From the collaborative efforts of financial technology companies to acquire shares from traditional brokers, decentralize the markets, and allow larger client engagement, Trading 212 was developed. This new-found structure has made Trading 212 a popular broker, with its current platform download now at 14,000,000. Its growth and visibility has resulted in various industry awards as it was hailed as the number 1 broker of the United Kingdom for 2016 and Germany for 2017.
Presently, the broker is known to offer commission-free trading on Foreign Exchange, equities, commodities, and other asset classes. With 1,800 assets in total, traders are given an impressive selection for portfolio upgrade. More so, it has established its name as a provider of generous spreads and leverages. These are just some of the reasons why Trading 212 gained tight market adhesion.
Trading 212 Licenses and Regulation
Trading 212 UK Limited, the company behind the platform, is filed under the jurisdictional regulation of England and Wales. Its operations are then inspected by the Financial Conduct Authority, with a license number 609146. Its subsidiary located in Bulgaria is registered under the Financial Supervision Commission. With policies implemented by these authorities, clients’ funds are then protected as it was heavily segregated from the company’s.
Fund protection is reinforced by the Financial Services Compensation Scheme, which stipulates that clients are insured with 85,000 euros should there be any proven financial discrepancy. More so, the Investors Compensation Fund also mandates the company to provide coverage of up to a maximum of 20,000 euros, with the same requirement asked in order for clients to apply for such grant. While it has been steadfast to provide these insurances, financial wipeouts are not likely since the company has an excellent financial status.
Trading 212 Account Selection
Trading 212’s account selection comes unusual since it offers one standard account for investing and one for trading. Note that the Investment Account offers leverage trading, and it is important that clients understand the premise of both accounts so as to decide which one suits better for them.
With the imposed policy of the European Securities and Markets Authority (ESMA) regarding margin trading, Trading 212 then complied with the standard leverage ratio of 1:30. While this may greatly benefit those clients registered under ESMA-regulated brokers, this setup is proven disadvantageous for brokers as the practice are uncompetitive and counter-productive on their end.
Leverage has been an effective risk-management strategy. Disappointingly, those brokers regulated by ESMA often mistake the concept; thus allowing larger risks to perpetuate and, in turn, cause mounting losses for traders. With this kind of risk, clients are then recommended to open a demo account, which may come beneficial since it serves as a review of the platform’s overall functionality.
Similar to other brokers within the industry, Trading 212 offers a demo account. But what sets this broker from the others is its easy registration. Clients do not have to undergo through the taxing work of signing up and identity verification. More so, it is preloaded with a mock balance worth $50,000, with trades placed on the MetaTrader 4 platform.
Research and Education
Commendably, Trading 212 houses the most authoritative and beneficial learning materials. It has a separate section for analysis composed of live news updates, economic calendars, and calculators. As the company heavily prioritizes this aspect, it provides an encompassing learning that tackles trading fundamentals up to know-hows. More so, it houses its own training academy, which provides videos, webinars, articles, and interactive forum for a holistic and well-rounded learning experience.
While the system remains optimum and clients do not face many rough points in trading, Trading 212 still provides active lines of support. There are various means where queries may be placed through including a telephone line, a ticketing system, and email. What’s more impressive is the platform’s responsive live chat, which comes beneficial for those clients in need of immediate resolutions.
Considering the aforementioned review, it can be concluded that Trading 212 is a competitive broker. As the very first financial firm to offer commission-free trading, it comes as a surprise that it still upholds its objective even up to this day. If we look past through some of its disadvantages, one will then be compelled to place a sound investment with Trading 212.