Trading 212 review: This company was established in 2004 in Bulgaria and is operated by the Cypriot company Trading 212 Markets LTD. In addition to the Bulgarian stock exchange, it also operates on the stock exchange in Cyprus and London. In recent years, there has been a lot of discussion about this company. The main reason is that it offers trading of so-called fractional shares, opening trading opportunities to almost every investor. The company’s fees are very friendly and, of course, it offers not only trading of fractional shares, but also investing in ETF funds and CFD contracts.
Table of Content – Trading 212 Review
Trading 212 in brief
Trading212 is an online trading platform that allows you to invest in stocks, ETFs, CFDs and currency pairs. The platform is available in several languages, including Czech, and offers low fees and easy operation.
The main advantages of the Trading212 platform:
- Low fees: The Trading212 platform does not charge any fees to buy, sell or hold stocks and ETFs. It charges a fee of 0.15% for currency pairs.
- Ease of use: The Trading212 platform is easy to use and intuitive. It is available in several languages, including Czech.
- Wide range of investment products: The Trading212 platform offers a wide range of investment products, including stocks, ETFs, CFDs and currency pairs.
Investment options
The Trading212 platform offers investments in the following products:
- Shares: Shares are securities that represent a stake in a company.
- ETFs: ETFs are exchange-traded funds that track a specific index or sector.
- CFDs: CFDs are contracts for difference that allow you to trade securities, currencies or commodities without having to physically own them.
- Currency pairs: Currency pairs are combinations of two currencies whose price changes against each other.
Regulation of Trading 212
Trading 212 is regulated by different authorities depending on its location:
- UK: Trading 212 UK Ltd. is authorized and regulated by the Financial Conduct Authority (FCA) under firm reference number 609146. The FCA is a top-tier regulator in the UK, which means your investments are protected under the Financial Services Compensation Scheme (FSCS) up to £85,000.
- Australia: Trading 212 AU Pty Ltd is authorized and regulated by the Australian Securities and Investments Commission (ASIC) under license number 541122.
This regulation ensures some level of consumer protection and adherence to financial standards. For example, the FCA also sets leverage limits on Contracts for Difference (CFDs) to manage risk for retail traders.
Trading 212 Trust & Regulation page: Trust & Regulation – Trading 212: https://helpcentre.trading212.com/
As we already mention Trading 212 is a well regulated broker and trading with them is completely safe.
Trading platforms
Trading212 uses a classic web browser for investing. The client does not need to download any application and simply logs in via their computer or anywhere else and via any device. Of course, there is also a mobile application that uses all the modern instruments that naturally belong to such a progressive company as Trading212 undoubtedly is.
Both of these options are completely free. Therefore, the client can only explore options for the time being before investing. In addition, the mobile phone application is very highly rated. Mainly thanks to its timeless design, but also advanced functions such as graphs.
If you were worried that the app might be complicated (considering the features it offers), the opposite is true. The application is very intuitive and guides you step by step to the desired result. Orders can be executed (as with other investment companies) in several ways. One of them is, for example, “Market”, when it makes a purchase immediately after sending at a current and affordable price. Another is the “limit”, when the price drops to an acceptable value, or, for example, a “stop”, when the price rises to the desired value. The last option is the “stop limit” action – here the order is switched to a limit when the price rises to the desired level.
Trading conditions and fees
It has already been said several times that TRADING212 has very low and client acceptable fees. Personally, I have to rate very positively the fact that the fees he charges are not difficult to understand and even a complete beginner knows exactly how much he will pay for his particular business. Such positives cannot be said about some competing companies.
One of the things that is a real rarity in the investment market is the fact that TRADING212 does not charge any withdrawal fees. You don’t even have to pay for deposits of your funds. However, there is a small condition here. The deposit must be made via bank transfer. I don’t see this as a problem and I even think that making transfers via bank transfer is very easy and for the average client who uses their bank’s mobile app, it’s no problem at all.
This broker also does not charge any inactivity fee. There is no single broker on the market in this, however it is worth mentioning that some investment companies charge very high fees if the client does not make any trades in a given month. Example: So if I decide to go on vacation and take time off from the world of finance and from 1.9.-30.9. I do not make any trade (deposit, withdrawal, transfer), a fixed amount will be deducted from my account with the broker. BUT…. At TRADING212, we are not really in danger of that. So de facto we can trade even just once a year.
Let’s go back to deposits for a moment. These are completely free and in any amount for transfers from a bank account. Cards and electronic wallets are also free, but BEWARE, only up to $2,000. If you exceed this value, you pay a fee of 0.7% of the deposit.
However, the good “fee” policy of this company certainly does not end there. Very often, investment firms charge a so-called commission fee. In other words: “trade brokerage fee”. Of course, at TRADING212 it is again free. So really good news especially for those who like to trade more often and in smaller amounts.
Indeed, TRADING212 broker is one of the cheapest brokers on the Czech market. However, of course, there are definitely some fees. If we were to talk about forex fees, here the fees are average compared to other companies on the market. Spreads are higher for other tradable instruments.
At the end of the “fees” topic, some factual information still needs to be mentioned. With TRADING212, you can trade from about 30 CZK – i.e. from 1 EUR. The minimum deposit value is 200 CZK – i.e. 10 EUR. You can deposit your funds via bank transfer, credit and debit cards, Google pay, Apple pay, iDeal, DotPay, GiroPay, Sofort and more…
The last trade conditions I would like to mention are
- currency conversion fee’, which is 0.15%.
- leaving an open position for the next day – free of charge
- zero commission fees
Trading 212 Website features
Deposit/withdrawal methods and fees
Trading 212 accepts payments with SafetyPay, Skrill, Giropay, Dotpay, Carte Bleue, Mister Cash, Direct eBanking, CashU and UnionPay, as well as bank wire and credit or debit cards like MasterCard, Maestro, VISA and VISA Electron. The minimum deposit requirement is set at $29 and withdraw process takes up to 2 to 3 business days.
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Trading 212 Review: Pros and Cons
One could speculate at length about which broker is good and which is bad. As with everything in the world, trading is not just black and white. A different method may suit each investor. Some rely on low fees, while others rely on professional communication and an individual approach (this mainly applies to large investors who have assets greater than EUR 250,000). It is therefore necessary to realize what kind of investor I actually am, what funds I will use, how often I will trade and what is a priority for me.
If you are clear about this, a few of these basic points can help you, which highlight the advantages of TRADING212, as well as points which state the disadvantages that may come with doing business with them. I myself am surprised that with this company the number of advantages greatly exceeds the disadvantages of trading.
So let’s take a look at it…
Advantages
- Zero or very small and transparent trading fees
- Deposits possible from EUR 1 for the INVEST option, from EUR 10 for CFDs
- No commission fees for the broker
- The company’s platform is very elaborate, but despite that it is simple and client-friendly
- Customer support at the TOP level (they communicate 24 hours a day, 7 days a week)
- Customer support response time 29 seconds
- The possibility of an educational platform (click through the website of the company www.trading212.com on YouTube)
- There is no double taxation of US dividends
- Analytical and trading tools at a very high level
- Trading security is a priority for the company
- Simple and pleasant website of the company, on which the client can find all information clearly and in one place
Disadvantages
- Compared to the competition, some spreads are slightly higher (this is not a rule, however, you need to look at the specific product we want to trade)
- TRADING212 does not offer the possibility of working with cryptocurrencies
- The company’s website is only in English
- This one is closely related to the previous point – there is no support in the Czech language
Trading 212 review: In conclusion
I think everything important that should influence your decision whether or not to start trading with TRADING212 has already been said. The decision is yours..
Clients who do not have sufficient knowledge of the English language may be a little disappointed. However, google translate does a pretty good job of translating even for these clients.
Those who speak English well will surely be delighted. The company offers a large number of business opportunities with very little or no fees at all. The website is simple and will definitely not distract from the important thing, which is your money.
