Trading 212 Review: Trading 212, based in London, is an investment company that opens the market of finance for everyone with powerful, easy-to-use platforms to trade the assets like equities, commodities, forex, etc. The first time ever happened zero-commission service for stock trading in England and European countries made a huge deal in the brokerage industry.
More than 14 million downloads on the mobile applications, trading 212 is easily one of the most famous trading apps that is available right now. UK’s number 1 trading app goes to the company from 2016 and the same in Germany from 2017.
Ivan Ashminov and Borislav Nedialkov together founded Trading 212 in the year 2006. Even though the unit still be present in Bulgaria, the company now resides in London.
Products of Trading 212
ETF and Stock trading
The major highlight that made the company overnight success is zero commission trading on exchange markets. The largest revenue comes from selling key points of the product. In addition, customers are not charged any withdrawal or deposit charges. Instead of making returns from brokerage charges, the company relies on spreads that take place between buying and selling prices of assets. Also, 0.5% charges are applicable on the conversation of currency and stamp duties on stocks are exclusive.
CFD trading
Trading 212 gives the facility to use leverage while trading with CFDs, where leverage ratio varies according to the instruments. For an instance, when trading with currency pairs, a 1:30 ratio is applicable in case of containing USD, CAD, Euro, Pound Sterling, Franc, or Yen. Cryptocurrency, stock, indices, forex, and commodities are available for users to trade.
Assets / Markets
Trading 212 claims a vast range of 2500+ instruments to be tradable by clients. More than 150 pairs of forexes with tight spreads even while the news volatility.
Above 30 indices including chief and niche markets across the different country with zero directive. Silver, Gold, Oil, and many other commodities are accessible to trade on the go within apps.
Regulation and Licensing
The Financial Conduct Authority (FCA) is an agency that regulates and authorizes the trading companies and their regulations as per the rules and common standards. On a side note, “Trading212 Ltd” and “Trading212 UK Ltd” are parent companies that administrate Trading 212.
Whereas, England and Wales registered Trading 212 UK Ltd. company is sanctioned and controlled by the Financial Conduct Authority, FCA with the registration number 609146. Meanwhile, Trading 212 Ltd.
is listed in Bulgaria and similar to the previous one; it is also authorized by the Financial Supervision Commission as RG-03-0237 registration number.
Compensation
All client funds are separately stored in isolated bank accounts also known as segregated bank accounts to ensure the maximum safety and also in agreement to company protocols. Besides, ICF (Investors Compensation Fund) and FSCS (Financial Services Compensation Scheme) guards the entire funding very efficiently for brand companies “Trading 212 Ltd” and “Trading212 UK Ltd”, respectively.
It is to note that FSCS allows up to 85000 GBP compensation of the client funds in the not likely occurrence of avoidance, whereas the ICF recompence equal to 90% but with the limitation of 20000 EUR. In improbable moment of crisis, the company will compensate each and every client if it fails to fulfil with the commitments because of financial downfall.
Safety and Security
By implementing best data protection practices for industry, surety of the security is promised. Pen test of application are executed by security metrics of US based infrastructures. Grant Thornton audits the entire company’s business, financial, governance, as well IT hardware and systems. To analyze the network traffic and monitoring for any unintended actions, a dedicated Security Operations Center is running every second and also alerts the operators for security beach to protect client funds in realtime.
Benefits
Trading 212 is an easy choice for novice users who are learning the investment and trading practices. Simple and effective implementation of different technologies behind a single application is something that can’t find every day. The following are the highlight of benefits that come with the services: Absolutely free with zero commission
- Tight spreads
- Transparent trading footprints
- Take Profit and SL (Stop-loss)
- Immediate execution
- Zero hidden or extra charges
- Protection against negative balance
