IS TRADING 212 the best option for ISA?

Sam3007

Hi there,
I have both my LISA and SIPP with AJ bell. 

I have been considering opening an ISA to invest small amounts for the coming 10 years or so. 

After doing some research, I decided to go with trading212 because as far as I read it is “free” 
my questions are :
is it really free to invest ?
does it matter if I invert in stocks or index funds because I heard the I need to pay some kind of tax or fees if I sell individual stocks ?
Thanks 

Voyager2002

Yes, it is really free. And if you can get someone like me to refer you, they give you a free share.

There are no taxes nor anything to pay on capital gains on investments within an ISA. You do still need to pay stamp duty when buying securities listed in London (not ETFs).

Trading212 offers additional services (such as CFDs and a credit card) on which they are likely to make money, but you don't have to buy these.

Beddie

If it's "small amounts" then the charges will be very low at AJ Bell too, and you have it all in one place for ease of admin.

But T212 are good and I use them, happy so far.

You do pay 0.5% stamp duty if you buy UK shares, even within an ISA.

Sam3007

Voyager2002 said:

Yes, it is really free. And if you can get someone like me to refer you, they give you a free share.

There are no taxes nor anything to pay on capital gains on investments within an ISA. You do still need to pay stamp duty when buying securities listed in London (not ETFs).

Trading212 offers additional services (such as CFDs and a credit card) on which they are likely to make money, but you don't have to buy these.

Thanks for the details.
i have already opened the account and is ready to be funded.
If I buy say Microsoft and Tesla stocks and hold them for 5 to 10 years, do I need to pay any fees or stamp duty to transfer the fund to my bank account ?

Sam3007

Beddie said:

If it's "small amounts" then the charges will be very low at AJ Bell too, and you have it all in one place for ease of admin.

But T212 are good and I use them, happy so far.

You do pay 0.5% stamp duty if you buy UK shares, even within an ISA.

How come the articles i stumble across say that trading 212 is much cheaper?
I plan to invest around 5 to 10k

(Somebody with a £300,000 portfolio of shares who makes 20 trades a year, spread across various months, would be charged £284 on Hargreaves Lansdown, £142 on AJ Bell as of April, £59.88 with Freetrade and nothing with Trading 212)

Petriix

I suspect that Trading212 take a little extra out of the spread on market orders. Someone on here recommended exclusively using limit orders to avoid this but these can go unfulfilled.

Beddie

Sam3007 said:

Beddie said:

If it's "small amounts" then the charges will be very low at AJ Bell too, and you have it all in one place for ease of admin.

But T212 are good and I use them, happy so far.

You do pay 0.5% stamp duty if you buy UK shares, even within an ISA.

How come the articles i stumble across say that trading 212 is much cheaper?
I plan to invest around 5 to 10k

(Somebody with a £300,000 portfolio of shares who makes 20 trades a year, spread across various months, would be charged £284 on Hargreaves Lansdown, £142 on AJ Bell as of April, £59.88 with Freetrade and nothing with Trading 212)

The annual charge at AJ Bell for £5k is just £12.50, less until you reach that amount obviously. However the £5 fee for purchasing shares will soon add up if you are buying regularly.

But yes, T212 is all free, so obviously the cheaper option!

Alexland

Beddie said:
However the £5 fee for purchasing shares will soon add up if you are buying regularly.

If you are buying shares regularly as part of a monthly trade plan then AJ Bell reduce it to £1.50.

Petriix

Alexland said:

Beddie said:
However the £5 fee for purchasing shares will soon add up if you are buying regularly.

If you are buying shares regularly as part of a monthly trade plan then AJ Bell reduce it to £1.50.

I've got 13 different investments on T212 adding up to around £500 which I will increase slowly over time, buying £5-25 worth at a time. It would be ludicrous for me to pay even £1.50 per trade. I'll stick with occasionally paying 1p extra in the spread. 

Alexland

Petriix said:

I've got 13 different investments on T212 adding up to around £500 which I will increase slowly over time, buying £5-25 worth at a time. It would be ludicrous for me to pay even £1.50 per trade. I'll stick with occasionally paying 1p extra in the spread. 

I'm slightly amazed there are people spreading £500 over 13 investments.

All the accounts I manage are simplified to just 1 investment each.

Petriix

Alexland said:

Petriix said:

I've got 13 different investments on T212 adding up to around £500 which I will increase slowly over time, buying £5-25 worth at a time. It would be ludicrous for me to pay even £1.50 per trade. I'll stick with occasionally paying 1p extra in the spread. 

I'm slightly amazed there are people spreading £500 over 13 investments.

All the accounts I manage are simplified to just 1 investment each.

I don't expect many people are like me. I'm pretty risk-averse and I wanted to dip my toes in a few things. But that's the advantage of something like T212. It gives me the chance to try things out and learn how it works before I commit any significant amount of money.