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Trading 212 Broker Review

Trading 212 is a global CFD broker, but clients can also trade stocks and ETFs for free. The company was founded in 2004 and is now headquartered in London.

Broker is regulated by the British Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Bulgarian Financial Supervision Commission (FSC).  The broker currently has about 1.5 million clients and 3.5 billion euros of client assets worldwide. Its mobile trading app has been downloaded more than 14 billion times.

Account currencies: EUR USD
Minimum Deposit: 1 USD
Leverage: Varies depending on the instrument
Legal: Trading 212 is a trading name of Trading 212 UK Ltd, Trading 212 Markets Ltd.
Instruments: Shares, ETFs, CFDs (forex, stocks, ETFs, indices, commodities)

Account Types and Commissions

With Trading 212 you have a choice of 2 account types. 

Trading 212 Invest

Trading 212 Invest is for trading stocks, such as stocks and ETFs. If you choose this account type, that’s all you’ll be allowed to trade.

For beginners, it is a great account to start with because of the much lower risk involved.

Trading 212 CFD

Trading 212 CFD allows you to trade CFDs (contracts for difference) on products such as forex, stocks, indices and commodities. However, as with any other account, you are limited to trading only one type of security (in this case, a CFD).

Trading CFDs is for more experienced and risk-averse traders, because CFD trading involves leverage. You could lose a large percentage of your invested capital if you don’t know what you are doing.

Trading 212 Invest Commissions

Your Trading 212 Invest account allows you to trade stocks and ETFs for free. When you fund your account with a debit/credit card or a digital wallet, you pay no commission until the total amount deposited reaches 2,000 euros, but after that a 0.7% commission is charged. If you need to deposit a larger amount, it may be cheaper to do a bank transfer, which will cost 10 euros. But before you choose this option, find out how much your bank charges for a bank transfer.

There are no withdrawal fees for this type of account.

Trading 212 CFD Fees

If you choose this account, the cost of a Forex trade will depend on the underlying pair, as each pair has a different spread. But the broker will charge a standard conversion fee of 0.5%. You will not be charged anything for depositing money to your account, but the minimum deposit amount must be 10 euros. If you leave your position open overnight, you are charged a percentage SWAP.

Trading 212 Instruments

Trading 212 gives us the possibility to invest in many different instruments. You can trade stocks and shares, funds (such as ETFs, exchange-traded funds, indices (whole exchanges), commodities and currencies (foreign exchange).

Stocks

There are more than 10,000 stocks and shares. That’s well above average. They cover stock exchanges from all over the world, not only the United Kingdom and the United States, but also all the major European exchanges.  

Exchange traded funds (ETFs)

You can trade exchange traded funds, which are funds listed on a stock exchange (groups of stocks bundled into one investment).

There are thousands of ETFs, and they are all slightly different. They may represent a theme or industry, such as green energy companies, electric cars, or artificial intelligence companies.

Indices (stock exchanges).

You can also trade the stock exchange itself, that is, a group of stocks that represent the stock exchange. These can also be ETFs.

For example, the FTSE 100 index is the top 100 companies in the United Kingdom, which is often used to represent the country’s economy. The same applies to all stock exchanges around the world.

Commodities

Commodities are real things like gold and silver, as well as oil and other physical commodities, even things like grain. The broker has a wide variety of commodities.

Currency pairs

Currencies are very popular in trading. Often referred to as foreign currencies, you simply exchange one currency for another, such as GBP for USD (pounds sterling for dollars). Trading 212 has almost all the currencies you would like to trade.

Conclusion

Trading 212 is first and foremost a CFD broker regulated by numerous financial regulators.

On the positive side, the broker offers stocks and ETFs without commissions, and most CFD and non-trading commissions are also low. The account opening process is straightforward, and the trading platforms are user-friendly.

However, the broker has a limited product portfolio, with no popular asset classes such as bonds or options. We have found the commission for trading forex to be relatively high and we miss the US dollar as an account currency.

Trading 212 is a good choice for those interested in investing in stocks or leveraged CFD trading with an excellent platform. Since the company offers a demo account, feel free to give it a try.

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