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Trading 212 - what do we think?

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  • Withdrew 5k and was in my santander account immediately 
  • mrcoxexcel
    mrcoxexcel Posts: 8 Forumite
    Part of the Furniture First Post Combo Breaker
    I would certainly not recommend  Trading 212 for a cash ISA. They are happy to take your money and they do keep you alerted to the interest that’s paid but they don’t pay the full interest – I expected a bonus rate as advertised but they failed to provide it and subsequently failed to respond to my email asking why I was not getting the  bonus rate.
    Now that I’m trying to transfer it out to an ISA with a better company they seem to be deliberately delaying the transfer and, when I queried the delay, saying that it can take up to 30 days. 
    So they happily take your money, don’t pay the full rate and then delay as much as they possibly can the transfer to another provider. Poor management, poor service and, frankly, not a company I could ever recommend.
  • northw00d
    northw00d Posts: 2 Newbie
    First Post
    proving difficult to transfer cash isa from Trading212 to another provider. They cannot agree method between them leaving me in impasse!
  • Aidanmc
    Aidanmc Posts: 1,296 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 7 May at 12:12AM
    Also having difficult with ISA transfer from T212 to Vida
    Vida say they sent the transfer request, T212 say they have no record of a transfer request.
  • tkc1983
    tkc1983 Posts: 9 Forumite
    Fifth Anniversary Combo Breaker First Post
    The interest rate looks tempting, but I'm worried about the protection:

    Trading 212 is NOT fscs protected

    the accounts they use are, but these are not customer accounts, so you CANNOT make a claim to fscs, or am I missing something?
  • Aidanmc
    Aidanmc Posts: 1,296 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 10 July at 9:25AM
    tkc1983 said:
    The interest rate looks tempting, but I'm worried about the protection:

    Trading 212 is NOT fscs protected

    the accounts they use are, but these are not customer accounts, so you CANNOT make a claim to fscs, or am I missing something?

    Cash ISA is protected up to 85K
    Cash in S&S ISA protected up to 85K
    Cash in Invest account protected up to 85K (not if invested in QMMF though)
    Be aware of the bank groups used though as the 85k would be all deposits within the particular banking group.

  • tkc1983
    tkc1983 Posts: 9 Forumite
    Fifth Anniversary Combo Breaker First Post
    Thanks for replying. 

    The problem is that with Trading 212 you are NOT paying money into your account, instead you are transferring money into theirs bank account (Chase, and so on) and Trading 212 is ONLY accounting that amount to your virtual account with them. I don't really see how FSCS can be protecting any of this.

    In other words, check who is 'beneficiary' of the account you are paying in. As far as I understand, only the beneficiary could (in theory) claim from FSCS.
  • tkc1983
    tkc1983 Posts: 9 Forumite
    Fifth Anniversary Combo Breaker First Post
    By the way, i don't think Cash ISA is protected by default. It only is protected when the provider is covered by FSCS. Again, note that having FRN is not sufficient. 
  • Aidanmc
    Aidanmc Posts: 1,296 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 10 July at 3:05PM
    tkc1983 said:
    By the way, i don't think Cash ISA is protected by default. It only is protected when the provider is covered by FSCS. Again, note that having FRN is not sufficient. 
    The cash ISA is protected. Have you read the link above.

    Your cash is kept separate from our own

    When you use our Cash ISA product, 100% of your money is held at some of the world's largest banks. We appoint and review the banks, monitoring them continuously to ensure they remain appropriate to hold client money. Client money is segregated and held separately from our money in client money bank accounts. Your money is ring-fenced, meaning legally binding agreements ensure that your money belongs to you and cannot be accessed or used by us, the bank or anyone else, even in the event of firm failure.

    FSCS protection

    Your money is also protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per partner bank. This means that, in the unlikely event that one of our appointed partner banks fails, your money held with that bank is protected up to this limit.

    It's important to note that the £85,000 limit applies to the total amount of money you hold at each specific bank, whether it's deposited by Trading 212, other providers, or by you directly. For transparency, the percentage of your cash held at each bank is available in the app under the "Interest on Cash" tab.


    Many banks and building societies and investment firms you deposit to their accounts and then its allocated to your own account using a reference number or similar. 
  • clairec666
    clairec666 Posts: 262 Forumite
    100 Posts Name Dropper
    Aidanmc said:

    FSCS protection

    Your money is also protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per partner bank. This means that, in the unlikely event that one of our appointed partner banks fails, your money held with that bank is protected up to this limit.
    I think this is what people are finding unclear - if one of the partner banks fails, you are protected, but what if Trading 212 itself fails?
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