Trading 212 Review UK 2024 – Pros & Cons

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trading 212 review

I’ve been using the Trading 212 app for more than a year and truly believe it’s one of the top investment apps out there.

Here is why:

It’s easy to use, you can trade without paying any fees, it includes an investment savings account, allows trading in different currencies, and offers lots of investment choices.

Plus, they have over 14 million users globally and you can set up an account in less than two minutes.

In my opinion, it has all the features that make a great trading platform. In this trading 212 review, we will go over all the details to help you decide if it is right for you.

Trading 212

Trading 212 has a high rating of 4.6 and you can start trading with just £1. It gives you the chance to choose from more than 10,000 stocks, funds, ETFs, and investment trusts.

They don’t charge any fees for trading and they have a really good automatic investing option.

Special Deal – You can get a free stock valued up to £100 when you put in £1 using our special link.

Advantages:

  • You can trade without paying fees.
  •  Your money earns interest even when you’re not investing it.
  •  They have an excellent app for your phone.
  •  Their investment savings account has won awards.

Disadvantage:

  • They do not offer a personal pension plan.

To ensure this trading 212 review is balanced, I have spent a whole year trying out the app to share what is good and what is not (though there is hardly anything negative).

Believe me, this is going to be the most thorough yet simple trading 212 review you will come across online!

What I really liked about Trading 212 is that using it on your phone or computer feels exactly the same.

Add to that the benefit of investing without any fees and having an investment savings account, and it’s a great deal.

Trading 212 – Main Features

Trading 212’s main features:

  • You do not have to pay to buy stocks.
  •  Opening or having a Stocks and Shares ISA Account is free.
  •  You can buy small parts of a stock, not just whole ones.
  •  They offer practice accounts to try investing without risk.
  •  You can use Trading 212 on your phone or online.
  •  Create your own mix of investments with ‘Investing pies’.
  •  Get help any time with their 24/7 live chat.
  •  Earn interest on money you have not invested yet.
  •  There is a big selection of funds, ETFs, and individual stocks to choose from.
  •  They do not charge extra for trading in different currencies.

Is Trading 212 good for beginners?

Trading 212 is a great choice for those just starting out. They have really focused on making a platform that’s straightforward and quick to begin using.

They have created lots of helpful videos and guides, plus they offer a practice account for people who want to try things out before investing real money.

I had my girlfriend try it out since she is new to trading and investing. She found it simple to figure out how to buy and sell shares.

She found the app easy to navigate and really liked how she could see how all her investments were doing with just one tap.

The only thing she found confusing was the difference between a CFD account and a regular investing account, which we’ll go into more detail about soon.

Who is Trading 212?

Trading 212 began as a Bulgarian company in 2005. It entered the UK market in 2016 and has grown significantly, now having over 350,000 users there.

The company is still led by its original founders, Ivan Ashminov and Borisov Nedialkov, which is often seen as a positive. They have also added the well-respected Mukid Chowdhury as CEO.

Trading 212 started off focusing on forex and CFD trading for individual customers but has since expanded to become a diverse trading platform offering various types of investments.

Trading 212 Review – Account Types

Trading 212 has three main types of investment accounts, which makes it very straightforward and user-friendly.

You can quickly switch between these accounts at the top of the app in no time, which is quite convenient.

Setting up an account is a breeze; it takes under two minutes. Just fill in some basic information and your national insurance number, and you’re ready to add funds and begin trading immediately.

And for depositing money, you have options like using a card, Apple Pay, or a bank transfer, which is great for flexibility.

Invest Account

The Trading 212 Invest account is basically a general investment account, known in the UK as a GIA.

You can pick from a huge selection of over 10,000 shares and ETFs on their platform, and you only need £1 to start investing, which is also the smallest amount you can deposit.

The best part about this account is that trading is free unless you are dealing with money in a different currency. In that case, you pay a tiny fee for currency exchange, just 0.15%, which is less than what eToro charges at 0.5%.

However, you need to pay capital gains tax on any profits above £6,000 in a tax year with this account. So, if you do not already have an ISA, it is a good idea to open one first, use up your allowance there, and then go for a GIA.

Personally, I prefer starting with a GIA to test things out and see if I like the platform. That is exactly what I did with Trading 212 before I decided to open an ISA with them.

Trading 212 Stocks and Shares ISA trading 212 review

The Trading 212 ISA is a top pick for do-it-yourself investors these days.

You’re allowed to put in as much as £20,000 every tax year, and the best part is, you don’t have to pay capital gains tax on any money you make, whether it’s profit, interest, or dividends.

It works a lot like the regular investment account, where you do not pay to trade. However, if you are buying stocks from another country, like the US, from the UK, there is a tiny fee for changing currencies, just 0.15%.

I am a big fan of how fast and simple it is to use. I often use the ‘Trading 212 pies’ feature, which lets you mix and match stocks to create a personalized fund.

For instance, I have three different ‘pies’: one with tech companies, another with UK companies, and a third focused on green energy.

You can decide how much to invest in each company, making sure the total adds up to 100%. It is a really smart feature, in my view.

Moreover, finally, any money you add to your account but do not invest right away will still earn interest, which is a nice bonus.

CFD Account

Trading 212’s CFD account is designed for those who have more experience in investing. In simple terms, CFDs are like placing a bet on whether the price of something will go up or down.

You can make predictions on the movement of various items like commodities, currencies, or even company stocks. However, this is a risky approach and needs a good deal of know-how.

Trading 212 cautions that about 78% of people who trade CFDs end up losing money, so it is important to be careful with this kind of account.

Just like with the other accounts, there’s a fee of 0.5% for trading in currencies other than your own. There’s also what’s called a ‘spread fee’, which is the gap between the buying price and the selling price for currency exchanges.

Demo Account

The practice account, also called a demo account on Trading 212, is perfect for anyone who wants to try out the platform or practice their investment strategies.

You get £5,000 in ‘demo’ funds to use, and you can invest it just like you would in a real invest or ISA account.

To find it, just go to the main menu, scroll down to the bottom, and look for the ‘switch to practice’ option.

Moreover, if you want to go back to trading with real money, it’s just as simple—just click the big blue button to switch.

Trading 212 Pro

Trading 212 Pro is aimed at seasoned investors who want more advanced options for forex trading. To qualify, you should have at least 500,000 euros in your account and a minimum of one year’s experience in the financial industry.

There is no cost to upgrade, but it is important to remember that this account type is not suitable for beginners. It is designed for those who already have investing experience.

Some Questions

What is Trading 212? 

Trading 212 is an online trading platform that offers a variety of financial instruments for trading, including stocks, forex, and commodities.

How does Trading 212 stand out? 

The platform is known for its user-friendly interface and the ability to facilitate trading without commission fees, making it accessible for beginners and experienced traders alike.

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