Trading 212 Review 2024

Trust

Trading 212 Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

Here is what I discovered about Trading 212’s three entities:

• Trading 212 Markets Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC ranks as a Tier-1 regulator on our system.
• Trading 212 UK Ltd is authorized and regulated by UK’s Financial Conduct Authority (FCA). The FCA ranks as a Tier-1 regulator on our system.
• Trading 212 Ltd is authorized and regulated by Bulgaria’s Financial Supervision Commission (FSC). We rank the FSC as a Tier-1 regulator.

We have summarized the most essential aspects of Trading 212 in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. But licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand. In the case of Trading 212, all of the broker’s entities are based in Europe, which means compliance with ESMA’s Markets in Financial Instruments Directive (MiFID II). This ensures compliance with the strictest safety frameworks in the financial industry.

Listed below, you will read about the most essential safety policies and mechanisms for retail traders:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of Trading 212’s entities comply with this requirement.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All Trading 212 subsidiaries provide negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Trading 212 has issued an ‘excess of loss policy’ by Lloyds that is available to its clients, giving them coverage by up to EUR 1,000,000. Additionally, clients of the FCA-regulated entity are protected under FSCS by up to a maximum of GBP 85,000, whereas clients of the CySEC and FSC-regulated entities are protected by up to EUR 20,000 under the respective branches of the Investor Compensation Fund (ICF).
• Maximum leverage. Capping the maximum leverage limits the maximum market exposure to retail traders. Top-tier regulators usually allow a maximum leverage of 1:30, while offshore brokers can allow a maximum leverage of anywhere between 1:500 to 1:2000. In other words, the higher the leverage, the bigger the profits generated from winning trades, but also the bigger the losses incurred from losing trades. All of Trading 212’s entities afford a maximum leverage of 1:30 to retail traders.

Is Trading 212 Safe to Trade With?

Trading 212 has established itself as a trustworthy broker throughout the years. I opened my first-ever trading account with them over a decade ago when I was taking my first steps in the online trading industry. And ten years later, I can see that they stay committed as ever to ensuring their clients’ funds are protected.

The company’s three entities all have top-tier licensing. They comply with all essential safety requirements, even going so far as to provide additional protections in the form of private indemnity insurance. Trading 212 also has a ‘best execution policy’, ensuring client orders are always filled under the most favorable conditions.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Since its foundation two decades ago, Trading 212 has become the preferred choice of over 2 million traders who have invested more than EUR 3 billion in client assets. I found the information on the website abundant and readily available in the Legal documents section. Trading 212’s high transparency is also underpinned by the fact that the website contains plenty of information pertaining to the company’s owners and board of directors.

All brokers are legally required to display notices on their websites that trading is very risky, and some of them choose to bury their disclaimers somewhere near the bottom of their pages. Trading 212 not only doesn’t do that, but I was pleasantly surprised to see them doubling down on the risk factor during account creation. Trading 212 is very frank with its clients about the dangers of trading.

The broker is also very explicit about its various fees, even though I discovered some room for improvement. In particular, it would help if the broker displayed the current spread on the platform so that traders do not have to manually calculate it for each instrument. Also, the website does not display live spreads or swaps.

In summary, my research indicates that Trading 212 can be regarded as having a very good level of trust and stability due to the following factors:

• Authorized by top-tier regulators, ESMA-compliant
• Is very accountable with clear and detailed information
• Has issued additional protections in the form of private indemnity insurance

Fees

Trading 212’s Trading Fees

Trading 212’s Spreads

We tested Trading 212’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 24 April 2023.

Broken down by asset class, Trading 212 charges: low spreads on FX pairs; medium-to-high spreads on commodities (the recorded spread on gold is nearly double the industry average); low spreads on CFD shares; low-to-medium spreads on indices; and low spreads on cryptocurrencies.

Trading 212’s Swap Rates

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

Trading 212’s recorded swaps are quite elevated, though the broker is not entirely to blame. Rollover charges are subject to changing interest rates at the interbank level and, therefore, are beyond the direct control of the broker. Still, it is worth pointing out that Trading 212 does not offer swap-free trading via Islamic Accounts.

Trading 212’s Commissions

The broker affords commission-free trading. This is ideal for high-frequency trading and the implementation of intraday trading strategies. However, scalping is not permitted with Trading 212.

There is a 0.5% conversion fee (FX fee) for instruments priced in a different currency from the account’s base currency.

Trading 212’s Non-Trading Fees

Trading 212 does not charge dormant accounts with an inactivity fee. Deposits and withdrawals are also free.

Are Trading 212’s Fees Competitive?

The competitiveness of Trading 212’s fees depends on what is traded and when. My test showed that the broker’s conditions are especially favorable for high-frequency trading of FX pairs and CFD shares because there are no fixed commissions, only the spread.

Platforms and Tools

Trading 212’s platform has developed quite a bit since I first used it over a decade ago. It affords a sophisticated outlook into price action behavior and incorporates industry-standard features such as one-click trading. The platform gives traders an edge when it comes to order execution with its advanced solutions. For instance, traders can place OCO (one-cancels-the-other) orders to gain favorable entries into volatile markets.

Trading 212’s mobile app retains the usability of the web trader version, and it actually builds on it in some regards. It’s powered by the seamless Trading View, which is my personal choice for conducting complex technical analyses.

The app comprises a greater amount of technical indicators and drawing tools than the web trader version. However, the benefit of this variety is somewhat lessened by the fact that the app has to be run on low-resolution devices, making it harder to conduct probing technical analyses.

Automated and social trading are not available with Trading 212.

Trading 212’s Web Trader Platform

General Ease of Use

Trading 212’s platform has some very nifty features, which I found quite useful for both beginners and advanced traders, such as the market sentiment tool. It affords a quick glance into the discrepancy between buyers and sellers, as well as the current spot price in relation to the day’s low and high. This is particularly useful when it comes to determining potential rebounds and reversals.

The platform also allows traders to search for instruments by asset class, which is very helpful considering Trading 212’s vast array of instruments.

The upcoming earnings watchlist is another great tool, providing stock traders with a quick overview of stocks that are likely to register big price changes in the near future. This allows them to prepare for the upcoming releases.

Charts

The chart screen is crucially important because it represents price action, which must be illustrated clearly and concisely. Also, a platform needs to include multiple technical indicators and drawing tools so that traders can make sense of the underlying price movements.

What I like the most about the platform’s chart screen is that it can be manipulated quite easily. Tweaking price action up and down, left and right, is crucial for getting a clear sense of where the market might be headed next. Where I see room for improvement is with regards to the number of technical indicators and drawing tools made available.

Here is a breakdown of, what I consider, the most important components of Trading 212’s charts:

• 55 technical indicators. Trading 212’s platform consists of multiple oscillators, trend, volume, and volatility-based indicators. These can be used to carry out multifaceted examinations of price action behavior under different market conditions.
• 20 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns, to determine key support and resistance levels, and potential breakout or breakdown levels.
• 10 timeframes. Traders can also pick from 10 different timeframes, affording them a quick glance over currently unfolding trading opportunities in the short and long terms.
• 5 chart types. Price action can be represented as a line, bars, area, Heikn-Ashi, and candlesticks. This variety affords traders the opportunity to view price action behavior from multiple angles.

Orders

Listed below are the different order types available on Trading 212’s platform:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.
• OCO orders. One-cancels-the-other (OCO) orders, essentially, allow traders to automate their trading. An OCO order usually but not exclusively consists of one order to execute a long position at one price and another order to open a short position at another price. When one is filled, the other is terminated. That way, traders can use OCO orders to gain favourable entry when there is enough market commitment, underscored by the price action going a significant way in either direction.

Trading 212’s Mobile App Version

In my personal experience as a trader, I have always been more or less skeptical of trading apps. I recognize their utility in affording quick and easy access to one’s account on the go, but beyond that, I usually find them cumbersome, cramped, and not particularly useful for anything else. But in the case of Trading 212, I am happy to report that its app manages to retain the easy-to-navigate interface of the web trader version of the platform, and even build on it in some regards.

General Ease of Use

Trading 212’s proprietary app is powered by Trading View, which makes it even more versatile and practical. I especially liked the fact that, just like in the web trader version, the app affords traders plenty of vital information, such as market exposure and potential losses and gains before opening a trade. This gives traders a clearer understanding of what they stand to gain or lose from any given order before they place it.

The app as a whole is very easy to navigate, affording quick access to your trade account on the go.

Charts

Fundamentally, Trading 212’s app suffers, to a degree, from the same underlying problem that is prevalent in most other trading apps. Since it has to be run on small-screened devices, its charts get cramped very easily. Studying price action thus becomes more difficult.

Trading 212’s app comprises the following features:

• 104 technical indicators. The over 100 technical indicators, such as oscillators, trend-based, range-based, and volume-based, can be used to study price action behavior when the price is ranging or trending. These can also be applied to examine potential breakouts and reversals.
• 59 drawing tools. The app also incorporates a significant number of drawing tools, such as trend lines, channels, and Fibonacci retracement levels. These are used to outline specific patterns that appear periodically in the price action.
• 10 timeframes. The 10 different timeframes allow traders to study short- and long-term trading opportunities. This variety is essential for the implementation of a wide variety of different trading strategies – from intraday to position and day trading.
• 7 chart types. Price action can be represented in multiple ways, including as a line, bars, area, Heikn-Ashi, and candlesticks. This variety affords traders the possibility to examine price action behavior from different angles.

Orders

In my estimate, placing orders on Trading 212’s is both very easy and practical. Before opening a trade, you are presented with abundant information pertaining to the potential profits and losses from such a position. Being able to assess your profit/loss outlook is especially important in volatile environments.

The app also supports the following order types:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets actually filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price.
• OCO orders. One-cancels-the-other (OCO) orders, essentially, allow traders to automate their trading. An OCO order usually but not exclusively consists of one order to execute a long position at one price and another order to open a short position at another price. When one is filled, the other is terminated.

Tradable Instruments

I also quite liked Trading 212’s ‘Hotlist’ tool on the website. It helps traders sort out the best trading opportunities from the extensive array of instruments by observing the top raisers and fallers over a given period of time. This is yet another feature that is quite unique to the broker.

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Trading 212?

Listed below are the tradable instruments offered by Trading 212, broken down by asset class:

• 178 Currency Pairs (Majors, Minors, Exotic)
• 46 Commodities (Metals, Energy, Agriculture)
• 7000 CFD Shares and ETFs (U.S., UK, Europe, Australia, Asia)
• 20 Indices (U.S. (7), EU (8), UK (1), Australia (1), Japan (1), Spain (2))
• 15 Cryptocurrencies (Majors and Minors)

The biggest chunk of Trading 212’s offering is comprised of over 7000 share CFDs and ETFs from some of the biggest financial markets, such as the U.S., Europe, and Asia. The wide range of global stocks affords traders 24-hour exposure to different stock markets. I also appreciated the quite significant number of FX pairs and commodities made available, giving traders access to more exotic markets.

Customer Support

Traders can either turn to Trading 212’s Help Centre which contains answers to more general queries or submit a form request and wait for an answer over email. What I found very useful and unique to Trading 212 is its dedicated Community Forum, where traders can submit questions about the general service, trading and investing, and exchange know-how and strategies with other traders.

Trading 212’s Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I contacted Trading 212’s support on 24 April at 9.30 a.m. CET via their contact form, requesting additional information about their share CFDs offering and the base currencies available for retail accounts. They got back to me within 10 minutes, and the agent’s answers were straightforward and well-written so that even novice traders would be able to understand them.

Deposit and Withdrawal

Trading 212 Deposit Methods

Trading 212’s Withdrawal Methods

Trading 212 processes deposits and withdrawal requests within 3 business days, though transaction times may vary. The broker has no internal handling fees for payments to and from a trading account, though third-party banking fees may apply subject to the chosen payment method. Due to safety requirements, traders have to use different methods for deposits and withdrawals.

With regards to Trading 212 Invest accounts, funding your account will remain fee-free until you have deposited GBP 2,000 in total. Once this limit has been reached, a fee of 0.7% will apply thereafter.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. If you have modest means and plan to open smaller positions more frequently, then you should choose an account that does not have any fixed commissions per traded volume. In contrast, if you expect to place much larger orders less frequently, you should be more preoccupied with finding an account with tighter spreads and be less concerned with fixed commissions.

What Account Types Does Trading 212 Offer?

I collected data about all the account types offered by Trading 212 and arranged it in the table below, making it easy for you to compare.

The CFD account is intended for traders wanting to speculate on the price of leveraged products (trading on margin). I found the combination of commission-free trading and generally low floating spreads more suitable for high-frequency trading in the short term. However, it should be noted that the company does not allow scalping.

The Invest account type, as the name suggests, allows investors to pick from thousands of company stocks to invest in their future value. ISA accounts with Trading 212’s UK-based entity serve a similar role, except that investors do not have to pay capital gains tax.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Trading 212 Account Opening Process

I found the process of signing up with Trading 212 quite fast and straightforward. I have broken it down into these easy-to-follow steps for you:

• Step 1. Click the ‘Open Account’ button at the top-right corner of the main page.
• Step 2. Choose between Trading 212 Invest and Trading 212 CFD.
• Step 3. Select your country of residence.
• Step 4. Enter your email and choose a password.
• Step 5. Set up your account by stating your nationality, and personal details.
• Step 6. Verify your account by uploading proof of address and proof of ID.

Why is a Demo Account Important?

Trading 212’s demo account serves a twofold purpose. It introduces traders to the broker’s services and allows them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Trading 212 Supported Countries

Trading 212 Markets Ltd does not accept clients from the United States and Canada.

Research

Research Tools

I have broken down Trading 212’s research tools by type:

• Economic calendar. Trading 212’s economic calendar is pretty advanced, offering deeper insight than merely listing prominent upcoming events. I particularly liked the graphic design of the calendar, which helps emphasize the significance of a given market event and contextualize it against historical changes.
• News feed. The platform’s web trader and mobile app versions notify traders when there are impactful market releases, helping them understand changing volatility levels.
• Market sentiment tool. Also available from the platform, the proprietary market sentiment gauge is another great asset in a trader’s arsenal of tools. In addition to showing the discrepancy between buyers and sellers, it also displays the relation of the current spot price to the day’s low and high. I like using such tools for my own trading as gauges of likely reversals and rebounds from major support and resistance levels.
• Hotlist. Trading 212’s hotlist demonstrates how traders are positioning themselves on the market by displaying how many buyers or sellers have accumulated on a company’s stock over a given period of time. Such information about the top gainers and losers is very practical, as it can help traders forecast currently unfolding downtrends and uptrends.

Education

The bulk of Trading 212’s educational videos are dedicated to essential trading topics, such as technical and fundamental analyses. I also was pleasantly surprised to find a couple delving deeper into the psychology of trading, which is often neglected but supremely important for long-term success.

Trading 212 also has a few dozen written articles available in the ‘Learn’ portion of the website, however, they are dedicated solely to investing and are not particularly useful for traders. Probably the greatest learning asset of Trading 212 is its above-mentioned Community Form, where traders can learn from one another by sharing their experiences. I found this social platform particularly useful for helping beginners and even more advanced traders with their longer-term learning curves.

The Bottom Line

Two decades and 2 million clients after its foundation, Trading 212 remains one of the most prominent derivatives brokers in the online trading industry. Being the first to introduce commission-free stock trading in Europe, the broker is a true pioneer when it comes to offering sophisticated trading solutions.

I assessed the broker to be quite safe because all three entities have top-tier licensing in Europe and the UK and comply with MiFID 2. In addition to its robust licening and competitive pricing, Trading 212 has a very versatile proprietary trading platform, great tools, thousands of tradable instruments, and excellent investing solutions.

However, Trading 212’s educational and research content has a rather limited scope compared to other brokers. The broker would also benefit from incorporating additional third-party tools to make its offering more nuanced.

In summary, Trading 212 can be a reliable partner to both beginners and seasoned traders, all of whom can benefit from working with a well-established industry leader.

FAQ