Trading 212 review

Trading 212 is a really popular trading app in the UK, offering an individual savings account (ISA) and letting you trade in a huge range of different types of assets, from standard stocks and shares to the riskier types such as contracts for difference (CFDs). We’ve compiled the key features of Trading 212, including details about its demo platform, what Trading 212 customers said in our satisfaction survey and the pros and cons of Trading 212.

What products does Trading 212 have?

Stocks and shares ISA
Lifetime ISA (LISA)
Pension
Keep in mind	Capital at risk. 83% of retail CFD accounts lose money
	More Info

Trading 212 has three different products available:

• Trading 212 Invest. A general investment account with zero fees and zero commission. This might be what you’d use if you’d used up your ISA allowance of £20,000 (read our full stocks and shares ISA guide if you need to get clued up on ISAs).
• Trading 212 ISA. This is the same as the invest account, but it’s got a tax-free ISA wrapper that means you can invest up to £20,000 in the 2023/2024 financial year without paying tax on your profits.
• Trading 212 CFD. This is a much riskier way of trading — CFDs allow you to trade contracts based on the movements of the stocks. The key thing is that your money is leveraged so you could gain or lose much more than you’re putting in.

Trading 212 Invest

Trading 212’s Invest product allows you to invest in stocks and shares without any commission. Here are the key features:

• Start with as little as £1.
• No commission.
• Unlimited instant trades.
• Fractional shares are available. These are exactly what they say on the tin – if a stock is priced at £1,000, you can buy a fraction of that, making it more affordable.

Trading 212 ISA (individual savings account)

Trading 212’s stocks and shares ISA allows you to do everything its Invest product does, but with the added benefit of it being tax-free (up to £20,000 in the 2023/2024 tax year). You can read our full stocks and shares ISA guide if you need to find out more.

So, with the Trading 212 ISA these are the main things to know:

• Like any ISA, you can invest up to £20,000 in the 2023/2024 tax year tax-free.
• You’ll pay no administration charges.
• You’ll pay zero commission for trades.
• There are no charges for dividend reinvestment.

Is the Trading 212 ISA any good?

Given the total lack of fees, Trading 212’s ISA seems to be a pretty good option for investors.

It’s pretty hands-on though if you’re a beginner, so if you don’t fancy the faff of creating your own portfolio and doing your own research into investments, you should look into either a “set and forget” style robo-advisor or an actively managed fund from the likes of Hargreaves Lansdown or IG.

Trading 212 CFD

Instead of trading shares, you can trade a CFD. This is kind of like betting on the direction that the stocks will move.

What can I trade with Trading 212’s CFD product?

• Stocks. Trade on the movements in the value of stocks, like Apple, Tesla and Lloyds.
• Forex. Trade on 150 major foreign exchange pairs with tight spreads.
• Indices. Trade on indices, such as NASDAQ, S&P500 and UK100.
• Commodities. Trade on commodities such as cocoa, cotton, coffee, gas, oil and sugar, among others.

Features of the Trading 212 CFD account include:

• Zero commission
• Tight spreads
• Stop Loss and Take Profit
• Negative balance protection
• Instant execution

CFDs are complex and risky. If you’re new to CFD trading then we have a guide that could help.

It’s also worth checking out our guide to CFD trading risks.

Compare Trading 212 accounts

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Name	Product	Product description	Link
Trading212 Invest		Free investing in stocks, ETFs and more.	83% of retail CFD accounts lose moneyMore Info	Compare	loading Fetching your data...
Trading212 ISA		Same as the Invest account, but within the tax-free stocks and shares ISA wrapper.	83% of retail CFD accounts lose moneyMore Info	Compare	loading Fetching your data...
Trading212 CFD		This is a riskier game. Actively trade stocks, forex and indices with leverage and zero commission.	83% of retail CFD accounts lose moneyMore Info	CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.	Compare	loading Fetching your data...

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What can I invest in with Trading 212?

UK - London Stock Exchange
US - NASDAQ
US - New York Stock Exchange
Canada - Toronto Stock Exchange
Euronext
Germany - Deutsche Börse
Keep in mind	Capital at risk. 83% of retail CFD accounts lose money
	More Info

There are more than 6,500 stocks and ETFs that you can invest in on a number of different markets. There’s a full list with detailed information on the Trading 212 website with information on the quantity that you can invest and the market hours. You can also buy fractional shares with Trading 212, which are a small portion of a share. If you get dividend payments on these shares then the amount you’ll receive will be proportionate to the amount you own.

Trading 212 customer satisfaction

Customer satisfaction rating	★★★★★
Customer help in app
Customer help via email
Customer help over the phone
Keep in mind	Capital at risk. 83% of retail CFD accounts lose money
	More Info

On the consumer review platform Trustpilot, Trading 212 has 4.3 out of 5 stars and a rating of Excellent, based on more than 8,500 reviews.

The love continues in the App Store, where the Trading 212 app has 4.7 out of 5 stars based on more than 1,500 reviews. On Google Play, the app has 4.5 out of 5 stars based on more than 49,000 reviews.

Customers loved how easy the app was to use, especially for beginners. Those who were less impressed cited technical glitches and pricing issues as the reasons (updated 23 April 2020).

Finder also carried out a customer satisfaction survey in July 2020.

Trading 212’s customers find the platform easy to use and think that it is very professional. Customers raved about its practice mode and interface. They especially liked the free share incentive and refer-a-friend promotion.

Some of its customers felt that the platform lacked direction and that it could do with some instructions to guide them.

Trading 212 fees and limits

There are no fees for using Trading 212, including the ISA, though there are several limits when it comes to deposits and withdrawals.

Minimum deposits and withdrawals

Trading 212 review: What else do I need to know?

Trading 212 is an app-based trading platform that lets you trade stocks, exchange traded funds (ETFs), CFDs, forex and commodities without paying any commission.

Alongside Freetrade in the UK and Robinhood in the US, Trading 212 is one of the UK’s most popular trading platforms for beginner investors. For new investors, the main draw of Trading 212 is the fee-free individual savings account (ISA) – which we’ll go into more detail on further down.

Who is Trading 212 good for?

Trading 212 would be suitable for those interested in building and managing their own portfolio. This means you’ll be choosing your own investments and balancing your portfolios based on market movements.

It’s not suitable for those who want to put their money into a ready-made portfolio to let it grow without much attention. If this sounds like you, then take a look at our comparison of investment platforms.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Trading 212 Invest vs CFDs: What’s the difference?

CFD trading is a lot more complex compared with investing in stocks. When you trade CFDs, you speculate on the movements in value rather than purchase the underlying asset or share. This means that you’re not entitled to receive dividends, as you never own the shares. It does mean that you can take advantage of prices going down in value as well as up.

There’s more complexity to this than just the contract, as CFDs allow for leverage.

If you’re not sure which one to go with, Trading 212 has a demo account that allows you to try it out without real money.

Trading 212 Invest vs ISA: What’s the difference and which should I go for?

These two accounts are virtually identical.

If you don’t have a stocks and shares ISA already, you should open up the Trading 212 ISA and take advantage of the tax benefits that come with it.

If you do have a stocks and shares ISA, you’ll need to open up the Trading 212 Invest account, because you’re not allowed to pay into more than one ISA per year.

Remember that on top of your ISA allowance, every UK adult is also allowed £6,000 (in the 2023/2024 tax year) in a capital gains tax (CGT) allowance. This means your first £6,000 of capital gains (i.e. growth of your investments) won’t be subject to tax. Once you exceed £6,000, you’ll start paying tax.

Also, keep in mind that not many people will exceed both their ISA allowance and CGT allowance, so this consideration doesn’t really matter for most people. If you do exceed both allowances, then lucky you! It is worth noting that the ISA allowance considers the value of your initial investment while capital gains refers to the amount of profit you make.

Is Trading 212 safe?

Trading 212 is regulated by the Financial Conduct Authority (FCA). All client funds are kept in a segregated account.
Trading 212 is also protected by the Financial Services Compensation Scheme up to £85,000 which protects you if it were to go bust. This doesn’t cover your investments if they don’t work in your favour.

Does Trading 212 have an inactivity fee?

Nope, which is great! A lot of trading platforms have a fee that you have to pay if you are inactive with money still held in the account.

How does Trading 212 make money?

Trading 212 makes money through the “spreads” between the buy and sell price for the CFD accounts on the platform. There is also a 0.5% currency conversion charge for these accounts too.

Is Trading 212 really free?

There isn’t any commission for trading with Trading 212, but there is a currency conversion fee. This is a fee for converting the money you’re using to buy shares into the currency that the shares are in.

So, for example – if you bought 100 shares of a company that costs US$4 per share, the total amount to convert would be US$400. You’d need to pay a currency conversion charge of 0.5% which is US$2 (approximately £1.43)

What is Trading 212 practice mode?

Practice mode

Trading 212 has a demo feature on the site and app that allows you to test out the platform with £50,000 of fake money. It’s fun to play around with to get a feel of the site and how it works before committing actual money to your investments. You can “buy” anything that you’d be able to in the “Real Money” feature, such as shares in Netflix, Amazon and Apple, among thousands of others. This lets you see how the investments fluctuate over time. This is quite a useful learning platform to get a feel for investing as a whole.

Trading 212 has a good focus on teaching people about the basics of investing and how to use the platform. It has a YouTube channel with hundreds of videos to teach you about share dealing and some handy guides on the basics and terminology.

It also has the demo feature for CFD trading, but if you don’t have much exposure to CFDs then this can be overwhelming and may put you off ever looking at a graph again. If CFDs are what you’re after, give it a go in the demo mode to start with to get to grips on how it works.

Real money

Once you reckon you’ve played around with fake money enough, you select “switch to real money”. It will take you through some basic information such as your contact details and some basics on your income and savings. Choose which accounts you want and which currency you want to trade in and you’re good to go.

When buying shares you can choose how many you want and the app gives you the cost in your chosen currency, which is helpful. You have the choice to create limit orders. This allows you to enter the maximum you’re willing to go to when buying shares. If the stock prices drop below this amount before the end of the day, it will automatically place the order for you. You can also do this when selling shares by entering the minimum you’re willing to sell for.

Trading 212 pros and cons

Pros

• Free to use – there aren’t any fees for trading with Trading 212
• Can be used in the web browser and on a mobile app
• Practice mode allows you to give it a go without putting down any money

Cons

• No personal pension, lifetime ISA or junior ISA
• Tutorial doesn’t give much detail on what’s what, you have to figure it out for yourself

Our verdict: Is Trading 212 any good?

Trading 212 has a lot of functionality considering that it has no fees. The practice mode is a great way to learn how it works, but you do need to do some external learning, so don’t expect it to teach you how to invest successfully. It does offer a huge range of resources to help you learn about investing which is helpful if you’re a newbie.

If you’re new to investing and are looking for ready-made portfolios, this isn’t the platform for you. It’s worth checking out some alternatives that have this feature. If it’s a free trading platform that you’re looking for, then you can check out our comparisons of Trading 212 vs Degiro and Trading 212 vs Freetrade.

Get started by visiting Trading 212’s site and opening an account. Still not sure? Compare other share trading platforms with our comparison table.

• Does Trading 212 have an app?

  Yes. You can access Trading 212 in a web app, on a mobile app and through a browser extension. The mobile app is, by far, less overwhelming than the web application, but in general, it is pretty simple and nicely laid out.

• Is Trading 212 regulated?

  Yes. Trading 212 is regulated by the Financial Conduct Authority (FCA) and your deposits are protected by the Financial Services Compensation Scheme (FSCS).

• Can Trading 212 give me advice on what to buy and sell?

  No, Trading 212 is not authorised to give financial or investment advice.

• Can I lose more money than I deposit?

  You can only lose what is in your Trading 212 account.

• Does Trading 212 have an inactivity fee?

  No, there is no inactivity fee for the Trading 212 Invest and Trading 212 ISA accounts.

• Does Trading 212 allow you to reinvest your dividends?

  Yes. Dividend reinvestments are possible with Trading 212 and have no additional fees. The dividends that you receive are added as funds. You can decide whether you want to withdraw the dividends or reinvest them.

• Why does Trading 212 need my NI number?

  It’s a legal requirement for Trading 212 to ask you to provide your national insurance number. This is because stocks and shares are usually taxed by HMRC. The tax is called stamp duty reserve tax (or just “stamp duty”).