ISA - Stocks and Shares

dunstonh

slenderkitten said:

Petriix said:

slenderkitten said:

Albermarle said:

slenderkitten said:

Petriix said:

Knowing nothing about buying shares, I've just opened a Stocks and Shares ISA with Trading 212. I got a free random share worth £44 by using a referral link. They give 1% cashback (which you can't withdraw for a year) on any ISA deposits and pay 5.2% variable interest on anything held as cash. They also seem to charge no commission on any trades.

I'm sure more experienced people can tell you the potential down sides, but this seems pretty decent in comparison to other platforms. 

That sounds interesting but how are they not charging fees as you say, how are they making money? Are they a legit company?

Yes they are legit.
They will lose money gaining market share, and then either start to introduce charges for premium service, or get bought out for the customer base. ( especially if they still losing money after a couple of years)
Also they have a larger part of their business which is trading in CFD's. This is more profitable and much more risky for the punter ( it is just gambling really).
I suspect by getting customers for ISA's, they hope to tempt then into the CFD side.

I looked on trustpilot some people saying the company makes it difficult to move the money elsewhere, this puts me off, what do you think about this?

I'm not sure about transfers, but withdrawing cash seems pretty standard. I've just asked for a £1 withdrawal to my linked account and it says it will take 3 working days to arrive. 

I've responded to your invite in PM, thought I would add this here,  why do they get bad reviews https://www.mywot.com/scorecard/trading212.com I have to admit it is alarming, thought from what i have read so far they seem to have invested huge amounts which I wouldn't be doing.

Be wary of invites etc via PM.  Indeed, the board admin may take a dim view on that if reported. 

Negative reviews may well be because 4 out of 5 people doing trading lose money.  Trading is a bit of a mugs game.  Investing is different though.   However, reading some of the reviews on that site you linked suggests fake reviews or scam links.

Treehoger1

I opened Trading212 ISA in this new tax year. I thought I would qualify for their cash back offer. I only had trading account with them prior to that. But I have not received any cash back and when asked them, they said that I don't qualify because I clicked into their ISA in May last year. I just really can't believe this. I clicked in ISA and I clicked in CFD but it surely doesn't mean I had opened these accounts? I made a complaint, not sure what will come out of it. But I am very disappointed now and lost trust, so thinking of going elsewhere.

I find some conflicting info online about opening more than one ISA in a tax year now. HM revenue say that it is allowed to open more that one type. But I thought I could open more within 1 type? 

slenderkitten

Get 1% cashback on all ISA deposits throughout the 24/25 tax year The promotion is valid for new clients who sign up before the end of April. Terms apply. OFFER ENDS APRIL 30TH Invest in an ISA with zero commission and zero account fees

I used a different browser it shows up the above promotion, i coudn't see it on the invite link does that mean i would not get that because of the 100 Fractional shares offer for referrals?

dunstonh

I find some conflicting info online about opening more than one ISA in a tax year now. HM revenue say that it is allowed to open more that one type. But I thought I could open more within 1 type? 

It was a rule change on 6th April 2024

Treehoger1

Thank you dunstonh, so to clarify, now after 6th April, I can definitely open at least two ISAs of the same type, ie, to stock and shares ISAs?

Voyager2002

slenderkitten said:

Petriix said:

Knowing nothing about buying shares, I've just opened a Stocks and Shares ISA with Trading 212. I got a free random share worth £44 by using a referral link. They give 1% cashback (which you can't withdraw for a year) on any ISA deposits and pay 5.2% variable interest on anything held as cash. They also seem to charge no commission on any trades.

I'm sure more experienced people can tell you the potential down sides, but this seems pretty decent in comparison to other platforms. 

That sounds interesting but how are they not charging fees as you say, how are they making money? Are they a legit company?

I also have an account with Trading 212. Clearly they are building a customer base and burning through their marketing budget to expand. Doubtless fees will be introduced later. And they do offer various options with fees attached.

Anyway, I am confident that they are a legitimate company.

Sea_Shell

slenderkitten said:

Get 1% cashback on all ISA deposits throughout the 24/25 tax year The promotion is valid for new clients who sign up before the end of April. Terms apply. OFFER ENDS APRIL 30TH Invest in an ISA with zero commission and zero account fees

I used a different browser it shows up the above promotion, i coudn't see it on the invite link does that mean i would not get that because of the 100 Fractional shares offer for referrals?

If the cashback is for "investing" rather than just depositing with them, and you said you were going to start small, is that cashback actually going to be worth much to you.   

Even if you invested £500 (which I don't consider that small for dipping your toe in, as a novice), it will be worth £5

A market drop could easily see that £5 wiped out.     How would you feel then? 

How much, as a percentage of your current cash savings are you looking to invest?   10%, 20%.   

eg, if you have £5000 currently in cash, an investment of £500 would be 10%.    


@dunstonh
Is 10% about the right proportion one should risk, as a novice to investing, as a rough rule of thumb?   

slenderkitten

I'm only doing £50 to start off with so i can see how this all works.

Petriix

I got the referral free share and also cashback. The cashback is on all ISA deposits, even those just held as cash and not used to buy shares.

I've paid in £450 of my own money so nothing life-changing. It seems like a nice platform for dipping your toes into shares with lots of clear information. There are a proportion of negative reviews on Trust pilot but an average of 4.6 seems fine.

slenderkitten

It said something about the cashback is for the Invest part of it not the ISA so i've to set up an account with that part of the site, i dont know what the costs are for that side of it though?