IS TRADING 212 the best option for ISA? MoneySavingExpert Forum
Trading 212 also offers a free debit card with some attractive features. It currently pays 1.5% cashback and includes the ability to hold different currencies with a conversion fee of just 0.15%. Of course, that doesn’t mean it will be suitable for everyone. The range of stocks and investments is good, but it’s not as comprehensive something like Interactive brokers (IB). So those looking to invest in more obscure stocks may need to use an additional platform or request said stocks to be added to Trading 212.
Made investing and saving really easy
You can also easily see your portfolio by selecting the ‘pie’ symbol and view your portfolio’s performance over time in chart form. To provide a balanced view, we’ll examine both the pros and cons of using their platform. We’ll start with what we like about Trading 212, as there are many positives to highlight about this broker – though the drawbacks are worth considering, too.
Currency conversion fee
It’s quick https://traderoom.info/is-trading212-a-reliable-brokerage-firm/ and easy to open an account, and the modern intuitive interface not only sets it apart from traditional trading platforms, but makes it easy for beginners to feel comfortable. In addition to earning interest on uninvested cash, Trading 212 now offers a debit card that you can use to access the money in your invest account. We have a full separate review of the Trading 212 debit card here. Thank you for taking the time to share your positive experience ❤️We’re thrilled to hear that you’re enjoying our services and appreciate your feedback on the features you find most valuable. CFDs allow traders to speculate on the price movement of financial instruments without owning the underlying asset. Trading 212 offers CFD trading across a variety of markets, including stocks, forex, indices, and commodities.
There have also been some reports of delays in withdrawals, although these issues appear to have been resolved in recent months. I personally haven’t had any issues here, but have found it strange that withdrawals seem to be split into random amounts. For example a £2,000 withdrawal might be deposited into my bank in three separate payments of £900, £600, and £500 respectively. There have been some issues and controversies with Trading 212 in the past. In the UK we’re charged stamp duty when buying UK shares over £1,000.
In Trading 212’s own words, 78% of retail investor accounts lose money when trading CFDs on their site. In fact, Trading 212 offers 5.2% interest on uninvested cash in their investing accounts too – but this comes with a catch that we’ll address shortly. Trading 212’s Cash ISA is a glorified savings account, which offers a generous interest rate of 5.2% at the time of this review, which is the highest on the market. The Trading 212 debit card is an innovative way to access your uninvested cash without having to withdraw it. This means it can continue to earn interest until you need it.
Trading 212’s own figures show that 77% of its investor accounts lose money when trading CFDs. It’s more than just a share dealing platform though, users can also trade CDFs (contracts for difference), ETFs (exchange traded funds), commodities, and foreign exchange. Cryptocurrency can no longer be traded directly, those specifically interested in crypto should try the eToro platform. Thank you for leaving us a review and we’re sorry about your disappointment.The interest rates are based on rates we receive from banks and QMMFs we hold your cash with.
- The answer to this is yes, but it’s not without its controversies which I’ll address further down.
- Learn more, and view the full range of currencies on the Trading 212 website¹.
- I’m not a commodity trader myself, beyond dabbling in gold during periods of market turmoil, but the range appears decent with over 45 markets available.
- It also charges a ‘spread‘, which is the difference between the ‘bid and ‘ask‘ (buy and sell) price in a currency pair.
- The platform maintains this cost-effective approach for withdrawals as well.
- When using this feature, not all of your uninvested money would be covered by FSCS protection.
Lower interest rates for existing customers
Trading 212 is one of the cheapest investment platforms for everyday investors looking to invest in the stock market. The company makes money through CFD (contract for difference) trades, allowing it to charge no fees or low fees for other investing activities. To benefit from this interest on uninvested cash in investing accounts, users must opt into the “Earn Interest on Your Cash” program. This involves your money being invested into QMMFs – Qualifying Money Market Funds – which aren’t covered by FSCS protection. If these funds become insolvent, investors could lose that portion of their money.
Businesses
Trading 212 fees are very competitive since there is no custody and dealing charge. Their FX fees are also very low compared to the market average. We do not view positively the omission of key insurance aspects when communicating with investors on online forums. The heavy reliance on Contracts for Difference (CFDs) as a major source of revenue has also been scrutinized due to the complexity and the high risk it poses to retail investors.
Thank you for giving us 5-stars, Josh 😍We appreciate your kind words and we’re thrilled to hear that you find the app so valuable, regardless of your skill level. It’s our goal to provide a user-friendly experience for everyone. – Money transfer speed- Money conversion and holding idle cache- Trading at very low fees- Reliable notifications and alerts. Thank you for your kind words, Paul 😍We are thrilled to hear that you find our platform easy to use and appreciate the quick withdrawal process.
Specifically for Belgians, we also compared Trading 212 with other brokers if you want to dig deeper. Your assets are protected by the standard €20,000 European investor protection scheme as they are based in Cyprus. No, you’re unable to open children accounts or joint accounts on Trading 212. Let’s dig into the details of setting up your Trading 212 account for the first-time. Yes, as Trading 212 is a foreign account so you have to declare to the National Bank of Belgium as well as on your tax returns every year. Note that you’ll have to complete this manually as Trading 212 puts the burden on you as an investor and they have previously made errors in their tax reports.
We’re always looking for ways to improve our services and will take your suggestions into consideration for future updates. All account details are displayed when you go to Menu → Settings → My account. If you’re unable to initiate an ISA transfer or you have any questions about your request, please drop us a message in the open conversation or by updating your review. Good amount of information without disrupting user friendly interface.Overall I am very satisfied with Trading212. Finding the right investment opportunities is made easy with the app’s comprehensive search functionality. Users can search for stocks, ETFs, and other instruments using keywords, tickers, or industry categories.
Obviously you’re capital is at risk so even thought it’s a good platform don’t invest a lot if you don’t know what you’re doing / more than you’re prepared to lose. Just need a SIPP and it will be perfect so I can get away from Vanguard and their new SIPP fees. Trading 212 is designed to be user-friendly and accessible for investors of all levels, including beginner investors. The platform offers educational resources, demo accounts, and straightforward tools to help you start your trading journey confidently. Trading 212 supports various bank transfer methods, including direct bank transfers, SEPA (for European customers), and SWIFT (for international transfers).
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