Trading 212 Review

Introduction

Trading 212 stands out as a CFD broker and is overseen by various financial regulatory bodies. The platform offers zero-commission stocks and ETFs, and its CFD and non-trading fees are generally competitive. The process to set up an account is straightforward, and its trading interfaces are intuitive.

Those keen on diving into equity investments or exploring leveraged CFD trading with a top-notch platform will find Trading 212 a good option to consider. Given its demo account feature, it’s worth taking it for a spin.

Trading 212 Pros & Cons

Pros

• Intuitive and user-friendly web trading platform and mobile app makes trading easy.
• Wide selection of 1000+ trading symbols for CFD and forex.
• Supports multiple exotic FX pairs, which is great if you’re a real forex geek.
• Trading real stocks and ETFs comes without any commission fees.
• The account opening process is streamlined and hassle-free so you can easily and quickly get started.
• The trading platforms offered are user-friendly and highly efficient.

Cons

• A somewhat narrow product portfolio so you might not have all the trading options you want.
• Notably high foreign exchange fees compared to other platforms.
• The unavailability of USD as an account currency option.
• The mobile app offers news only pertaining to economic calendar events, lacking broader headlines.
• On the web platform, research mostly consists of brief snippet-like updates, with sentiment data being the primary exception.
• While Trading 212 boasts an extensive video library, there is a noticeable scarcity of written educational articles.
• The available educational videos aren’t as abundant as what leading forex brokers provide for novices.

Where Trading 212 Shines

• Unique platform: Trading 212 employs its own specialized platforms tailored for Android and iOS smart devices, as well as for computers through its web-based interface. Feedback on Google Play and the App Store is notably positive, emphasizing user-friendliness.
  
  Unlike mainstream platforms like MT4 or MT5, Trading 212 doesn’t support automated trading systems or custom indicators. Nevertheless, through a collaboration with the ProQuant app, traders can create or emulate automated scripts through an API key.
  
• Beginner-friendly: Regardless of the platform you opt for, there’s invariably an adjustment period in mastering trading and investing. Yet, Trading 212 stands out for its intuitiveness and ease of use.
  
  Navigating and trading stocks and funds on it is a breeze, organized neatly for convenience. Furthermore, it boasts an impressive educational segment, packed with enlightening videos on a plethora of topics, including the likes of technical analysis (chart evaluations).
  
• Professional-level leverage: Trading 212 adheres to regulations, capping the leverage at 1:30 for retail investors. However, for seasoned traders, the leverage can reach up to 1:500. To be recognized as a professional trader, one must meet specific requirements, but this might result in the loss of some perks, like FSCS coverage.
  
  The leverage offered by Trading 212 also varies based on the trading instrument. For instance, exotic currency pairs have more restrictive leverage. Detailed leverage information for each instrument can be found on our trading conditions page.
  

Where Trading 212 Falls Short

• Limited selection: One of its most noticeable limitations is the lack of a wide-ranging product portfolio, particularly missing out on popular asset classes like bonds or options. These asset classes are essential for many investors looking to diversify their portfolios or to engage in more complex investment strategies.
• App Selection: Some traders will be highly familiar with the MetaTrader 4 or MetaTrader 5 apps, and Trading 212 does not offer either. It can mean that a trader’s established trading workflow may not be compatible with a Trading 212 account – but that said, some traders might find Trading 212’s proprietary solution a better fit.

What is Trading 212 Best For?

New traders. For those keen on delving into equities or exploring leveraged CFD offerings, Trading 212 stands out with its stellar trading interface that can be just that bit easier to work with than MetaTrader – and it comes with the added benefit of a demo account so it’s easy to experiment.

Trading 212 at a Glance

Detailed Ratings

Funding: (4/5) Trading 212 offers a variety of accessible funding options such as bank transfers, credit/debit cards, Skrill, Dotpay, Giropay, SafetyPay, Carte Bleue, Mister Cash, Direct eBanking, CashU, and UnionPay. With such a diverse selection, there’s likely an option that suits your needs. They explicitly do not allow cash deposits directly into their bank.

Some of these options might be restricted based on your country, and not all methods are available for both deposits and withdrawals. When you choose to use a credit or debit card, funds typically reflect in your account within 10 minutes of approval. However, bank transfers might require 2-3 business days.

For withdrawals, expect a timeframe of 2-3 business days to see funds in your bank or on your card. Some methods, like specific online processors, can process instantly. Trading 212 does not impose any charges or commissions for withdrawals

Fees: (3.5/5) Trading 212 provides two distinct account options: ‘Invest’ for share transactions and ‘CFD’ for dealing in CFDs. The initial deposit for the ‘Invest’ category stands at 1 euro, in contrast to the 10 euro requisite for the ‘CFD’ category. This analysis delves into the details of the CFD option. For insights on the ‘Invest’ platform, refer to our U.K. StockBrokers.com assessment of Trading 212.

While Trading 212 boasts no commission charges, one should note the necessity of paying a spread for CFDs and forex transactions. A noticeable gap in their information is the absence of an average spread, crucial for understanding their rates for currency pairs like EUR/USD. The lack of such pivotal data somewhat hinders its standing, especially when benchmarked against top-tier CFD and forex brokers.

Regulation and safety (4/5): Trading 212 functions through three distinct entities: Trading 212 Ltd is overseen by the Financial Supervision Commission of Bulgaria, Trading 212 UK Ltd has received authorization and is under the purview of the Financial Conduct Authority (FCA), Trading 212 Markets Ltd is licensed and supervised by the Cyprus Securities and Exchange Commission, bearing license number 398/21.

Adhering to the latest European Union regulations, Trading 212 aligns with guidelines set by the European Securities and Markets Authority (ESMA). Their specialists verify that the firm possesses robust financial safeguards to maintain its regulatory adherence.

Furthermore, day traders benefit from negative balance safeguards, isolated client assets, and eligibility for investor compensation initiatives.

Other Trading 212 Features You Should Know

• Calendar: Trading 212 offers a trading calendar that encompasses all events that might influence the markets and your financial investments.
  
  For example, you can pinpoint the upcoming Bank of England base rate announcement or determine the date for the next FOMC meeting (Federal Open Market Committee) – the U.S. counterpart responsible for setting interest rates. There’s a wealth of information available. It’s genuinely invaluable.
  
• Education: Trading 212 boasts a diverse range of educational content, with over 170 videos showcased on their YouTube channel. Though in-depth articles and advanced resources can only be found in the help center, the platform lacks archived webinars.
  
  Most of Trading 212’s educational content is video-based and can be accessed on both its web and mobile interfaces. While there are some discussions in its community forum and FAQs in the assistance section, the platform doesn’t present many educational articles.
  
• Social features: 212 Hot List covers stock rankings that highlight top performers and underachievers based on the number of individual traders involved. You can monitor the portfolio choices of fellow traders to enhance your investment strategy.
  
  Social Communities allows you to dive into a dynamic feed and discussion platform offering trade concepts, insights, and inquiries from individual investors. Tailor your feed to align with your preferences or engage with ‘groups’ centered on crucial subjects of interest.

• Demo account: Once you sign up, a practice account is instantly set up for you. Users are granted $50,000 in virtual funds and experience conditions identical to live trading. Both account types operate on the same server without any limitations so your demo account gives you the full Trading 212 experience. It’s valid for 30 days.

• Withdrawing funds: Withdrawal methods align with deposit options. If a client deposits through a specific method on Trading 212, the funds will be returned using that same method. Should multiple deposit methods be used, the broker will revert the funds back to the client’s credit/debit card. Withdrawals come with no additional fees.
  
  To initiate a withdrawal, users should navigate to the account settings within the Trading 212 platform. Once a request is made, Trading 212 typically transfers the funds to the investor’s bank account or card in approximately 2 to 3 days. Some methods might be quicker, though the precise duration is not specified.

Conclusion: Is Trading 212 Right for You?

Renowned for its cutting-edge mobile trading application, Trading 212 provides a user-friendly suite of trading platforms tailored for CFD and share trading, complemented by an expansive array of forex pairs.

Yet, even with its intuitive interface and diverse set of symbols, the absence of sophisticated trading tools and limited research resources constrain Trading 212’s aspirations of being deemed the leading broker.

Trading 212 operates as a CFD broker, with oversight from three regulatory bodies including the UK’s FCA, Bulgaria’s FSC, and Cyprus’s CySEC. It offers clients the advantage of commission-free stock and ETF transactions.

The process of account creation is seamless, digital, and expedient. Both web and mobile platforms of Trading 212 boast well-structured designs and user-centric features, making it an ideal option for novice traders.