You might be wondering why someone with investing experience would choose to invest their money with Trading212 for their Stocks & Shares ISA over other big-name brokers. Well, it’s simple – fees!
Trading212 has shaken things up in the fee department. No trading commissions, no holding fees, no withdrawal or deposit fees. Nada! The only fee you’ll see is a 0.15% FX fee when you’re buying assets not priced in GBP.
It’s a no-brainer! Why would I go with a broker that’ll bleed me dry just to invest? They all offer the same protection, they’re all FCA regulated, and they’re all based in the UK. So why pay more?
Broker Fees Comparison
| Broker | Trading Fees | Fund Fees | Subscription | FX Fees | Fractional Shares |
|---|---|---|---|---|---|
| Trading212 | Free | Free | No Subscription | 0.15% | Yes |
| Freetrade | Free | Free | Free to £9.99/month | From 0.99% to 0.39% | Yes |
| Hargreaves Lansdown | £11.95 per trade | 0.45% annually | No Subscription | 1%-0.25% | No |
| Interactive Investor | £5.99 per trade | No additional platform fee | £4.99-£19.99/month | 1%-1.5% | No |
| AJ Bell | £9.95 per trade | 0.25% annually | No Subscription | 1% | No |
Let’s compare, shall we? Hargreaves Lansdown hits you with 0.45% for holding funds, £11.95 for share dealing, and 1%-0.25% FX fees. Interactive Investor? They’ve gone subscription-style, charging £4.99 to £19.99 monthly, plus £5.99 for share dealing and a hefty 1.5% FX fee. Why fork out for these high fees when you can pay next to nothing?
Sure, these big brokers are after the high rollers who won’t blink at these fees. But guess what? There are plenty of savvy pros using Trading212 for the exact same reason I am.
Now, you might be thinking, “But isn’t my money safer with a company that’s been around longer?” Not really. Any of these firms could go belly-up at any time. That is why all FCA-regulated firms are required to be registered with the Financial Services Compensation Scheme (FSCS), which protects your cash deposits up to £85,000.
One thing to keep in mind – Trading212’s whole low-fee deal hinges on that 0.15% FX fee. So if you’re planning to go heavy on non-GBP assets, those fees could start to bite. But for a UK-focused portfolio? It’s hard to beat.
A Simple and Easy to Use Platform
The Trading212 platform stands out with its clean, intuitive interface that simplifies the investing process. Newcomers to the stock market will find the layout logical and easy to navigate, while experienced traders can still access the tools they need without clutter.
A standout feature of Trading212 is its fractional share dealing. This allows investors to buy portions of high-value stocks, particularly useful for accessing pricey US shares. For example, instead of shelling out thousands for a single share of a tech giant, users can invest with as little as £1.
The platform doesn’t skimp on learning resources either. It offers a rich library of video tutorials and articles, covering everything from basic investing concepts to advanced trading strategies. For those who prefer learning by doing, the demo account feature lets users practice with virtual money, providing a risk-free environment to test strategies and get to grips with the platform.
Trading212’s mobile app deserves a mention too. It mirrors the desktop experience closely, ensuring users can manage their investments on the go without feeling like they’re missing out on functionality. Real-time price alerts, a feature often reserved for premium services on other platforms, come standard here.
While Trading212 offers a solid range of investment options it’s worth noting that the selection might not be as extensive as some larger, more established brokers. However, for most investors, especially those focusing on popular markets, the options available should be more than sufficient.
The platform also includes some nifty tools like “Pies” – customisable portfolios that allow users to create their own fund-like structures or invest in pre-made ones. This feature, combined with the AutoInvest tool for setting up recurring investments, makes it easier for users to maintain a disciplined, long-term investing approach.
In essence, Trading212’s platform successfully balances simplicity with functionality, making investing more accessible without sacrificing the tools needed for more involved trading strategies.
Frequently Asked Questions
What is the maximum I can invest in a Stocks and Shares ISA a year?
The maximum you can invest in a Stocks and Shares ISA per year is £20,000.
What is the difference between a fund and a stock?
A stock represents ownership in a single company, while a fund pools money from multiple investors to invest in a diversified portfolio of assets.
Can I withdraw my money at any time?
You can withdraw your money from a Stocks and Shares ISA at any time, but it may impact your tax-free allowance if you reinvest.
What type of accounts does Trading212 offer?
Trading212 provides a Stocks and Shares ISA, a Cash ISA, a General Investing account, and a CFD account for speculative trading.
