Broker to Trading

Trading 212 offers a CFD trading account and an Invest account (in the UK there is also an ISA account where the trader can invest in a Stocks and Shares ISA). The Invest account lets the trader buy and sell real Stocks and ETFs. The CFD trading account lets the trader trade CFDs. CFDs are Contracts for Difference and allow the trader to trade a market without owning it. The CFD account offers more than Stocks and ETFs CFDs, as it includes Forex, Indices, Energy, Metals and Soft Commodity CFDs. There are 10,000 Stocks and ETFs to buy and 2500+ CFDs to trade. Trading 212 has a particularly large offering of Forex pairs, with 180+ available.

To give an example, as with other CFDs, when trading a Stocks CFD, the trader does not own the market, in this case they do not own any Stock. The value of the CFD is referenced to the value of the Stock as traded on exchanges. The trader can go long or short and use leverage. Trading 212 does not charge commissions for trading any CFDs. However if the trader uses robo trading services, there is a commission charge.

When buying Stocks and ETFs on the Invest account the trader buys Stocks and ETFs to own. Leverage is not available on the Invest account. Trading 212 charges no commissions on the Invest account (or the ISA account in the UK). The trader can switch between the CFD and Invest account on the platform. The platform also allows the trader to switch between the live and practice account.

The trader can try the demo account (called the Practice account) and then add on the live account (called the Real Money account) by completing the application. Accounts can be in GBP, USD or EUR. The minimum deposit is $/€/£10 for the CFD account and there is no maximum deposit. For the Invest account the minimum deposit is $/€/£1. Accounts can be funded by bank transfers, credit and debit card payments, Skrill, Dotpay, Giropay, SafetyPay, Carte Bleue, Mister Cash, Direct eBanking, CashU and UnionPay. Trading 212 says that Credit and Debit Card payment take 10 minutes from account approval. Trading 212

Is automated trading offered at Trading 212 ?

Currently the trader cannot trade using robots on the live account at Trading 212. Thus the Real Money (live) platform is for traders who execute their own trades. ProQuant is a third party app which lets the trader execute automated trading strategies (robots) by connecting with a broker. Trading 212 says that they are working on allowing the use of robots on the live account via ProQuant, but this functionality is not yet available.

The Trading 212 Online Trading Platform

The trading platform is available as a web trader and as a mobile app. The platform can be considered user friendly (i.e. it is straightforward to use and clear to read) and has the additional feature of allowing the trader to switch between account types (Invest or CFD) and live and practice (demo) accounts. There is a guide to use the platform available on it, which walks the trader through its features.

Time frames are from 1 minute to 1 month. Chart price types can be chosen from Candlestick, Heikin-Ashi, Bar, Area and Line. Chart types provide different representations of the progression of the value of a market over time on the chart. 50+ technical indicators are offered. Technical indicators are used to analyse markets and to provide a basis to enter, manage and exit trades. If the trader is not familiar with indicators, they can find them described online and in books. As with any trading tool, they do not predict the market, rather they can provide a rationale for making a trade.

There are other ways to analyse markets, including fundamental data and other forms of technical analysis (such as candlestick chart analysis). Trading 212 offers Videos, News, Analysis and an Economic Calendar on the trading platform and its website. An Economic Calendar can be useful as it shows what data is being released into the market and when. Economic data may result in changes in the value of markets affected by the data, sometimes resulting in rapid volatile market moves. The trader can check the calendar to see if anything is upcoming before making a trade.

The capacity to switch between demo and real accounts can be a useful feature for the trader, as it allows them to take a break from the market at any time and practice trading or test out ideas on the demo account. It might be instructive to compare the Trading 212 platform with a popular platform found at other brokers.

Trading 212 vs MetaTrader 4

MetaTrader 4 (MT4) is a third party online trading platform found at many brokers (though not at Trading 212). MT4 is well known as a Forex trading platform, though it also supports other markets to trade. MT4 provides features for the trader who executes their own trades but it is well known for its support of online trading robots, called Expert Advisors or EAs on the platform.

EAs codify trading strategies, typically based on an indicator signal. In effect they codify the way a trader may trade, who executes the own trades. One reason why a trader might want to do this is that robots potentially have advantages in terms of speed and accuracy (for example they do not get tired) and can trade at times the trader may not be available. However, robots can also produce drawdown in the trader's account as they rapidly execute trades against the market (which a human trader has the potential to stop doing, as they can exercise their own discretion).

In terms of charting features, the number of technical indicators provided on the MT4 platform can vary depending on the broker but 50+ is typical. Trading 212 also has 50+ technical indicators. MT4 has an online support network where traders may download more tools like indicators and EAs. If the trader learns the MQL4 programming language, they can also modify and build both EAs and technical indicators.

In essence the Trading 212 platform is a user friendly platform designed for the trader who executes their own trades, while MT4 supports both automated and non-automated trading (as some brokers MT4 can also be used for social and copy trading) and can have its capacities changed and added to. The Trading 212 platform arguably is designed for the functionality of this broker, offering the capacity to switch between account types and to switch between the demo and live accounts. Finally for Forex traders, the Trading 212 platform has an unusually large number of Forex pairs, with 180+ versus a typical number of 50+ offered on MT4.

Trading 212 Zero Spread

Spread can be fixed or variable depending on the market. For EUR/USD, GBP/USD and USD/JPY there is a fixed spread of zero available for these Forex pairs. These three pairs are major Forex pairs.

Regulation and Safety

Trading 212 UK Ltd. is authorised and regulated by the Financial Conduct Authority (FCA) with Register Number: 609146. All client funds are kept in segregated accounts and covered by the Financial Services Compensation Scheme, which can pay up to £85,000 for each investor. Trading 212 Ltd. is authorised and regulated in Bulgaria by the Financial Supervision Commission with Register Number: RG-03-0237. Client funds are covered by the Investors Compensation Fund. Trading 212 Markets Ltd. is authorised and regulated in Cyprus by the Cyprus Securities and Exchange Commission (CySEC) with License number 398/21.

Key feature summary

• User Friendly Trading Platform
• 10,000+ Stocks To Own
• 180+ Forex Pairs
• Range Of CFD Markets To Trade (Not Own)
• Stocks and ETFs To Own On The Invest account
• No Commission Charges
• Fixed Zero Spreads On EUR/USD, GBP/USD and USD/JPY
• Minimum Deposit Of $10 for CFD trading
• $1 minimum deposit for the Invest account
• No Maximum Deposit
• Web Trader And Mobile Apps
• Switch Between CFD And Invest accounts
• Switch Between Live (Real Money) And Demo (Practice) Account On The Platform