Trading 212 was launched in 2006 in Bulgaria by Ivan Ashminov and Borislav Nedialkov and is a broker that is now present in several countries. However, many wonder if it is a reliable broker or a scam. In this guide you can find our opinion about Trading 212. Find out about its features, products and services and the fees required to join the platform.
What is Trading 212?
The first online broker in the UK since 2016, Trading 212 allows buying and trading of shares and various financial products. With more than 1.5 million customers today, Trading 212 is an internationally recognized trading platform. Thanks to its application, this broker is available throughout Europe and across many countries around the world. He is now one of the most influential brokers.
Whether you are a beginner or have experience with the stock market, always remember to choose your trading platform carefully. This is very important for several reasons:
- Ensure the safety of the funds : make sure you choose a trading platform regulated by a well-known financial authority;
- Optimize your earnings : Choosing the wrong platform can cost you money. Hence the importance of favoring a reliable and high quality trading platform;
- Carry out your trades easily : a poor quality platform can prevent you from trading on time. To trade at the right time and minimize losses, make sure you choose a good trading platform;
- Find reliable information : A quality platform is essential to find reliable information in the markets. Allows you to make the right decisions at the right time;
- Trading with other traders : a good platform allows you to easily communicate with other traders to benefit from their advice.
What are the features of Trading 212?
Trading 212 address and country of registration
Trading 212 is a trading name representing Trading 212 UK Ltd, Trading 212 Markets Ltd. and Trading 212 Ltd. Present in several countries, it is registered:
- In England and Wales at 107 Cheapside, London EC2V 6DN. In these countries, Trading 212 UK Ltd is authorized and regulated by the Financial Conduct Authority, FCA, under registration number 609146;
- In Cyprus, where it is authorized and regulated by the Cyprus Financial Supervisory Commission, CYSEC. Trading 212 Markets Ltd. is registered there under registration number 398/21;
- In Bulgaria, where it is authorized and regulated by the Financial Control Commission. Trading 212 Ltd. is registered there under registration number RG-03-0237.
The products offered by Trading 212
A London-based fintech company, Trading 212 popularizes the financial markets by offering free, smart and easy-to-use apps. These apps allow anyone to trade stocks, currencies, ETFs and commodities.
Trading 212 offers investors a wide range of financial products as well as over 1,800 securities.
As it concerns the actions, a large number of financial securities from large companies are available on the platform. Among these companies we can mention Apple or Facebook.
The platform also allows for currency trading. Over 150 currencies, incl cryptocurrencies offered there.
In addition, Trading 212 allows forinvest in raw materials. As raw materials such as oil, cotton or corn.
ONE large number of stock indices is also available on the platform.
Finally, Trading 212 allows trading contracts for difference or CFDs. CFDs provide the opportunity to trade in the financial markets without going through the purchase or sale of an underlying asset.
Is it possible to have a PEA?
PEA is a savings product that many investors choose for stock market investments. This type of product allows you to take advantage of attractive tax conditions. However, it is not possible to have a PEA with Trading 2012.
Discover our ranking of share savings plans and choose the most suitable one for your situation
France: obligation to declare your trading account abroad
To minimize tax evasion, France, like many countries in the world, seeks to punish tax evaders. The state therefore requires that every single citizen declare their bank accounts and digital asset accounts. Including those registered abroad.
As an investor, you must therefore provide the tax authorities with your bank account abroad, linked to your trading company.
What are the Trading 212 fees?
Trading 212: trading fees
Trading 212 does not charge commission on trades. Its remuneration is based solely on spreads. In other words, he is remunerated according to the difference between a purchased asset and a sold asset. The cost of the spread, meanwhile, remains variable depending on the market price and the assets chosen.
Trade 212: what are the deposit and withdrawal fees?
Regardless of which payment method you use, Trading 212 will not charge you deposit fees. However, you may be charged a fee at the time of deposit, depending on your bank. These fees do not depend on the platform, only on your bank. This is why we advise you to find out which fees your bank applies before you make a deposit.
There is also no commission charged when you withdraw via your trading account. Trading 212 does not charge you any fees for deposits or withdrawals. However, a minimum payout amount must be observed:
- The minimum withdrawal amount is €1 on Trading 212 Invest. If the payment is made by bank transfer, it is possible from an amount of €10;
- On the other hand, the minimum withdrawal that can be made through Trading 212 CFDs is €10.
What are the taxes and fees with Trading 212?
It is necessary to report capital gains or losses realized on Trading 212 each year in May during the income statement.
Your annual tax return for Trading 212 (as well as any other potential foreign platforms) must include both income from dividends and income from capital gains.
The tax on your stock market income is therefore paid when you file your tax return. Since the introduction of the withholding tax, the dividend tax is paid as part of your deductions from your other sources of income.
What are the user reviews?
Its ease of use is one of the most important strong sides of Trading 212. This mobile platform offers several features and offers a simple and intuitive application. This also explains the fact that the majority of European traders use Trading 212. The application especially provides members with an intelligent management tool. The tool allows them to build a portfolio based on their financial goals.
However, some users notice some weak points. We can mention the occurrence of some crashes that can cause loss of money. Customer service is also in English, which is not necessarily always practical for most users. Among other things, there is a duty to indicate their account abroad for French tax residents. This can sometimes be a limitation.
What is Trading 212 worth compared to others (eToro, Trade Republic, etc.)?
Trade with 212 vs eToro
Both Trading 212 and eToro are reliable and quality brokers. These are two platforms that are suitable for beginners. In particular, they offer classes accessible to beginners to enrich their knowledge of finance at their own pace.
However, eToro remains a preferred choice for neophytes compared to the many features it offers.
However, the Trading 212 remains interesting for its very ergonomic use. It also offers the Autolnvest functionality, which allows investors to get an overall view of their portfolio. This feature gives you tools that make it easier to set up diversification.
Trade 212 vs. Trade Republic
Both platforms are both easy to use and intuitive. Nevertheless, some users report a greater interest in Trade Republic for several reasons. It offers a wider selection of stocks and has some of the lowest brokerage fees. The platform also offers an interesting feature which is programmed investment. This feature allows savers to design programmed investment plans from 10 euros.
Nevertheless, Trading 212 remains largely advantageous in terms of fees. In fact, the platform does not charge any brokerage fees regardless of the size of the order. It is also highly appreciated for its particularly ergonomic interface and its very user-friendly functions.
What is our opinion on Trading 212?
Trading 212 is an interesting platform for a number of reasons (fees, intuitive application, available assets, etc.). But it is not the platform we would recommend for investing in trading. We rather prefer other French offers (which avoids having to declare a foreign account every year to the French administration) which allows to benefit from a more favorable tax PEA, like Bourse Direct. There are also other online brokers that are more popular for the securities account, such as DEGIRO.
Trading 212 is not a scam. The platform is also one of the regulated online brokers. The platform is easy to use with features that allow beginners to invest safely. It offers many assets that you can invest in.