Trading 212 Review: Is it Safe to Use in the UK?

Trading 212 is an ideal platform for investors in the United Kingdom who are looking to trade across multiple asset classes with low fees.
Trading 212 Review: Is it Safe to Use in the UK?

Tanya Chen

Senior Editor at Buy Bitcoin Finder
Trading 212 Review: Is it Safe to use in the UK? (2021)

Trading 212 Review: Is it Good for Trading in the UK?


Are you trying to buy shares or trade on Trading 212 but don’t know enough about it yet? Here is a review of the forex broker that will provide you all the answers you need.

To start with, Trading 212 is a London-based forex broker that offers commission-free trading to customers. It is reputed as a high performance trading platform for online traders that gives users access to a variety of assets. 

The platform was designed to suit both experienced and beginners in forex trading. There are currently over 1.5 million users from several countries on the platform. With over 150 pairs to trade, Trading 212 has enough variety for almost any trader.

Although it does not support crypto trading currently, it supports the trading of cryptocurrency CFDs. In this review, we will cover critical aspects of the platform including fees, Payment methods, signup, base currencies etc. our main aim is to determine the suitability of Trading 212 for UK traders.

Trading 212 Overview

The table below provides a high-level summary of the features of Trading 212 for users in the United Kingdom.

Available Assets Stock, ETF, Forex and CFD's
Base Currencies GBP, EUR, USD and CHF
Regulated by UK Financial Authority Yes
Minimum Deposit $1
Deposit Methods Bank Transfer, Debit Card/Credit Card, Skrill, PayPal, Direct eBanking + many more
Beginner Friendly Image
Free Trading Fees Image
Deposit Fees 0.7%
Conversion Fee 0.15%
Withdrawal Fees None



Is Trading 212 Regulated in the UK?

Trading 212 is a fully registered and regulated forex broker in the UK. It is regulated by two bodies, namely:

  • The Financial Conduct Authority (FCA) – Registration no. 609146 
  • The Financial Supervision Commission (FSC) – Registration no. RG-03-0237

It is therefore quite safe for UK users as the government has a very close watch over the platform to ensure users are protected. It is also fully regulated in Bulgaria and Cyprus where it has two of its three registered offices. 


Deposit/withdrawal methods 

There are several deposit methods supported on Trading 212. Most of these can be easily used by UK residents to make deposits on the platform using their favourite currencies. The methods can also be used to easily withdraw funds from trading accounts. For all the methods, the minimum deposit is $1 or 1 EUR except for Bank Wire Deposit which has a minimum deposit of 10 USD or EUR.


Deposit/Withdrawal fees

Trading 212 does not charge any fees for depositing funds. This is regardless of the methods used to make the deposits. There are also no withdrawal fees unless you withdraw up to 2,000 EUR at once. If the withdrawal reaches this threshold, a fee of 0.7% applies. A fee of 0.15% is also charged for conversion of currencies.


Security 

A critical concern of investors is the security of their investment as well as their personal information. On Trading 212, users’ funds are secured using a segregated account and their investments protected by the FSCS up to 85,000 Pounds. Users’ data is also protected using the industry’s best practices to protect them from attackers.


How to sign up 

Signing up on Trading 212 is relatively easy. You can easily follow the following steps to create an account and start trading. This only takes about 15 minutes to complete.

  • Visit the Trading 212 official website. It is important to avoid phishing attacks by making sure the website address is https://www.trading212.com/
  • On the landing page, you will see an option to “Open account”. When you click on the button, you will see the page like the picture below. This is the first step to fill in your details.
  • Select your country of residence. For UK users, it is the very first country on the list.
  • Next, provide your full name, phone number and other required information. 
  • After that, you will need to verify your account using a valid ID and a valid proof of location.
  • Finally, make a deposit and start trading.


Please note that you can start with as low as $1. This may sound impractical, but you can start with a really small amount to get used to trading before investing bigger capital. Trading 212 also advises that you fully understand the risks involved in trading before proceeding with the process.

Types of accounts

There are three types of accounts available on Trading 212. Which one is best for you depends on your interest in the platform and also depends on your location. 

While users are not allowed to create and maintain more than one account with the same documents, UK residents can run these three account types with the same credentials, all at once. 

The following are the three account types and their unique characteristics to help you decide on the one that fits you. 


Trading 212 Invest Account

  • The Invest account allows its holder to trade stocks and ETFs. 
  • Holders can also invest in these instruments free of any commission. 
  • Easy account to maintain as there are no fees or maintenance costs. 
  • Invest account also offers direct execution to the commands the clients need.

Trading 212 CFD Account

  • This account supports trading of crypto CFDs. 
  • Other supported options as stocks, commodities and indices. 
  • Holders of this account type enjoy privileges such as tight spreads, stop losses and take profits. 
  • No commissions for trading with it and can protect your negative balances. 

Trading 212 ISA Account

  • This is perhaps the best kind of account to have. 
  • It is restricted to GBP alone as supported currency. 
  • The account provides protection for upto 85,000 GBP. 
  • Used for investing or saving
  • Account is maintained tax-free

Pros and Cons of Trading 212

Trading 212 has a number of strengths and weaknesses. Below are some major ones highlighted for you to take note of.

Pros Cons
Several assets classes available Does not support MT4 software
Fully regulated in the United Kingdom
Low fees for active traders
Demo account for new traders
Variety of deposit/withdrawal methods

Conclusion 

Trading 212 is a simple-to-use trading platform for trading different kinds of instruments. It is particularly friendly towards UK residents and there is several evidence to show that. 

First, it is fully regulated in the UK which is one of two countries where the platform is fully regulated. Secondly, only UK residents are allowed to create and hold all three account types with the same credentials. So, is Trading 212 good for UK traders to use? The answer is yes.

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