Is Trading 212 a Scam?
We’re not sure why people are saying that Trading 212 is a scam. They are authorised and regulated by the FCA. You can check this out for yourself but here we have done this for.
We have also used the app ourselves and know many other people who have had no issues whatsoever.
As we just mentioned, a lot of people lose money on CFDs, so are likely to be extremely disappointed and which we suspect is the root cause of this “scam” myth, but despite this the app has an incredible rating on Trustpilot.
Almost all the negative feedback seems to come from those using the CFD account, which you should only use with caution anyway. We’re not suggesting that there are no genuine complaints, but it seems that this is the minority.
In any case, as a regulated platform they must comply with complaints according to FCA requirements.
Is It Really Free?
Incredibly, yes. At least from fees that they directly control. A lot of things these days claim to be free but have hidden fees that you have to navigate around like a ninja.
Usually there’s a big heading that’s say ‘FREE’ that gets you excited and then you go straight to the T&Cs or fee section only to discover that it was a load of nonsense. Well in this case it’s true – it is free!
We’ve scoured the entire site and have personally used the app ourselves and have not been victim of any hidden nasties.
Of course, these is no such thing as completely free investing because you have to pay the bid/offer spread, which is a feature of the stock market.
All shares and ETFs have 2 prices – a buy and a sell price. The spread is what you would lose if you bought and immediately sold an investment.
You may also have to pay stamp duty or other taxes depending on what you’re buying.
And when you buy ETFs, you will pay a fee called the OCF, which costs typically around 0.10 to 0.30% of your holdings depending on the ETF – again, this fee is to the ETF provider, not Trading 212, and is outside of their control.
11 Comments
Hello, I’ve just put £700 on trading 212, have you any tips, I’m not sure if to go short term or long term as I’ve never done anything like this before, thanks
Well we would always go long term, and invest in ETFs. Here’s an example: search VWRL on the T212 app, it covers the whole world. Ben
Investing should be a long term pursuit. Suggest 80% in a global equity tracker VWRL and the rest in global bonds VAGP. Gets you access to 3000 shares and 4000 bonds in 2 etfs. Diversification is important especially with small amounts. If you are nervous starting out you could opt for equal amounts in both etfs initially. Good luck with your investing.
Pretty much agree with this – i’d forget the bonds though if you want growth, and diversify out into a range of global equity ETFs, more flexibility than a single All-World ETF. Ben
I just wanted to reach out and say hello.
You, among a few other Youtubers and bloggers inspired me to start my own passive income journey.
I now have a blog, a Youtube channel and a dividend investment portfolio.
Seeing some good growth already, look forward to seeing where it will take me.
Thanks both!
Sean C
Good for you – and best of luck. Ben
Trading 212 released a set of T&Cs relating to “lending your shares” is this the norm? How can a free to use platform afford this, and is it a high risk strategy by them?
Brett
p.s. This website and your Youtube channel inspired me to invest, and start assessing my finances, thank you!
Updating Ts&Cs is normal and happens all the time. T212 make their money from their highly profitable CFD arm of the platform, and we believe the Invest and ISA arms are loss making. But by getting you to sign up for the free stuff, they hope you’ll try out the CFDs. We advise caution against doing so, as the vast majority of people lose money trading CFDs. Ben
What would your advise be to start investing with only £500.
I’d be going for globally diversified ETFs. Or just the one – maybe VWRL (Vanguard All-World ETF). But that’s just me.
Thanks, Ben
Look at VWRP or HMWO. Both are Accumulating all world ETFs. VWRL pays a small dividend.
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