Trading 212 is an online CFD and FX broker established back in 2006 and currently authorised by the UK Financial Conduct Authority under Reference number: 609146 (as Trading 212 UK Limited) and regulated by the Bulgarian Financial Supervision Commission (FSC) under Register number RG-03-0237 (as Trading 212 Ltd.).
Editor’s Note: Why Trading 212 Sucks In 50 Words
The main reason for concern is their marketing or rather the people’s complaints about their advertisements. Most of the words used cannot be reproduced here, although we are pretty loose with the usage of “dirty” words throughout our website. Let me tell you, people are flat out swearing and wishing Trading 212 all sorts of bad things, it’s not the regular, decent complaint.
Why Trading 212 Doesn’t Suck In 50 Words
They’ve weathered the storm and managed to “survive” since 2006 and got regulated in 2014 so they’ve shown adaptability and persistence despite some (a lot of) negativity. That being said, regulation remains the main reason why they don’t suck, but I wonder if it’s enough.
Is Trading 212 A Scam?
As a rule of thumb, a regulated broker is usually free from scam suspicions, however, that doesn’t automatically make it a great broker or one that you should immediately invest in. There’s an online wave of client aggression directed towards Trading 212 and this is mainly because of their aggressive marketing and annoying ads that pop up everywhere. But again, this doesn’t make them a scam, although it’s not a positive thing either.
On their homepage, Trading212 claims over 12 million downloads for their mobile app, which is rated by 40K+ customers. Heading to the App Store, we could find just above 130 people who’ve rated them (number of downloads is not available) and on Google Play, they have almost 40K ratings and over 5 million downloads. I don’t know where the other 7 million claimed downloads are. Maybe on iOS? Doubtfully. Ok, so the numbers don’t add up, but does this make them a scam? We cannot say for sure but let’s not forget this is a regulated brokerage.
Should I Open An Account With Trading 212?
With a long time in business, a web-based platform developed in house and regulation from two financial watchdogs, you would think that Trading212 is the perfect choice for any trader. However, they don’t offer the most popular trading platform – Meta Trader 4 – which means that you won’t be able to use any of your custom indicators or Expert Advisors. This may or may not be a deal breaker, depending on your preferences but in my opinion, any major broker should offer this platform.
Accounts start at $100, without being tied to a structure (i.e. they don’t have tiers of named accounts) but you will get separate ways of trading: on one hand they offer leveraged CFD trading on currencies, cryptocurrencies, stocks, indices, and commodities and on the other hand, you can invest in Stocks & ETFs, with zero commission. Commission-Free trading is available for clients from the UK and Germany.
In the Education section, they offer a series of videos, tutorials and Daily analysis for most high-profile trading instruments. Depending on your level of trading experience, you will find these more or less exciting and helpful but it’s good to know the daily analysis is actually daily.
All in all, the negative sentiment surrounding Trading 212 online doesn’t seem fully justified. The trading conditions are fair, they are fully regulated and we couldn’t find any hidden fees or weird terms and conditions. That being said, you should always conduct your own research on any broker that you want to invest in. Maybe we missed something or maybe some of their trading conditions don’t seem fair to you. As they say, different strokes for different folks.
The two financial regulators list the addresses 107 Cheapside, London, EC2V 6DN and 1756 Sofia, Lachezar Stanchev Str., Litex Tower, fl.10, Bulgaria. The brokerage can be contacted at email [email protected] and phone (+44) 20 3769 9897 (UK).
Trading 212 Complaints
As mentioned already, the recurring complaint is about Trading212’s marketing. People say they can’t watch YouTube anymore without their videos being interrupted countless times by a Trading 212 ad and the worst part is that some of the complainers say they are not even traders. I can imagine how that can be annoying but at least we couldn’t find a worrying number of complaints about price manipulation or failed withdrawals.
Trading 212 Withdrawal
The accepted methods are Skrill, Dotpay, Giropay, SafetyPay, Carte Bleue, Mister Cash, Direct eBanking, CashU and UnionPay, bank transfers, and credit/debit cards. The time it takes to process the transaction is usually 2 – 3 business days and the fee is 5 EUR (applied by Trading212’s bank but your bank may add more).
Trading 212 Extras
Commission-free investments (stocks and ETFs) for UK and German customers! For the robot trading enthusiasts, Trading 212 offers a solution called ProQuant, available on the trading platform. We have not tried this robot and cannot vouch for its performance.
Trading 212 Ratings
User Friendliness 14/20
The trading platform is a bit too complicated, especially for a web-based solution (usually these are very easy to use) and I found myself searching too long for features that should be in plain sight. Demo accounts are available, as well as mobile apps for both major operating systems. The website is translated into 11 languages.
Range Of Markets, Spreads And Leverage 16/20
The choice of assets is huge and covers all asset classes – CFDs on currencies, cryptocurrencies (Bitcoin, Ethereum, Monero, Ripple, Litecoin and more), commodities, indices, stocks, as well as investing in stocks and ETFs. The spreads are floating so we cannot give an exact number because it changes depending on market conditions. The leverage goes up to 1:30 for retail clients (it has been lowered to comply with ESMA rules).
Fees And Support 16/20
Trading 212 doesn’t charge to open an account, just like basically every broker out there but to withdraw the client will have to pay a 5 EUR fee charged by the broker’s bank (plus anything else that the client’s bank may charge). There is also an inactivity fee of 9 USD/EUR/GBP for accounts that have been inactive for 6 months. Support was surprisingly fast to respond and answered all questions promptly.
Deposits And Withdrawals 16/20
Minimum amounts for both deposits and withdrawals are 100 USD/EUR/GBP and the methods are Skrill, Dotpay, Giropay, SafetyPay, Carte Bleue, Mister Cash, Direct eBanking, CashU and UnionPay, bank transfers, and credit/debit cards. Withdrawals take 2-3 business days to process and deposits are usually faster, depending on the method.
Website Extras 15/20
Robot trading via ProQuant app and commission-free investments in Stocks and ETFs. Some nice features, especially if you are interested in hands-free trading and investing as opposed to CFD trading.
Trading 212 Overall Ratings (77) + Regulated (+3): 80/100