Trading 212 Review
Trading212 is one of the most famous brokers in the world in 2019. It is known for offering CFD services (Contract for Difference) on the most commonly traded assets like Forex, commodities, indexes and stock market shares. Although, we consider Trading 212 to be a good broker, if you are not yet using their services, we think that it might be a good idea for you to take a closer look at Plus500 which does not charge comissions – click this link to go there. The reason we think that it is worth knowing Plus500 is that it is one of the leading CFDs provider at the moment. If you would like to learn more about Plus500, we invite you to visit their official website by clicking the button below (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).
In this review of Trading212 we will do a complete analysis of the elements that we consider investors should keep in mind. Before using an online broker’s services, traders should collect the most possible information about it, and we will be looking at some of this information starting with safety. After we have done that, we will take a closer look at the fees charged by Trading212 . We will also see what the alternatives to this broker are. To end this article, we will make a summary of our opinions concerning this online broker.
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Regulation and Safety: Is Trading 212 a scam?
The first thing you need to know is that Trading212 is the trademark of two companies named Avus Capital Uk Ltd. and Avus Capital Ltd. Being the property of another company is not something unique to Trading212, this is something which occurs with almost all online brokers. The great majority are property of other companies which are the ones registered with the supervisory and regulatory bodies. Now that we have established this information, we can take a closer look at how this broker is regulated. This regulation and oversight is what will tell us if Trading212 is to be trusted or not.
The parent companies of Trading212 are authorized and overseen by the FCA, which is one of the most well-known and reliable regulatory bodies in the world. No wonder, since it is the main regulatory body of the United Kingdom. While it is not impossible for a regulator to be fooled by a scam, the regulators at the FCA are among the best in the world. Also, being a broker from Bulgaria, it is registered with the Bulgarian Commission.
To all this we can add the fact that it complies with European regulations, because it has, among other things, insured accounts to augment the safety of its investors’ funds. With this insurance, the funds deposited by traders are not in the hands of the directors of the company. In the past, there have been cases of brokers who would use the money of their clients to offset their payments, but with this type of regulation, safety is greatly increased.
To close this section on safety, we should say that it is impossible to say for sure if a broker is totally safe, but we can say for certain that Trading212 has fulfilled all the safety requirements which can be expected of it in 2019.
As you undoubtedly know, trading has a cost. No broker allows investing for free, since on top of their need to cover operational costs, their intention is also to make a profit. Since trading costs money, if you would like to save yours, you should seek out an online broker which allows you to trade as cheaply as possible.
Luckily, in this day and age, very few brokers charge commissions for investing and Trading212 is not one of these. Previously, when you wanted to buy shares you would be charged a commission; when you were paid your dividends, you would be charged again, and when you sold your shares you would pay yet another commission. With products such as CFDs this practice has changed, and now you can trade with commodities such as oil or currencies on the Forex market without paying these types of commissions. However, Trading212 has a slight downside, to trade CFDs on stock shares you do still need to pay a small commission. You also have to pay fees which the broker receives in the form of spreads.
You will also have to pay a small commission when depositing money into your Trading212 account. This commission is between 0.7% and 3.5% depending on your chosen payment method.
With so many online brokers in existence in 2019, and with the help of technology, which not only reduces operational costs, but also allows companies to have clients from all around the world, the need to pay in order to invest seems to us like something from a bygone age. For this reason, although the commissions and fees charged by Trading212 are not high, they are higher than those of their competitors. We would like to reiterate that Plus500 does not charge any commissions for depositing funds or for trading, and their spreads are low. That having been said, if you would like to read more about their conditions, click here (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).
Surprisingly, Trading212’s trading platform is not MetaTrader 4, but rather a proprietary one. This is not to say that a proprietary platform is a bad thing, it may even be a positive thing if the platform is of good quality, but it is clear that the majority of CFD providers use the MetaTrader 4 platform.
The platform allows investing from literally anywhere in the world, since it can be accessed from a computer, but also from any smartphone with an iOs or Android operating system. Moreover, it offers trading signals and has advanced graphics which allow the user to perform technical analysis. It is even possible to place a trade from the graphics themselves – it resembles ninja trader in this respect. You are also able to perform several operations on the same trading pair, investing at both high and low points. This type of operation is known as scalping. It goes without saying that leverage is allowed, the level allowed does however vary with the asset being traded.
Recently, they have released traderbird, which is a social network created in order for investors to participate in, and to copy the trades of other investors. It is also possible to do the opposite, meaning that if you are making many successful trades, people may start copying you. And now that it has been integrated with the broker’s platform, it may be an interesting feature for those people interested in social trading.
We can summarize this point by saying that the Trading212 platform is very easy to use. It offers all the services which a broker is required to and with a good degree of quality. The trading tools available are those that are necessary and the platform provides all the graphical trading signals investors might require.
Before concluding section on the trading platform, we are required to mention its famous demo accounts. Trading212 is known for offering 10 000 euros to its clients to try investing with. Obviously this is a simulator, and all the money is virtual.
On the internet, it is possible to find all types of opinions. From people who had horrible experiences – with some people even saying that Trading212 is a scam – to people who have been delighted with the platform’s performance, praising all its aspects. In our opinion it is neither as bad or as good as is being claimed.
Our opinion of the platform is good. What’s more, we feel that the regulation to which this broker is subject is adequate. We also have a good opinion of something which we have not yet talked much about. The demo account offered by Trading212 is of good quality and you can use it for as long as you like.
Among the things that we have a bad opinion of, are the costs for investors. We don’t think it is a good idea to charge traders for investing funds, and we have found comments to this effect on various forum pages and reviews. Another point about which there have been many negative comments is the welcome bonus, or rather lack thereof. Trading212 has no welcome bonus and to receive one you will need to seek out an alternative online broker.
Surely reading this entire review has taken you some minutes to do. When doing an in-depth analysis, there are many aspects to take into account. For this reason, you may still be a little confused, and we would like to offer you a list of all the most salient positive and negative aspects of Trading212, to hopefully clarify things a little bit. At the end of this review is a link for the broker we spoke about earlier, one which we feel is worth getting to know.
- Famous for its demo account
- Maximum reliability
- Sophisticated trading platform
- Great selection of trading tools
- Social trading through traderbird
- High trading fees
- The CDFs for stock shares have commissions
It has come time to end this review, and although we have given our opinion of Trading212 all throughout this article, we think that it would be a good idea to summarize it again in a few words. Although Trading212 is a very good broker for investing in the Forex market, trading CFDs, stock shares and commodities, Plus500 is one of the leading platforms (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).