Trading 212 Review
Do you want to invest with Trading 212? Do you know the Broker’s Commissions and Reviews? Read this review before dealing with Trading 212. In this review we are going to analyse the broker in depth so that you can make an informed decision. In any case, just to let you know that, in the opinion of certain traders, Plus500 is an interesting and cheap broker. However, as everyone has a different opinion, we want to give you the opportunity to get to know Trading212 in more depth (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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).
If Trading 212 is known for anything, it’s for its famous demo account which, although not one of the best, is known because of the company’s investment in advertising its demo. Now that we know the company a little bit more, let’s examine their rates, security and other issues that we consider important.
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Is Trading 212 a Scam? Is it safe? Can we trust it?
Sadly, in recent years brokers have appeared with the intention of defrauding clients. Fortunately, investors have a number of tools to defend themselves and avoid being swindled. What are these tools? Mainly, regulation. Brokers who are serious and reliable are supervised by national bodies that monitor their compliance with the rules. Therefore, if you come across a broker who is not regulated, the risk that it is a scam is high. In other words, we should only choose regulated brokers.
Trading 212 is in the group of brokers that we consider reliable. The reason is that, despite being from Bulgaria, it is regulated in the UK in the FCA, so too is the company that owns Trading 212. In view of all this, we can say that we consider Trading 212 not only to not be a scam, but to be reliable.
Platform and conditions
Trading 212 is within the group of brokers who do not offer third party platforms such as the famous MetaTrader 4, but have created their own trading software. This is neither good nor bad as such, as the important thing is that the platform is of quality.
We believe that the Trading 212 platform is fine. It is not of an excellent standard that makes us particularly happy, but we cannot say that it is bad. It has certain advantages, like that it can be used from any mobile phone with iOS and Android operating system, or that it has a new service called tradebird, which is something like a social network of investors.
But not everything is good. If you are not an expert in trading, you may find this platform difficult to use, as it is quite complex. That’s why we find the Plus500 platform interesting. Moreover, this broker is conveniently regulated and registered in the UK as well.
If you’ve been trading Forex, stocks or CFDs for a while, you may have seen an advertisement for the Trading 212 demo account. Their banners appear in almost every financial medium, and they always advertise a demo account with $10,000 free credit. Obviously, this is virtual money.
The Trading 212 simulator has several handicaps, including the difficulty of operating its platform as mentioned above. Precisely because of this, we believe that a more interesting option is to use the Plus500 demo, which is totally free, and which, moreover, has no time limit (you can use it as long as you want) and allows you to trade practically all the world’s assets, from the Forex market where the most common currencies are quoted, to lesser known commodities.
Below, we explain the process of opening a free Plus500 demo account (76.4% of retail investor accounts lose money when trading CFDs with this provider).
- Click here to open the demo account.
- After clicking, click on the «Start Now!» button
- On the next screen select the demo mode.
- Fill in the required fields with your data
- You can start investing now with the demo
As you can see, the process has no difficulty. In just a couple of minutes, you will have a CFD trading account on shares from the British, American or any other country you want, as well as on financial assets of all kinds (forex, indices, commodities, bitcoin…) (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Commissions and Spreads
Rates are something we cannot ignore. There is no point in the broker being very secure and serious if his commissions are high afterwards. Trading 212 is not expensive, but nor is it cheap. However, there is one aspect that seems to us to be very negative that we have to mention. For some years now, some CFD brokers have not been charging commissions for trading. Obviously they do have costs, which they apply through spreads, but they have eliminated trading commissions. Unfortunately, Trading 212 does charge commissions for trading shares of listed companies more generally. In our view this is a major drawback and disadvantage given the market circumstances in 2020.
On the other hand, the spreads charged by Trading 212 for trading CFDs are not bad, but as with everything else, they are not particularly good either. If we consider that in addition to normal spreads you have to pay commissions, it seems to us that your offer is far from ideal. Again, if we want to use a more interesting alternative, we have to look at Plus500. The reason is obvious, and is that this company was the first to eliminate operating commissions. In other words, no matter what you trade in stocks, currencies or whatever, you will not pay any trading fees. So, in this case, the important thing is the spreads that have a small minimum. So, if you want to know the spreads and the Plus500 offer click here (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Opinions of Trading 212 in Forums and Reviews
We have been asked about this section on occasion – why would anyone want to know what other investors think? Well, it is an interesting question, and the answer is clear, because it is a very good way to quickly find out if, in general, traders are happy with their broker or not. That is why, to do this part of the review, we have stopped to read comments in forums where the main topic is investment. In addition, we’ve gone into social networks, especially Twitter and Facebook looking for people to talk about Trading 212. As you can imagine, there is not one opinion shared by everyone, and each comment says something different. However, it is possible to get trends in people’s opinions, or at least that is what we have tried to do.
On the internet there are good opinions about the security that Trading 212 conveys. Being a UK regulated company conveys confidence and certainty to customers. Another issue for which it is possible to find good reviews are the tournaments organised by Trading212 with different conditions according to the modality.
Among the negative reviews we can see those who complain about having to pay commissions for trading CFDs on shares, when there are rival brokers who do not charge trading commissions for this same service. The platform also raises some criticism among those who do not have enough trading experience to understand a complex platform like Trading 212.
We believe that all the information we have given you throughout the review can help you make the right decision about whether to open an account with Trading 212 or not. We think it is a good broker, but we think there are better ones and that it is also possible to find them cheaper. Therefore, so that you can see everything that we consider important from our analysis, before we finish we will do a small study on the advantages and disadvantages of Trading 212.
- Regulated according to our requirements
- Website available in English
- Free Demo
We do not like
- There are fees for trading shares CFDs
- Difficult platform to use if you are not very experienced
- The demo has certain limitations
- There are other brokers with better conditions in general
Based on our research, and taking into account that their platform is not the best, nor their rates the cheapest, and the demo isn’t particularly good, we think that Trading 212 may not be very attractive to an entry level or mid level private investor. If that is your case, it might be more interesting to visit Plus500’s website, as we think it meets these requirements better. You can do this by clicking on the button below (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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).