Trading 212 Review
From Football to Forex? Updated for 2021
Table of Contents
As you all know by now this blog is dedicated for Football Index related content, however, I’m also very interested in the stock market & it’s one of the main reasons why I joined FI in the first place!
With the transition to order books, I have decided to open up my journey in moving from Football to Forex. Alongside this, I’ve decided to complete a thorough review of Trading 212, which is definitely the best option for new traders that are looking to try their hand on the stockmarket. Let’s get into it.
I’ve been on the lookout for a proper trading platform for a while. It’s quite hard to come across a good site, if you actually type in ‘ Buy Stocks UK ‘ into Google, you’ll struggle to find a reputable platform.
Fortunately, I think I’ve found one in Trading 212.
If you aren’t exactly sure what Trading212 is, this post will contain a full Trading 212 Review which I have conducted after 6 months of using the trading platform. Let’s get into it.
Trading 212 is a trading platform, which has existed in the UK market since 2016, but they have been in other markets since 2005.
Fancy a Free Share, on us?
Trading212 is definitely the best app for beginners & you can get a Free Share if you register below for an account.
What to Expect from Trading212
Trading 212 offers users an easy platform to trade in over 1,800 different potential investments. There’s plenty of options for people to decide where to invest their money. Users can invest in everything from cryptocurrencies such as Bitcoin and Ethereum to traditional assets such as indices, commodities, and stocks. I loved this diverse investment range and I’m sure you will too.
Opening an Account with Trading 212
The process to open a Trading 212 account couldn’t be easier. You’ll be trading stocks and etfs in no time. Please note that if you plan to open an account you should be aware of the risks. Estimates suggest that 76% of all CFD accounts lose money. No trading platform can guarantee success.
While accounts can be opened almost anywhere in the world, those in the United States and Canada can’t open accounts at this time. Account restrictions also exist for users from American Samoa, Denmark, Bulgaria, Northern Cyprus, Guam, Puerto Rico, Turkey, the Northern Mariana Islands, and the United States Virgin Islands.
One thing that makes Trading 212 an excellent option for beginners is the low minimum deposit. You’ll need to deposit just £1 for a CFD account or £10 for an ISA or Invest account. This is a great choice for those who enjoy trading a small amount here and there.
Trading 212 offers three varieties of account. CFD Accounts are available everywhere and trade in CFDs. Invest Accounts are available everywhere and tread in stocks and ETFs. ISA Accounts are only available in the UK and trade stocks and ETFs. There’s also a demo account where you can practice trading with free trading.
How to Open An Account
All Trading 212 accounts are handled digitally. New accounts are generally verified within a business day. I ran into an error when uploading the documents needed, so mine took a little longer to open. Yours shouldn’t take too long though. (It turns out that I had entered my first name as ‘Thhomas’, so it was a mistake on my end).
Here are the steps to open an account and become an investor:
- Choose a country of residence and enter personal details such as date of birth and email address
- Add tax information and tax ID (if applicable)
- Choose an account type and base currency
- Answer the questions about your employment status, trading experience, and current financial situation
- Read and accept the terms of conditions and verify your account
You’ll need to provide some proof of identity to open your account, including:
- Proof of identity such as a driver’s license or passport
- Proof of address such as a bill or bank statement
Deposit and Withdrawal With Trading 212
Trading 212 offers fast and free withdrawals and deposits. The downside is that there isn’t enough choice for base currencies.
Account Base Currencies
The trading platform supports GPB, USD, EUR, RON, CHF, PLN, SEK, CZK, and NOK. However, you can only deposit or withdraw money in one or two options per country. For example, UK users can only use GPB, USD, and EUR.
The good news is that having the same currency across your bank and trading account means you don’t need to pay conversion fees.
Stock and ETF Fees
The fees – or lack thereof – makes it so much easier to become an investor with Trading 212. The platform offers ETF and stock trading with zero commission. You’ll need an investor account to trade these options. Investor accounts lose money if you don’t manage them properly.
The trading fees for CFD trading is relatively average, but the forex fees get pretty high – often more-than-double the cost on other DIY investing platforms.
It’s great that ETF and stock options are zero commission, but it would be nice if this courtesy extended to other options.
Non-Trading Fees & Inactivity
Some platforms charge non-trading fees, and Trading 212 is no exception. The good news is that the platform doesn’t charge account use, inactivity, and withdrawal fees.
However, Trading 212 does have some deposit fee. Deposits to Invest accounts through bank transfer are free, but you’ll have to pay a 0.7% deposit fee if you deposit over £2,000 into an Invest account with e-wallets, debit cards, and credit cards.
Trading 212 offers zero commission on currency conversions with real stocks or ETFs, but CFD and Forex trading comes with a 0.5% currency conversion fee. These fees apply when you trade assets denominated in another currency than your base currency.
Deposit Options & Fees
There are no deposit fees when depositing to a CFD account. There are also no fees when making a bank transfer deposit to an Invest account.
As before, there is a 0.7% deposit fee on deposits of over £2,000 made with credit cards, debit cards, and e-wallets including;
- Google Pay
- Apple Pay
- Carte Bleue
- Direct eBanking
Another problem I had with the platform was that not every e-wallet is available for every country. Not only that, but it’s sometimes difficult to tell which wallets you can and can’t use.
Bank transfers may take a few business days, but credit and debit card transfers are instant.
Withdrawal Options and Fees
One of the best things about making money when trading CFDs is that there are no withdrawal fees. You can withdraw your money using the same options for depositing money.
We tested how long it took for withdrawals to process and found it took one business day for a debit card withdrawal to process.
Here are the five simple steps to getting your money back from the trading platform;
- Log in
- Open “Manage Funds”
- Re-enter your password
- Choose a withdrawal amount
- Confirm the request
Please don’t forget that you may lose money when trading. Not every share or forex trading option you invest in will make money.
Trading 212 Website
It’s easy to use and manage your trading 212 account through the official website. The website is available in English, French, German, Dutch, Polish, Russian, Romanian, Italian, Spanish, Chinese, and Arabian.
Look and Feel
I enjoyed how user-friendly the website was. You should have no problem finding the stock or share you want to invest in, even if you’re a newbie trader.
Your Trading 212 CFD account comes with plenty of customization options too. You’ll have the freedom to change the appearance, position, and size of tabs to make them even more accessible.
Account Security and Login Process
The app offers two-step authentication for added security. The website is backed by the financial conduct authority, giving you peace of mind that Trading 212 can be trusted.
Trading 212 offers an easy-to-use search function that makes Trading 212 CFD a breeze. You can search directly for the product you want or use defined filters and cateogires to find the right share, stock, or index for you.
Placing Trading Orders
There are different order time limits and types depending on which account you have. Choosing to buy or sell the asset presents you with a trade ticket. The ticket includes all the information about the trade, including the swap rates, stamp duty, and margin for an added touch of user-friendly trading.
Alerts and Notifications
You’ll have the option to set price alerts or notifications with your account. I was happy to see this and had to mention it in the Trading 212 review. For example, you can set notifications about margin calls, news, and executed orders. These alerts show up in the form of a web pop-up. One downside is that it would be better to also receive them as an SMS or email message to ensure you get the message.
Fee and Portfolio Reports
Trading 212 has an easy to use reporting system for fees and your portfolio. Access these reports by clicking your username and choosing the “report” option. These reports show you your profit/loss, interest charged and earned, and your current balance – among other things.
Keep an eye on these reports as 76% of CFD accounts lose money. There is every possibility that you will lose money when trading.
Trading212 Mobile App
The website isn’t the only place you can engage in trading. The platform also has an excellent user-friendly mobile app. The app lets you do everything you can do on the website, including search for asset classes, set alerts, and buy and engage in share trading.
The mobile app is available for Android and iOS devices. It’s available in the same languages as the web version.
Look and Feel
The mobile app for Trading 212 is as sleek and user-friendly as the desktop website.
Account Security and Login Process
The app has the same two-factor authentication as the website. You can also use biometric authentication built into your phone for added security.
The search function works as well on the mobile app as it does the website. You’ll have no problem finding the CFD of your choice. The right investment makes a big difference in whether accounts lose money or not.
The ordering process is the same as for the web version.
Alerts and Notifications
Users can create push notifications but can’t create email and SMS notifications.
Available Markets & Products
The Trading 212 investment platform focuses mostly on trading CFD, cryptos, and forex options. You can also trade ETFs and real stocks, but you can’t invest in asset classes such as bonds, options, futures, and mutual bonds.
Please note that CFD investments are complex and have a high risk of losing money. As mentioned before, 76% of retail investor accounts lose money trading CFD on Trading 212. You should take the time to understand how CFD works and only invest money you can afford to avoid losing money when trading CFDs.
One downside of this trading platform is that you can’t manually set leverage levels. Choosing a manual leverage is one of the best ways to minimize the risk of trading. This is one reason you should always be careful when engaging in Trading 212 CFD trades as real investor accounts lose money when not handled carefully. Don’t be afraid to practice with the demo account to learn more about the ins and outs of CFD trading.
Stocks and ETFs
Trading 212 offers ETF and real stocks training. The ETF portfolio isn’t as extensive as you’d get with other providers, but there are still thousands of options.
Trading 212 Autoinvest
Not sure where to put your money? The autoinvest feature can help. This feature lets you create a diversified portfolio where money is automatically rebalanced for you. Deposits are automatically invested in your autoinvest portfolio. The app also re-invests profits back into the portfolio if your account makes money.
Trading 212 has excellent charting tools, but it doesn’t stand up to the competition when it comes to fundamental data, analysis, and news feeds.
The research tools are built into both the web version and mobile app.
The platform offers limited technical updates. I recommend you do some homework on your own instead of relying too much on Trading 212.
A major weakness of Trading 212 is that ther’s no fundamental analyses or fundamental data available. If you wanted to know historical United States unemployment rates or the P/E ratio of a particular stock, you’d need to check another source.
From one of the major weaknesses to one of the major strengths; Trading 212 has excellent charting options. You’ll have over 60 technical indicators to play with on this platform.
The trading platform has a limited news feed. You’ll only get basic information, statistics, news stories, and analysis. The company doesn’t maintain a team of in-house market analysts.
With that said, I appreciated having an economic calendar to hand. It’s nice to have the most important financial dates laid out for you.
Is Trading212 Customer Service Good?
The company has decent offerings when it comes to customer service. If your retail investor accounts lose money or you need help with anything else, the team will be on hand to help.
When I tested the support options for myself, I found I got relevant and straightforward answers quickly. The staff were all helpful, but it’s a shame that the website deosn’t have a live chat feature for instant help.
You can contact the Trading 212 customer support staff through email and phone. Email support gets the job done. I received a quick response to my emails.
Phone support is a little slower, at least when I tried it. I got the answers I needed in the end. It’s likely that the slow response times was due to a high rate of customer inquiries at the time.
While I do miss the live chat service, I like that the customer service department is at least open 24/7. You can always call on the phone if you need immediate help.
Trading 212 Tutorials & Education
The best trading platforms do more than let you trade stocks and shares – they teach you how to do it. The good news is that Trading 212 has plenty of written and video tutorials. These tutorials cover how to trade on the platform and the basic elements of trading. These features are great for beginners.
I recommend taking a look at the different educational materials on offer with Trading 212. These materials explain the ins and outs of trading and make an easy to use trading platform even easier to use.
Don’t forget to check out the demo account while you’re there. This demo account gives you the option of engaging in free trading without using your money. Minimize the high risk of losing money by learning more about how to invest wisely by trading through a demo account.
The Trading 212 invest platform was established in Bulgaria in 2006. It expanded and opened a London office in 2013. This London office is considered to be the headquarters for the company.
Trading 212 is fully regulated. It is regulated by the Financial Conduct Authority in the UK and by the Financial Supervision Commission in Bulgaria.
Is Trading 212 Safe to Use?
There are two things to check with any service to assess how safe you are – the background of the broker and how you are protected in the event something goes wrong.
- Trading 212 Background Information
The history of Trading 212 dates back to 2004. The longer the history and track record of a company, the more trustworthy they are. Only the best last the test of time.
That the company is regulated by both the FCA and FSC is another sign that Trading 212 can be trusted.
- How Does Trading 212 Protect Users?
The service offers different compensation options depending on your country of origin. Trading 212 is also careful in how it handles funds from users. The company keeps your funds separate from its business funds. Your money is protected under the Financial Services Compensation Scheme. If you live in the UK or Germany you’ll have an investor protection amount worth £85k, as offered by the Financial Conduct Authority.
Users in other countries are protected for up to 90% of their account, up to a maximum of €20,000 as per the Bulgarian Financial Supervision Commission.
Trading 212 also provides negative account balance protection to users.
Please note that trading any asset comes with risks. You should be aware of these risks before you start trading. Platform trading can minimize potential risks, but it doesn’t eliminate them. Over two-thirds of CFD accounts lose money. The same applies to other accounts. I highly recommend you use the demo account and do some research to get trading experience before making risky moves. Never invest more than you can afford to lose.
Trading 212 is an impressive trading platform for any investors looking for a user-friendly trading platform with everything beginners could need.
That you can test the platform for yourself through web and mobile with a demo account is a huge advantage that I would be remiss if I didn’t mention in this Trading 212 review. Trading is a serious risk and so it’s good to learn the ropes with free trading before putting real money into your account.
Some traders may be unhappy about the limitations, such as limitations on short-selling, but with over 1,800 assets on offer and plenty of transparency over charges and fees, this is one service I can’t help but recommend.
Trading 212 is primarily a forex and CFD broker with regulation from several financial supervisory authorities. The company offers comission-free trades with stocks and ETFs. Other fees on the website, such as non-trading fees, currency conversion, and CFD trading fees, are relatively low. The trading platform is as user-friendly as can be too.
I hope that you enjoyed this Trading 212 review, although it’s not strictly Football Index related I do want to tie in the similarities between Football Index and normal trading now, I’m specifically excited in discussing psychology behind trading alongside other mechanics.
Trading 212 is an excellent choice for anyone interested in trading. Register an account for yourself and see what Trading 212 has to offer. This concludes our Trading 212 Review.
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