Is Trading 212 Good For Beginners? Best Beginner Brokerage

Trading 212 is a good brokerage and offers a lot of features which other European brokerages don’t have. While other platforms are more established and well-known, Trading 212 is quickly gaining some attraction from investors. Whether you are a CFD or stock investor Trading 212 is an interesting platform.

Trading 212 is a good platform for beginners. The offered demo account offers learning of trading. CFD trading is commission-free and with tight spreads, while stock investing is fee- and commission-free. The platform is very user-friendly both in browser and app.

In the following sections, I will show you the benefits of Trading 212 for beginners.

What is Trading 212?

Overview of Portfolio in Trading212 "invest" Account
Overview of Portfolio in Trading 212 “invest” Account

Trading 212 is a platform similar to the American Robinhood and Webull brokerages. If you haven’t heard of those brokerages, it is essentially free stock trading brokers – zero fees and commissions. Trading 212 is exactly that, but for Europeans (any resident within EEA).

The traditional or older platforms in Europe always has a minimum percentage or wide spreads to make their profits. Trading 212 has streamlined their business and is offering free investing in ETFs and stocks with the possibility to purchase fractional shares. Purchases made in foreign currencies are exchanged at a live rate.

There is 3 types of accounts on Trading 212. The first is a demo account which is offered to new sign up. It has a fictional value of €50.000 for practising and understanding how to trade. The second account is “CFD”. The CFD account offers trading of stocks, commodities, forex and indexes. The CFD trading is commission free with only 0,5% fee of currency exchange.

The fractional shares plus zero commissions makes it possible for people at lower income brackets to get started with investing. Furthermore, if you are a CFD trader your profits will not be eaten by huge spreads and fees.

Trading 212 is a brokerage platform for European investors. Trading 212 is registered in Bulgaria and the UK and is authorized and regulated by FCA. Trading 212 is available for EEA citizens (any country in the EU + Switzerland). Furthermore, Trading 212 also hold funds in segregated account which is protected by the Financial Service Compensation Scheme for £85.000 per investor.

Pros

  1. Fractional Shares and ETFs.
  2. No commissions, no fees.
  3. +3000 global stocks and ETFs.
  4. Many deposit options (Bank transfer, credit/debit card, Skrill and Google Pay).
  5. User-friendly Interface (both on App and browser).
  6. Offers a demo account with €50.000.
  7. 24/7 live support.

Cons

  1. Been prone to be unresponsive/crash during peak times (E.g. when Tesla went to the moon at the end of January 2020).
  2. Unclear about spread (only relevant if you use CFD trading).
  3. Can be too simple at times.

What is the Features of Trading 212

Trading 212 has an app for iOS and Andriod. The app is made for ease of use. It has a simple interface with financial information about the bigger companies. Currently, they are implementing the financial numbers for the different companies, and you should therefore not expect to see financial numbers on all stocks.

Using the app it is possible to the portfolio size and the invested amount. This will not only give you the percentage gain or loss, but it also displays a greyed line in the graph to visually represent the invested against the current value.

Example of the portfolio value (blue line) and the invested value (grey line)
Example of the portfolio value (blue line) and the invested value (grey line)

The simple overview makes it less overwhelming to look at when starting to hold a lot of different stocks. Furthermore, the overview shows the amount of stocks owned. In the picture above you can see I own 0.4 shares of 3M and 1 share of American States Water.

Another great feature is fractional shares. So far European brokers have not implemented this feature, which is also why Trading 212 is so interesting. In the picture above you can see the icons of the stock’s icons. If the icon has a small blue circle with an “F” inside it is because you can buy fractional shares. This means that in the time of writing this, you could purchase fractional shares of 3M but not for American States Water.

In the CFD account, they also has some very nice features which is exceptionally important for beginners. First of all is the zero commissions. If you are a beginner you will most likely not be trading with big sums of money. Hence, with lower profits, you don’t want it to be eaten by big commission. Another is the protection against negative balance. This is important when trading leveraged products.

Why Trading 212 is Good For Beginners

Trading 212 is a very good platform for both new and old investor. Shown in the previous pictures is my own portfolio, and my experience has been very good so far. I will be using Trading 212 to purchase my stocks to build a dividend growth portfolio. And yes, you can even get dividends on fractionals shares.

Trading 212 has over 3000 different stocks and ETFs and therefore you will most likely be able to invest in your local businesses if that is what you like. If you want to purchase American stocks without insane fees that is now a possibility as well.

My experience so far has been pristine. I have gotten dividend payments, invested without fees or commissions and they are constantly added new features such as the financial numbers. Trading 212 is a good all-round platform no matter if your intention is to use the browser or app whether you will be long term stock investor with the “Invest” account or a day-trader with the “CFD” account.

I have deposited money without any issues and they also got proceeded very fast. the only fee that I ever paid was a stamp fee. However, a stamp fee is a tax enforced by the British government and therefore not a fee from Trading 212.

The simplicity and user-friendliness could make me say that it is the best platform for beginners. Although a bold statement, it could turn out to be true.

You can invest for as little as €1 per trade. Therefore, you have no excuse for not investing. I have made a full review of Trading 212 (opens a new window) you are welcome to read.

Disclaimer: This post may contain affiliate links. I may receive a commission when you, the visitor, uses an affiliate link. Investing involves risk of losses.
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ThePoorInvestor
I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments, and everything financially relevant.

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