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Introduction:
Trading 212 is a relatively new trading
platform that offers a user-friendly interface and commission-free trading.
With its sleek design and low barriers to entry, it has quickly become a go-to
choice for many newbie traders. However, the question of whether Trading 212 is
trustworthy and legitimate has arisen, and it's a valid concern for anyone
looking to start trading. In this blog post, we'll dive deep into the workings
of Trading 212 to determine whether it is a real broker and worth your
investment.
Trading 212 is a registered broker with the FCA (Financial
Conduct Authority) in the UK. Its operations are regulated and authorized by
the regulatory body, which is a good sign that it is a legitimate broker. When
you open an account with Trading 212, your funds are held in segregated
accounts, which means they are kept separate from the firm's own funds. This
adds a layer of security for investors should anything happen to Trading 212.
Trading 212 makes money from two sources: the spreads on
trades and currency conversion fees. In terms of spreads, Trading 212 offers
competitive rates that are comparable to other top trading platforms. The
currency conversion fees, on the other hand, are slightly higher than what
you'd get with other top brokers. However, this is a common practice, and the
fees are still reasonable.
Trading 212's asset selection is not as extensive as other
brokers, but it covers the major markets, including forex, stocks,
cryptocurrency, and commodities. It's an excellent platform for newbies or
those who want to invest in a few popular assets without feeling overwhelmed.
Trading 212 also offers a demo account that allows traders to practice trading
with virtual funds before investing real money.
Trading 212 is a reputable broker with a solid reputation.
It has attracted a significant number of customers since its inception, and
it's clear that they are satisfied with the platform. The customer support team
is responsive and helpful, and the company is transparent in its operations.
They have an active social media presence, and their platforms are regularly
updated to improve the user experience.
Conclusion:
Trading 212 is a real broker that has been
operating since 2004. It is registered and regulated by the FCA, which adds
legitimacy to the platform. It's a great choice for newbie traders who want a
user-friendly interface and low barriers to entry. Although Trading 212's asset
selection isn't as extensive as other brokers, it covers the major markets. The
currency conversion fees could be lower, but they are still reasonable.
Overall, Trading 212 is a trustworthy broker that's worth considering if you're
looking to start trading.