Trading212 Stocks & Shares ISA - investing in VWRL with no cost?

icypear

HI All,

I would like to open a S&S ISA and am looking at finding the most suitable and cost efficient platform that allows

1. investing in index funds such as Vanguard VWRL
2. individual share trading (holding for months to a year) within an ISA wrapper

I have been comparing platforms and costs and I see that Trading212 are zero fee and have Vanguard's VWRL ETF:

VWRL  Vanguard FTSE All-World UCITS ETF  GBP  IE00B3RBWM25  0.01  London Stock Exchange  8:00 am to 4:30 pm

Is there something I am missing, how can trading212 offer this at zero cost? I am generally sceptical about companies that seem to offer something too good to be true, am I missing something with them?

From looking around the next best seem to be iWeb, any advice in regards to these 2 platforms and specifically if there is something I have missed about trading212.

city_of_london

There is always a bid-offer spread when buying ETFs (i.e. a higher price when buying than when sellling). So I wonder if trading212 are skimming a bit off by widening the spread somehow; though I don't know whether they would be allowed to do this.

Alternatively, perhaps they will just go out of business because they don't make any money. And then it will be a long delay and a lot of stress (see the thread on SVS Securities going out of business) before you can get your VWRL holding transferred to IWeb. Personally, I'd just go with IWeb in the first place, and pay the fiver.

masonic

I think there is a big difference between the risk of holding your investments through iWeb (part of Halifax Sharedealing) and a fringe provider like trading212. Well worth paying the one-off £25 opening fee and £5 trading fee for iWeb. The trading cost is good for instilling discipline - after all, you won't be trading much, will you?

FWIW my experience with trading212 (used them just for a joining incentive) is that they pool orders to save costs - trades I placed were not live and in some cases took a while to execute.

icypear

masonic said:

I think there is a big difference between the risk of holding your investments through iWeb (part of Halifax Sharedealing) and a fringe provider like trading212. Well worth paying the one-off £25 opening fee and £5 trading fee for iWeb. The trading cost is good for instilling discipline - after all, you won't be trading much, will you?

FWIW my experience with trading212 (used them just for a joining incentive) is that they pool orders to save costs - trades I placed were not live and in some cases took a while to execute.

Thankyou. Do you know if ETF execution on iweb is immediate at the live price?

masonic

icypear said:

masonic said:

I think there is a big difference between the risk of holding your investments through iWeb (part of Halifax Sharedealing) and a fringe provider like trading212. Well worth paying the one-off £25 opening fee and £5 trading fee for iWeb. The trading cost is good for instilling discipline - after all, you won't be trading much, will you?

FWIW my experience with trading212 (used them just for a joining incentive) is that they pool orders to save costs - trades I placed were not live and in some cases took a while to execute.

Thankyou. Do you know if ETF execution on iweb is immediate at the live price?

Yes, when markets are open you'll get a live quote and a few seconds to review the price and confirm the order.

DireEmblem

Just a thought, but VWRP is now available - the GBP Accumulation version.