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Trading 212: The Online Brokerage Revolutionizing Investing

Trading 212: The Online Brokerage Offering an Array of

Investment Products

Investing your money can be a daunting task, especially when you’re new to the world of finance. But Trading 212, the online brokerage platform, has made it easier for anyone to start investing in the stock market.

Trading 212 offers a range of investment products, including


CFD, and

ISA, that cater to different needs and levels of experience.


One of the standout features of Trading 212’s

Invest product is the commission-free trading it offers. This means that you won’t be charged any trading fees when you buy or sell shares, which can save you a considerable amount of money in the long run.

Additionally, Trading 212 allows you to invest with fractional shares, which means that you can buy a portion of a single share rather than a whole one. This is especially beneficial for investors who are new to the stock market and may not have the funds to buy a full share of expensive stocks like Apple or Amazon.

Another great feature of Trading 212’s

Invest product is Auto

Invest. This is an innovative tool that automatically invests your money into hand-picked stocks without you having to lift a finger.

It’s ideal for those who want to invest their money but may not have the time or expertise to manage their portfolio. You can choose between pre-made curated portfolios or create one based on your investment preferences.

Regulatory Information

Trading 212 is regulated by the Financial Conduct Authority (FCA) in the UK, an independent financial regulatory body that aims to protect consumers and maintain the integrity of financial markets. This means that Trading 212 is obligated to comply with strict industry standards set by the FCA, ensuring that you’re protected when investing through the platform.

Furthermore, Trading 212 is a participant in the Financial Services Compensation Scheme (FSCS). The FSCS is a UK government-backed scheme that protects customers in the unlikely event that Trading 212 goes bankrupt or is unable to repay customer funds.

The FSCS provides compensation of up to 85,000 per customer, per financial institution.


CFD, or Contract for Difference, is an investment product that allows you to speculate on the changes in the price of underlying assets without owning them. Trading 212’s

CFD platform gives you access to trade on a wide range of assets, including commodities, indices, and currencies.

One of the key features of Trading 212’s

CFD platform is its risk management tools. Trading 212 allows you to set stop-loss limits, meaning that your position will automatically close when the value of your investment reaches a certain point.

This feature helps minimize your losses. Additionally, the platform provides you with alerts if your position is at risk of being closed due to insufficient funds in your account.

Trading 212

CFD Statistics

It’s worth noting that trading

CFDs carries a higher level of risk compared to traditional investing. According to Trading 212’s data, 76 percent of retail investor accounts lose money when trading

CFDs with Trading 212.

This highlights the importance of understanding how

CFDs work and the risks involved before trading them.



ISA (Individual Savings Account) is a type of account that allows you to invest up to a certain amount per year without paying tax on your capital gains and income. Trading 212’s

ISA product is tax-sheltered, meaning that any profits made from investments held within the

ISA are free from income tax or capital gains tax.

Additionally, Trading 212 does not charge any administration fees, making it a cost-effective way to save. Regulations for


Trading 212’s

ISA product is regulated by the FCA, ensuring that it adheres to industry standards to protect consumers.

Additionally, the

ISA is covered by the FSCS, offering further peace of mind to investors.


Trading 212’s range of investment products caters to different investment preferences and levels of experience. The

Invest product offers commission-free trading, fractional shares, and Auto


CFD provides access to a wide range of assets and risk management tools. The

ISA product is tax-sheltered and has no administration fees.

Furthermore, Trading 212 is regulated by the FCA and covered by the FSCS, ensuring investor protection. Remember to do your research and assess your own risk tolerance before investing using the platform.

The History of Trading 212: From Garage Start-Up to Zero-Commission Pioneer

Trading 212 was founded in 2004 by Ivan Ashminov, Bulgarians Boris Nedialkov and Philip Genov. The three were working as IT specialists in Sofia when they decided to start their own company.

The idea of creating an online forex trading platform dawned on them after struggling to find a reliable platform for their personal use. Thus, Trading 212 was born as a garage start-up that quickly grew to become a significant player in the brokerage industry.

Expansion and Regulatory Milestones

In 2012, Trading 212 received its brokerage license from the FCA in the UK, paving the way for expansion. The company set up an office in London to cater to the growing number of clients in the UK.

Later in the same year, Trading 212 launched Tradebird, a social network for traders that allowed users to share their trades and communicate with each other.

Shift Towards Zero-Commission Trading

In 2016, Trading 212 became one of the first online brokers to offer zero-commission stock trading. This move was a game-changer in the industry, as it allowed clients to invest in stocks without worrying about trading fees.

Since then, Trading 212 has expanded its zero-commission offering to include shares, forex, and cryptocurrency trading. The platform also provides unlimited trading options that attract many clients compared to its industry competitors.

Recent Growth and Setbacks

In January 2020, Trading 212 reported that it had added one million new users to its platform in just four months. The surge in demand was due to the coronavirus pandemic causing many people to spend more time at home and invest in stocks online.

However, the company faced a setback when it had to halt account creation temporarily due to the increased demand for its services. Some users also reported issues with trade execution times being slow or trades not executing at all.

Despite these challenges, Trading 212 managed to double its profit in 2020 compared to the previous year. The company’s success has been attributed to its ability to provide its clients with high-quality, low-cost trading and investing services.

How Trading 212 Makes Money

Trading 212 makes money through various channels, including spreads, stock lending, overnight and weekend fees, and currency conversion fees.


When you trade on Trading 212, you’ll notice that there are two prices displayed on the platform: the bid (the price at which you can sell) and the ask (the price at which you can buy). The difference between these prices is known as the spread.

Trading 212 earns revenue by charging a spread on each trade that you make. This spread income is the difference between the bid and ask prices.

Back-to-Back Hedging

Trading 212 employs a back-to-back hedging system to manage risk when you make a trade. This system involves taking a trade on the opposite side of the client’s position to ensure that Trading 212’s risk is neutralized.

The difference between the price that Trading 212 enters the market and the price that the client enters the market is known as the hedging cost. Trading 212 earns money by charging clients a markup on this cost.

Stock Lending

Trading 212 earns income by lending out shares to other investors. This practice is known as share lending, where Trading 212 allows the shares held by its clients to be used as collateral by other investors.

The company earns interest on the funds that it lends out, resulting in a share lending income. Some of the securities offered by Trading 212 for share lending included US Treasury Bonds, where interest income was guaranteed because these securities are considered safe.

Overnight and Weekend Fees

When you trade with Trading 212, you may be subject to overnight and weekend fees. Overnight fees, also known as financing, are charged for holding a position after the market closes.

Weekend fees, also known as rollover costs, occur when a position is held during the weekend. These fees are typically calculated based on the size of your position and the interest swap rates for the currencies involved.

Currency Conversion Fees

When you trade on Trading 212, you may have to convert currencies from your account currency to the currency of the instrument you want to buy or sell. Trading 212 charges a currency conversion fee for these conversions, which is a percentage of the transaction amount.

Additionally, when you receive dividend payments, Trading 212 may charge a currency conversion fee to convert the dividend payment to your account currency. This fee is charged on both BUY and SELL orders.


Trading 212 is an online brokerage platform that has come a long way from its days as a garage start-up. Its innovative approach to online trading has seen it become one of the leading brokerage companies globally.

The company initially started with forex trading, then expanded through the years, and its unique approach to zero-commission trading has redefined the industry. Trading 212 makes money through multiple channels, including spreads, stock lending, overnight and weekend fees, and currency conversion fees.

Despite its recent setbacks, the company’s success has proven why its services are relevant and dependable. To summarize, Trading 212 is an online brokerage platform that offers a range of investment products, including commission-free trading,

CFDs, and

ISAs. The company began as a garage start-up and has since expanded to become a household name in the industry.

Trading 212 makes money through several channels, including spreads, stock lending, overnight and weekend fees, and currency conversion fees. The company’s innovative approach to zero-commission trading has disrupted the industry and attracted over a million users to the platform.

Despite recent challenges, Trading 212’s success demonstrates the importance of accessible and affordable investing.

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