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Freetrade ReviewTrading 212 Review
Written by Elizabeth Anderson
Edited by Carolyn Kimball
Fact-checked by Steven Hatzakis
Your capital is at risk.
Trading 212 is an investment platform that offers commission-free share dealing, making it a low-cost alternative to more traditional brokers. Novice investors will likely find the platform easy enough to navigate after a few trades, but there is also the option to open a practice account while you get to grips with it.
If you are looking to simply execute share or ETF trades through an ISA or general investment account, I think Trading 212 is a great option. Trading 212 offers a very competitive interest rate of around 5% on its cash ISA and on uninvested cash in its stocks and shares ISA. For investors looking for more diversification through mutual funds, or who want to invest through a pension, another broker may be a better option as Trading 212 doesn’t offer self-invested personal pensions (SIPPs).
-
Minimum Deposit:
£1 -
ISA:
Yes -
SIPP:
No
Trading 212 pros & cons
Pros
- Offers ISAs, meaning you don’t have to worry about tax on potential returns.
- High interest rate paid on cash held on the platform, currently around 5%.
- User-friendly mobile app.
- Commission-free stock and ETF dealing, and you can buy fractional shares.
- Offers practice accounts.
Cons
- Does not offer a SIPP.
- Limited educational materials when researching investments.
- Only offers stocks and ETFs; does not offer mutual funds or bonds.
Overall summary
| Feature |
Trading 212
|
|---|---|
| Overall Rating |
|
| Charges & Fees |
|
| Investment Choices |
|
| Mobile App |
|
| Website |
|
| Ease of Use |
|
| Education |
|
Charges and fees
Trading 212 is among a handful of newer brokers, such as Freetrade, that have disrupted the market by offering commission-free stock trading. Investors don’t have to worry about paying dealing charges, meaning you can invest small sums of money without your investment being swallowed up by charges.
Trading 212’s charging structure is simple – there are no fees for buying and selling shares. However, you will be charged a small currency conversion fee if buying a stock listed overseas. For example, if buying Apple in U.S. dollars, you would pay 0.15% when buying (and 0.15% when selling) for converting pounds to dollars. If buying $500 worth of shares, for example, you’d pay a currency conversion fee of around £0.75.
This is much cheaper than other platforms, such as Halifax Share Dealing and Interactive Investor, which charge more than 1% for currency conversions.
However, Trading 212 allows you to hold multiple currencies in your investment account so you don’t always have to incur foreign exchange fees every time you buy shares in another country. Examples of the twelve different currencies you can hold include U.S. dollars (USD), euros (EUR), pound sterling (GBP), and the Swiss Franc (CHF).
A major benefit of Trading 212 is that it pays 5.17% interest on cash held in its accounts, paid daily. This top interest rate applies to cash held in GBP (pounds). On cash held in US dollars (USD), the interest rate is 4.6%, and on euros (EUR) the interest is 3.7%. These rates are highly competitive among other investment platforms and high-street banks. Trading 212 offers an easy-access cash ISA as well as a stocks and shares ISA, so you could earn a decent level of interest through the cash ISA even if you don’t plan to invest.
There are no charges for withdrawing money from Trading 212. You are also not charged inactivity fees if your account lies dormant. Overall, this makes Trading 212 very competitive on fees, particularly when compared to traditional brokers. One criticism I have of Trading 212 is that you cannot do share transfers in or out of your investment account — you have to cash in your holding first before buying again.
Scenario pricing: When calculating annual share dealing costs, trading frequency and account balance are the two most important factors to consider. Assuming a £30,000 portfolio in a traditional, taxable share dealing account, here are five scenarios of how much Trading 212 would cost based on trade frequency:
- 5 trades per year = £0
- 12 trades per year = £0
- 36 trades per year = £0
- 120 trades per year = £0
- 3 fund trades per year = £0
| Feature |
Trading 212
|
|---|---|
| Minimum Deposit | £1 |
| Share Trading: 0-9 Deals/ Month | £0 |
| Share Trading: 10-19 Deals/ Month | £0 |
| Share Trading: 20+ Deals/ Month | £0 |
| Annual Custody Fee: £0 - £250,000 | £0 |
| Annual Custody Fee: £250K-£500K | £0 |
| Annual Custody Fee: £500,000 - £1m | £0 |
| Annual Custody Fee: £1m and over | £0 |
| Bonds - Corporate - Fee | N/A |
| Bonds - Government (Gilts) - Fee | N/A |
| ETFs - Fee | 0 |
| Investment Trusts - Fee | 0 |
| Telephone Dealing Fee | N/A |
What type of trader are you?
New to the world of investing? See my picks for the best UK trading platforms for beginners. More experienced traders should check out my guide to the best UK Trading Platforms for Active Traders. If you're looking to trade shares on the go, read my guide to the best UK stock trading apps.
Mobile trading apps
Trading 212’s mobile app is highly rated by users, and has a rating of 4.6 stars out of almost 240,000 ratings on the Apple store and 4.7 stars out of 175,000 ratings on the Google Play store.
I found the app fun to use – particularly as you can open a demo account funded with £5,000 of virtual money, allowing you to test your own investment hunches without losing any cash. I also liked the fact that it’s easy to get investment inspiration by seeing top winners and losers, the most owned stocks, and new companies on the platform.
Trading 212 offers more than 50 charting tools on its mobile app - an unusually large amount on mobile compared to other brokers - which is appealing to experienced investors looking to analyse trends and historical performance.
You can also easily see your portfolio by selecting the ‘pie’ symbol and view your portfolio’s performance over time in chart form.
Tap for a demo of Trading 212’s U.K. trading app.
Website
The Trading 212 website is comprehensive, allowing you to buy and sell in real time. I liked the fact you can see upcoming economic events and there are extensive charting tools available for free to all users. This includes more than 50 indicators such as Simple Moving Average to help you analyse historical trends in the price of a stock you are researching. Click on ‘Advanced chart’ to discover the full range of charting tools. One criticism I have is that you can’t overlay different stocks or indices on the same chart to easily compare historical performance. Many other brokers offer this.
I think the website feels more basic in appearance and functionality compared to brokers such as Interactive Brokers or Hargreaves Lansdown. But for investors looking to execute simple trades and manage their portfolios, the website offers all you need.
| Feature |
Trading 212
|
|---|---|
| Web Platform | Yes |
| iPhone App | Yes |
| Android App | Yes |
| Stock Alerts | Yes |
| Charting - Indicators / Studies | 106 |
| Charting - Drawing Tools | 27 |
| Charting - Notes | Yes |
| Charting - Display Corporate Events | No |
| Charting - Stock Overlays | No |
| Charting - Index Overlays | No |
Investment choices
Trading 212 offers around 13,000 investments, a huge range for investors, although it’s limited to stocks and ETFs. A big drawback is that Trading 212 doesn’t offer mutual funds (also called open-ended funds). This may be a downside for investors looking for further diversification. On the plus side, particularly for newer investors, Trading 212 is one of just a few newer platforms — along with Freetrade, Robinhood, and XTB — to offer fractional shares, making it easier to buy small amounts.
There is also the option to invest in contract for difference (CFD) products, allowing you to bet on expected market movements and to invest in more assets such as gold and the forex market. However, CFD trading is typically aimed at experienced investors due to high risk. Around 78% of retail investor accounts with Trading 212 lose money when trading CFDs, the company says. For everyday investors, an ISA account or general Invest account should be your starting point.
Trading 212 also offers a free debit card with some attractive features. It currently pays 1.5% cashback and includes the ability to hold different currencies with a conversion fee of just 0.15%. ATM withdrawals are also free up to £400 per month.
| Feature |
Trading 212
|
|---|---|
| Share Trading | Yes |
| CFD Trading | Yes |
| ETFs | Yes |
| Funds | No |
| Bonds - Corporate | No |
| Bonds - Government (Gilts) | No |
| Investment Trusts | Yes |
| Spread Betting | No |
| Crypto Trading | No |
| Advisor Services | No |
Education
Trading 212 offers a good range of educational articles on topics such as using indices for investing, how to read financial statements, and an explanation of different asset classes. There are around 150 videos available to view on the app aimed at helping newer customers understand how the stock market works, covering topics such as how to choose your first investment, the nuances of investing in the U.K., and how to pick dividend stocks.
However, there are no webinars for people looking for more in-depth information or answers to questions. Overall, I found the educational experience offered more basic than other platforms such as eToro and IG, but there is enough to help new customers get started.
| Feature |
Trading 212
|
|---|---|
| Education (Share Trading) | Yes |
| Education (Funds) | Yes |
| Education (Retirement) | No |
| Client Webinars | No |
| Client Webinars (Archived) | No |
Are you new to investing?
We thoroughly tested 17 top U.K. brokerages to find the best choices for beginner investors. Read more in our guide.
Final thoughts
Trading 212 is a great broker for investing in the stock market, and it also offers a high interest rate for those simply looking to earn interest on cash savings without investing. Trading 212’s key selling point is the fact you can buy and sell stocks at no cost, except a small charge of 0.15% if you are buying shares in a currency not held in your account.
Another advantage is that you can start with a practice account, meaning you can apply different trading strategies without having to worry about losing real money. This feature is especially beneficial to beginners. This type of practice trading, also called paper or virtual trading, is typically offered by brokers that offer CFD trading.
One main drawback of Trading 212 is that it doesn’t offer a SIPP, meaning investors can’t benefit from tax relief on investments earmarked for retirement.
Overall, Trading 212 offers a great way to get to grips with investing in stocks and ETFs. When you are ready to trade, you can buy fractional shares so you can invest with lower amounts of money and won’t have to worry about trading fees.
However, more experienced investors looking for a wider range of assets — such as mutual funds or bonds — may prefer another platform that offers a more complete experience.
About Trading 212
Trading 212 launched commission-free trading in the U.K. in 2017, the first broker to offer it, and has been in existence since 2005. The Bulgaria-based broker offers three main services: investing, ISAs and CFDs.
Can Trading 212 be trusted?
Trading 212 has been in operation since 2005, so it has a long history of being in business. It is an established broker in the U.K. and is regulated by the relevant financial authorities.
Is Trading 212 regulated in the U.K.?
Trading 212 is regulated by the Financial Conduct Authority (FCA) in the U.K., meaning investments up to £85,000 are protected should the company cease trading for any reason.
Does Trading 212 have high fees?
Trading 212 is one of the cheapest investment platforms for everyday investors looking to invest in the stock market. The company makes money through CFD (contract for difference) trades, allowing it to charge no fees or low fees for other investing activities.
Do people actually make money on Trading 212?
Like with any platform, the gains and losses you make will depend on your own investment decisions. No one knows how a company stock will perform in future. CFDs are more risky investments and around four in five investors trading CFDs will lose money.
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Methodology
For the UK.StockBrokers.com Annual Review, we assessed, rated, and ranked 17 U.K. share dealing platforms over a 10-week time period. Each broker’s platforms and features were exhaustively tested by hand and graded on 53 different variables. In total, over 25,000 words of research were produced.
We thoroughly tested and compared features of prime interest to everyday investors, including but not limited to:
- Investment choices, such as whether the broker offers trading of shares, ETFs, funds, bonds, and CFDs; and offers SIPP and ISA accounts.
- The broker’s charges and fees for investing.
- Functionality and design of mobile apps and website platform, and a fluid experience moving between app and web.
- Usability of tools such as charting and watch lists.
- Market research, such as screening, news and analysis.
- Educational resources including tutorials, online courses, videos, webinars and articles.
Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors with quality data they can trust. Our lead researcher and writer, Elizabeth Anderson, has more than a decade’s experience as a financial journalist and market researcher. Elizabeth’s expertise is backed by a team of veteran fellow traders, data auditors, editors and project managers who work to ensure that UK.StockBrokers.com reviews and guides are the most unbiased and complete in the industry. Read more about our team.
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Show allAbout the Editorial Team
Elizabeth Anderson, lead writer and researcher, has been a financial journalist for more than a decade. In addition to her work with UK.StockBrokers.com, she has written extensively for major publications including BBC, The Times and Bloomberg. A keen investor herself, she is passionate about helping people understand finance and investing.
Carolyn Kimball is a former managing editor for Reink Media and former lead editor for the StockBrokers.com Annual Review. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex (some might say befuddling) topics to help consumers make informed decisions about their money.
Steven Hatzakis is the Global Director of Online Broker Research for UK.StockBrokers.com and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.