Trading 212

Trading 212 is a London-based fintech company that democratized investing in the UK and Europe with its zero-commission model. The platform offers two main accounts: "Invest" for buying real stocks and ETFs, and "CFD" for active trading with leverage. It is the most downloaded trading app in the UK, loved for its user-friendly interface and "AutoInvest" pies feature.

The "Pies" feature allows users to build a diversified portfolio and automatically invest funds into it, similar to M1 Finance in the US. Trading 212 also pays interest on uninvested cash, providing a passive return on idle funds. It is a legitimate, FCA-regulated broker that holds client assets in segregated accounts and is covered by the FSCS protection scheme.

Frequently Asked Questions

1. Is Trading 212 free?

Trading 212 Invest accounts offer commission-free stock and ETF trading. However, they charge a small FX fee (0.15%) when you buy assets denominated in a currency different from your account currency. The CFD account charges spreads and overnight interest fees.

2. Is my money safe?

Yes, Trading 212 is regulated by the FCA in the UK and CySEC in Cyprus. Client funds are kept in segregated bank accounts, and UK clients are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 in the event of broker insolvency.

3. What is the AutoInvest feature?

AutoInvest allows you to create a "Pie" of stocks and ETFs, assigning a percentage weight to each asset. You can then deposit funds, and the system automatically distributes the money across your chosen assets according to your target allocation.

4. Can I buy fractional shares?

Yes, Trading 212 was one of the first UK brokers to offer fractional shares, allowing you to invest in expensive stocks like Amazon or Google with as little as £1. This makes it easy to build a diversified portfolio with a small budget.

5. Do they pay interest on cash?

Yes, Trading 212 pays daily interest on uninvested cash balances in your account. The rate is competitive and often tracks closely with central bank rates, providing a return on your money even when you are waiting for an investment opportunity.