If you want to trade stocks or CFDs online, a simple search on the Internet will show you that you are not spoilt for choice. Today, there are thousands of brokers, offering both new and experienced traders, a wide variety of services and features. The fact is, not all of these brokers are legit, and many have simply been created to scam people out of their hard-earned cash. In addition, if you compare the services, tools and features that brokers offer, it will quickly become evident that no matter what type of trader you are, there is a broker that will meet your trading needs and preferences. In our quest to find a legitimate broker that offers a wealth of effective trading tools and services, we took the time to review Trading 212.
To start, it states on the Trading 212 website that they are a London based fintech company that offers free, smart and easy to use trading apps. These apps enable traders worldwide to trade a wide variety of assets, including stocks, indices, cryptocurrencies, commodities and more. Trader 212 also states that they are the first and only zero-commission stock trading service in the UK and Europe, thereby making online stock trading available to millions of people globally.
So, this is where we kick-off our review of this broker.
Based on the information provided on the Trading 212 website, we were not able to find any evidence that they were the first broker to offer zero commission stock trading in the United Kingdom. Now, we are not saying that this information is not true, instead we are saying we were not able to verify it.
Irrespective of this, let us now take a look at what services and products Trading 212 has to offer and how it compares to other brokers in the industry.
Trading Platform
The core of any broker is their trading platform. This is where one can execute their trades in the financial markets. Interestingly, Trading 212 has a proprietary platform and from here, one can trade a wide range of assets including forex, indices, cryptocurrencies, indices and stocks. You can also access the top winners and the top losers in the markets and you can set up your favorite assets to trade. The trading platform also gives you access to trading charts as well as vital trading information, such as the spread type, the target spread, the margin, the short and long position swap amounts and the minimum trading quantity. You can also access videos and news and analysis from the trading platform.
While this platform has many features and trading tools, it took us quite a long time to familiarize ourselves with how to open a trade, how to use the tools and how to create a new market order. The fact is, the most popular trading platform today is the MetaTrader (Mt4 and MT5) platform. Other top brokers, such as EuropeFX, offer access to the MetaTrader platform, including the MT4 Windows terminal, the MT4 Mac terminal, the MT4 Android trader and MT4 for iPhones and iPads. You can also access the WebMetaTrader platform, which is browser-based, enabling you to access your account from multiple devices, plus you do not need to install any software. EuropeFX also offers TradeWorks which is an algorithmic trading tool that enables traders to access to cloud-based automation software which has specifically been designed to take any emotion out of the decision-making process and allows one to open and close their trades based purely on indicators and pre-programmed strategies. These strategies are based on a variety of indicators and it will pinpoint trading opportunities based on a trader’s trade parameters. It is able to also set up orders such as Stop Losses, Take Profit and Risk Management, to ensure that the trader’s trade settings are precise.
The platforms offered by EuropeFX do not end there because they also offer EuroTrader, which is a web-based trading platform that offers a wide choice of effective features for trading forex and other CFDs. This includes one-click trading, the ability to trade directly from the price charts, custom indicators, as well as a choice of chart types and multiple time frames.
It is clearly evident that brokers, such as EuropeFX, offer traders a wider choice when it comes to trading platforms in comparison to Trading 212. We are not necessarily saying that the trading platform offered by Trading 212 is inferior, we are simply saying that MetaTrader is the leading platform in the industry and most traders feel very comfortable executing their trades on this platform. The Trading 212 platform has a learning curve and might be more suited for advanced traders. It all really comes down to personal preference. Most traders today are likely to have traded on the MetaTrader platform during some stage of their trading career, making this platform the ideal choice.
Trading Accounts
Trading 212 offers a demo trading account as well as a real trading account. The demo trading account gives you virtual funds and allows you to test the trading platform and its features without risking any money. This is an important feature to have especially since the trading platform is exclusive to the broker only. In addition, Trading 212 only offers one type of account.
The fact is, no two traders are the same. They differ in terms of their risk appetite and their trading needs and preferences so we definitely believe in finding a broker that offers a choice of trading account types that meet the trader’s needs. A good example here would also be EuropeFX, which offers a wide range of trading account types. To start, this broker offers a Professional Trader account. Based on the new ESMA (European Securities and Markets Authority) regulations, which came into effect on the 1st of August 2018, the maximum leverage available on a trading account is likely to be impacted. If a trader requests classification as a Professional trader, this will allow them to continue with their existing trading conditions and leverage amount.
In addition, EuropeFX offers 5 account types including a Bronze account, Silver account, Gold account, Platinum account and a Premium account. Each account type has been tailored and offers a range of services and benefits including private trading sessions, SMS trading notifications, trading commissions and swaps up to 50% discount, daily newsletter and much more. This broker also offers a VIP program with a wide variety of exclusive benefits, such as first priority in booking one on one education lessons with a senior trainer.
We are not saying that the Trading 212 account type is inferior; it simply does not offer the variety that will cater to the different level of skill and trading preference of different traders.
Educational Resources
A big benefit of trading with a professional broker is gaining direct access to a comprehensive education centre. This includes gaining access to trading videos, one on one training, eBooks, daily market analysis and much more. Trading 212 offers its clients a wide choice of educational materials. These include videos, information on forex trading and types of trading modes (such as aggregating and hedging), economic indicators, data on how to use price charts and a detailed section on important trading concepts and terms.
The educational material offered by Trading 212 is helpful for traders with some experience in online trading but in comparison, EuropeFX seems to offer a much wider choice of resources.
At EuropeFX, their education centre caters to all types of traders and you can access their library of trading video courses, from beginner to advanced on important topics such as trading psychology, MT4, trading strategies and much more. You can also access a choice of trading eBooks, webinars, FAQs, a trading glossary, an Economic Calendar and market reviews. One of the other great features of EuropeFX is that they offer Trading Central, which provides vital technical analysis to boost trading accuracy.
Trading Signals
With the financial markets being so fast-paced, trading signals are an excellent tool to help both new and professional traders pinpoint trading opportunities in the markets. A signal is a notification, which can be sent by the broker, providing information on what asset to trade and when. At Trading 212, they do not offer a signals service. While this is not a must-have feature, there are many traders who do rely on this service to fine-tune their trading skills and strategies.
If trading signals are important to you as a trader, there are many leading services available in the market. For example, EuropeFX offers a signal streaming widget. These signals cover multiple assets that are available on the EuropeFX trading platforms and they are presented in a clear and easy to understand format. The signal is also sent with simple direction indications as well as a more detailed chart view with Support and Resistance levels.
Another great example of reliable signals service is Algo Signals. They offer free access to trading signals for forex and cryptocurrencies. They also offer a demo trading account so you can trade risk-free and get the chance to test their signals service.
The fact is, there are many brokers, apps and services available in the financial industry. While Trading 212 does offer a powerful trading app, it does lack in some areas. The benefit today is that traders can use a multitude of services and tools from different providers. Many however, opt to simply register with a broker that offers all the required services under one umbrella.
FAQs – Understanding Trading 212 – What is the Bottom Line?
So, the reality is, Trading 212 seems to check all the boxes when it comes to a trading app. While we struggled a little with their trading platform initially, once we had familiarised ourselves with the features and tools, we were able to make some trades. We still used trading signals from Algo Signals to assist us with our trading activities, but we were able to trade a range of assets with Trader 212.
When we review a new broker or product, we have noticed that many traders have the same concerns. As a result, we have decided to do a frequently asked questions section on Trading 212 so that we can address any questions, while also expanding our review of the broker.
So, let’s get started.
Is Trading 212 Safe?
Trading 212 is a regulated broker and the company is registered in England and Wales and they are also
authorised and regulated by the Financial Conduct Authority. The company is also registered in Bulgaria and is authorised and regulated by the Financial Supervision Commission. While regulation is important and it helps to secure a trader’s funds and personal information, we searched online and found quite a few reviews where clients were unhappy with the service they received from Trading 212. Interestingly, one of the biggest complaints from their clients is that Trading 212 simply closes open trades with no reason or explanation. Some clients complained of manipulative actions by the broker and stated that when an asset is rallying in a particular direction and you want to trade, you simply get the following message on the platform – instrument can’t be accessed at the moment. This causes traders to miss out on profits.
While testing Trading 212, we never experienced any of this, but we also only used the app to open a few trades and the process was seamless. In comparison, we checked reviews on brokers such as EuropeFX, and we found a lot of positive reviews commending the broker on its services and features. The bottom line, partnering with a broker is a personal choice and you need to select a broker that meets your trading needs and preferences.
Is There a Trading 212 Scam?
So, again this seems to be a big concern for investors globally. The last thing anyone wants to do is sign up with a broker that is simply going to scam you out of your hard-earned cash. With Trading 212 being a regulated broker, we would automatically assume that they are not a scam. As we mentioned, while we understand that a lot of negative reviews exist online, some of these could be placed there by competitors. We liked the fact that while we found many forums of clients complaining about the ‘unfair tactics’ of the broker, like removing some top performing assets, we found that in some places, Trading 212 had responded to these complaints directly.
Another interesting thing that we found is that many clients complained about the broker’s fees. One of the key selling points of Trading 212 is that they state that they charge zero commission or fees. We found a review online that states that in order to trade CFDs on stock shares with Trading 212, you need to pay a small commission. The broker also charges a small fee when you deposit funds into your Trading 212 account, between 0.7% and 3.5% depending on your chosen payment method. While we understand why a broker does charge fees, and while the commissions and fees charged by Trading 212 are not high, they are higher than some of their competitors.
We are not saying that there is a Trading 212 scam, instead we are recommending that you check all the terms and conditions and any other charges you may incur before signing up with them. We like the fact that at other brokers, such as EuropeFX , Pepperstone and Golden Markets they state that charges might be incurred when withdrawing one’s funds due to bank fees and we enjoyed accessing a comprehensive FAQs section before opening an account.
Is Trading 212 Good for All Types of Traders?
This is quite a hard question to answer as experience has taught us that there are no two traders who need and want the same services and features from a broker. Every trader has their preferred assets to trade, their preferred trading platform to trade on, their preferred signals provider and so forth.
As we stated, Trading 212 offers a proprietary trading platform. For many traders worldwide, MetaTrader is the standard so if this is the platform you enjoy trading on, you need to take into consideration that there will be a learning curve before you can start trading. If you prefer to trade with a platform and other services you are more familiar with, you could consider brokers such as EuropeFX, or you could use a signals service such as Algo Signals, to boost your trading strategies.
Bottom Line
Our experience with Trading 212 has been positive. It is an effective trading app that lets you trade a variety of assets from the comfort of one trading platform. You are able to trade CFDs as well as invest in stocks and ETFs. We do, however, feel that Trading 212 lacks the all-inclusive package of a well-known trading platform, a comprehensive educational center, effective trading signals and other services and features that enable a trader to find everything they need under one roof.
Overall Rating 8/10