Long Does It Take To Open a Trading212 Account?

Opening an account should only take 1 day, depending on all the information needed.

What’s Better, a Trading212 Invest or ISA Account?

For long-term investing the ISA account offers the most benefits, allowing you to protect your dividends and capital gains from taxes.

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