Trading 212 Review South Africa – Unbiased Pros & Cons Revealed ( 2020 )

Trading 212 Review

Trading 212 Review

 

WHAT IS TRADING 212?

 

According to research in South Africa, Trading 212 is a trading name of Trading 212 UK Ltd. and Trading 212 Ltd. Trading 212 was founded in 2006 and has its headquarters in London, UK. The fintech company offers access to the financial markets with free, smart and easy to use apps.

Trading 212 is known for its zero-commission stock trading service in the UK and Europe, which unlock the stock market for millions of traders. Investors with Trading 212 can trade equities, currencies, commodities, stocks, indices and cryptocurrencies.

Although headquartered in the UK, Trading 212 operates through direct service lines in numerous countries like Argentina, Chile, Mexico, China, Russia, Italy, Poland, Spain, Germany and more.

Trading 212 uses the best available technology to speed up the placing and execution of orders with proper connection to the most significant liquidity providers.

 

SAFE OR SCAM?

 

One of the best means of determining the safety of a broker like Trading 212, is to establish which regulating authorities are watchdogs over its actions.

Trading 212 UK Ltd. is registered in England and Wales (Register number 8590005), with a registered address 43-45 Dorset Street, London, W1U 7NA. Trading 212 UK Ltd. is authorised and regulated by the Financial Conduct Authority (Register number 609146).

Trading 212 Ltd. is registered in Bulgaria (Register number 201659500). Trading 212 Ltd. is authorised and regulated by the Financial Supervision Commission (Register number RG-03-0237).

Its regulation status means that you are ensured of a set of implemented safety measures, and the broker is checked on a regular basis by some of the best authorities in the industry.

According to these regulations, clients’ funds are kept separately in segregated bank accounts.

The Financial Services Compensation Scheme (FSCS) and the Investors Compensation Fund (ICF) in Bulgaria cover client’s funds in the unlikely event of Trading 212 default.

This means that every trader will be compensated if the company fails up to GBP 50 000 through the UK entity and up to EUR 20 000 through the ICF Bulgaria.

 

TRADING 212 REVIEW OF PRO AND CONS

 

PROS CONS
1. Demo accounts available 1. Not ASIC Regulated
2. Min. deposit from $1 2. Doesn’t allow scalping
3. 40,000 users and traders 3. Does not allow EA software
4. Zero commission 4. Inactivity fee
5. Ideal for beginners 5. Short-selling not allowed
6. Regulated by the FCA and the FSC 6. Limited research selection
7. Minimum deposit from just $10

 

LEVERAGE

 

Leverage is a facility that enables you to get a much larger exposure to the market you’re trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.
The recent regulatory updates from the European regulators and ESMA regime itself mandated EU brokers to set a maximum leverage level to 1:30 with a purpose to protect clients.

 

ACCOUNTS

 

A Forex account at Trading 212 is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

Trading 212 provides its clients with three different types of accounts: Trading 212 Invest, Trading 212 CFD and Trading 212 ISA.

Trading 212 ISA is only for UK-based traders who want to benefit from tax-free trading up to a certain amount, while Trading 212 CFD is open for all international traders.

According to the trader’s activity, trading volumes and initial capital, Trading 212 may offer more competitive conditions, along with tailor-made solutions.

Trading 212 does also offer a demo account with $10,000 in virtual fund, to allow trading without risk and time limitation, for traders.

 

MARKET INSTRUMENTS

 

Trading 212 offers more than 1 800 instruments to trade, enough options for traders to decide where and how they want to invest their money.

These instruments include major cryptocurrencies like Bitcoin, Ripple, LiteCoin, Ethereum, Monero, EOS, Dash, Neo and more.

Traditional assets like stocks, commodities and indices can also be traded on the platform. Benefits associated with the diverse list of assets and choices available to trade on the platform are:

  • $0 commission investing
  • $0 fees
  • 3000+ global stocks & ETFs
  • Fractional shares
  • No foreign exchange fees
  • Unlimited instant trades
  • Forex, Commodities, Stocks and Indices to choose from

 

Read the Scandinavian Capital Markets Review here

 

FEES

 

Trading 212 doesn’t charge deposit fees, withdrawal fees or inactivity fees before after 180 days. Trading 212 is one of the few platforms that does not charge for transactions and is transparent about all costs applicable with paid-for services.

When withdrawing funds, there is a fee charged on wire transfers and fees may also be levied by third-party transfers, if applicable. The platform charges you for inactivity, if inactive for over 180 days consecutively.

As an STP broker, Trading 212 fees are considered to be very competitive with some of the tightest spreads in the industry. The broker offers a range of markets with all trading instruments commission free.

The Trading 212 Spread offers both fixed or floating spreads, however, with zero spread trading enabled on selected currency pairs from one account per client. Cryptocurrencies are traded though a floating spread with a margin of 10%.

A SWAP or overnight fee is usually charged if a position is open longer than a day.

 

DEPOSIT AND WITHDRAWAL

 

Trading 212 offers the most popular ways of depositing money into a trading account, including:

  • credit and debit cards
  • wire transfer
  • Skrill
  • Dotpay
  • Giropay
  • SafetyPay
  • Carte Bleue
  • Mister Cash
  • Direct eBanking
  • CashU
  • UnionPay

Depending on the method of payment and the currency of your trading account, there can be a deposit fee between 0.7% and 3.5%. To open an account with Trading 212 the minimum deposit amount to start trading is either 100 GBP, 100 EUR or 150 USD.

Withdrawals are processed by the same method as the deposit was done, with a zero withdrawal fee. Although there are no charges for withdrawal, a transfer via bank wire or Skrill will be eligible to the bank/Skrill fees requested by the service provider itself.

 

TRADING PLATFORMS

 

Trading 212 wants to suit traders needs with the most convenient technology, and therefore has chosen to offer a single proprietary platform.

The platform provides a trading experience through an easy, user-friendly interface which makes it possible to trade with all available instruments and products.

There is no need to download the program since a trader can get access through any computer browser.

The platform is developed to make the trading process smooth, but still features all the necessary tools for analysis, viewing, charting, and more.

Trading 212’s trading applications bring the freedom to trade anywhere with free and simple to use apps suitable for iPhone and Android devices. The Apps feature the same benefits as the desktop version but with more comfort and flexibility.

 

HOW TO OPEN AN ACCOUNT

 

The Trading 212 review is simple and easy.

As Trading 212 is regulated by the Financial Conduct Authority (FCA) and Financial Supervision Commission (FSC), every new client must pass a few basic compliance checks to establish whether you understand the risks of trading and are allowed to trade.

When you open an account, you’ll be asked for the following:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months confirming your address
  • You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While it might be possible to explore Trading 212’s platform straight away, you won’t be able to make any trades until you pass the compliance, which can take up to several days, depending on your individual situation.

Trading 212 might reject your application if the company feels that it might be too risky for you to transact on such a platform. The entire signup process can take some 10-15 minutes.

Once you have received your login details by email, submit your identification documents for account validation, and make a deposit.

 

CUSTOMER SUPPORT

 

Potential traders need to make sure the broker company they choose will offer support and help whenever they may need it, in order to help customers easily find the exact answers to their questions and offer them the best user experience.

Customer support from Trading 212 is available by calling in, email or through a contact page on the site. The website also has a live chat option in case you want to chat with a representative.

Trading 212 offers support in languages like English, German, Dutch, Spanish, French, Italian, Polish, Serbian, Norwegian, Swedish, Czech, Russian, Romanian, Turkish, Arabic, and Chinese.

 

EDUCATION

 

To trade effectively with Trading 212, it is important to get a good understanding of their trading tools and the markets.

Trading 212 offers a good selection of educational resources, with opportunities to read up on how the markets and trading works, making active trades, active trading times, and managing risk.

Having an analytical approach may be a good way to approach trading in general and with this broker, so take time to look around the platforms and train yourself to think systematically and logically about the markets.

You can watch their YouTube channel for hundreds of educational videos, since fresh content is added every week.

On their website you can read about trading modes, how to use charts, concepts and terms and economic indicators.

 

RESEARCH

 

To be able to trade with confidence and success, potential traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal.

This will ensure that they don’t lose money unnecessarily and make their trade as profitable as possible.

Trading 212 does have a research section that includes news, an economic calendar, and market analysis. The latter is given for a wide range of instruments, including silver, gold, and oil.

The news headlines are being pulled from third party sources, which isn’t ideal. There also is no research accessible from the app for mobile traders.

 

AWARDS

 

Being an awarded company instils extra confidence in traders, but little information about any awards accumulated during its years in business by Trading 212 are available.

The Trading 212 mobile app has more than 14 000000 downloads though, making it one of the most popular trading app in the world.

 

CONCLUSION

 

Best known for its commission-free trading, Trading 212 offers an easy to use trading platform and mobile app to residents across the UK and broader EU.

The Trading 212 broker is among the shortlisted companies that offer zero-commissions and bring access to the stock market to many traders.

Trading 212 has a lot to offer potential users, the primary benefit being commission free trading across a broad range of asset types.

Another benefit is the simplicity and usability of their Trading 212 mobile app, which is free to download, easy to navigate and very functional. Trading 212 is perfect for both beginner and veteran traders.

Its host of additional educational features can also benefit novices and experienced traders. Trading 212 offers fair customer support and the easy withdrawal of funds, making it a good option for would-be investors to explore.

Some potential investors may prefer a more browser-based broker, perhaps with the popular MetaTrader4 platform, or additional features like algorithmic/automated trading or the option of managed accounts.

Trading 212 accepts traders from Australia, Thailand, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.

Traders cannot use Trading 212 from the United States or Canada.

 

Read the Score Priority/Just2Trade Markets Review here

 

DISCLAIMER

 

Trading 212 warns all potential customers that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.

Before deciding to trade the products offered by Trading 212, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Trading 212 warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence Trading 212 cannot guarantee a maximum loss, according to research in South Africa.

 

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