Trading 212 - what do we think?

Aidanmc

Seems clear enough, unless T212 is just telling lies in their information

tkc1983

Aidanmc said:

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. 

Maybe to you that's enough evidence. Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

>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. 

That would be fine with 'banks and building societies' as they are covered by FSCS guarantees themselves. Trading 212 is not and that is the difference. 

tkc1983

clairec666 said:

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?

I agree that it's vague. 

However, I suspect the customers are not protected at all - it would be the owner of the accounts that is protected (Trading 212 in this case, that's of course if business money is covered).

I know they say the money is then 'transferred to individual' accounts but where are they? Do you have any details???

Trading 212 is NOT included in FSCS. It is registered as a firm but it's operations are not subject to FSCS guarantee. 

I TRULY wish I was wrong so please let me know if there are any FACTS to prove it.

booneruk

tkc1983 said:

Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

Have you tried the same for other banks? 

EDIT for clarity: It seems as if you're suggesting the FSCS are willing to confirm the status of other institutions but not T212

clairec666

tkc1983 said:

clairec666 said:

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?

I agree that it's vague. 

However, I suspect the customers are not protected at all - it would be the owner of the accounts that is protected (Trading 212 in this case, that's of course if business money is covered).

I know they say the money is then 'transferred to individual' accounts but where are they? Do you have any details???

Trading 212 is NOT included in FSCS. It is registered as a firm but it's operations are not subject to FSCS guarantee. 

I TRULY wish I was wrong so please let me know if there are any FACTS to prove it.

The info that Aidanmc posted above makes it clear, however another page on their website only referred to the failure of partner banks and not Trading 212 itself. I'm confident that my money's safe with them (I've only got a small amount with them) but I do find that these newer online-only banks are less fastidious with their T&Cs than "traditional" banks. I'm embroiled in a debate with them about their interpretation of the flexible ISA rules, which they don't appear to be applying correctly.

tkc1983

booneruk said:

tkc1983 said:

Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

Have you tried the same for other banks? 

EDIT for clarity: It seems as if you're suggesting the FSCS are willing to confirm the status of other institutions but not T212

Ok maybe I wasn't clear, but I tried using https://www.fscs.org.uk/check/check-your-money-is-protected/ and all my other accounts are guaranteed. 

wmb194

tkc1983 said:

booneruk said:

tkc1983 said:

Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

Have you tried the same for other banks? 

EDIT for clarity: It seems as if you're suggesting the FSCS are willing to confirm the status of other institutions but not T212

Ok maybe I wasn't clear, but I tried using https://www.fscs.org.uk/check/check-your-money-is-protected/ and all my other accounts are guaranteed. 

"Bank & savings protection checker - check your money is protected" It's a stockbroker, it's not going to be on that page. 

All the stockbrokers are the same, they have FSCS coverage for investments which covers maladministration, fraud and wind-up fees in the event of failure* and then for cash deposits you have the CASS rules and FSCS coverage described in the posts above. If you're not comfortable with it then just don't keep large amounts of cash with a stockbroker.

Trading212 is a profitable business so personally I'm not worried about it failing: you can find its most recent published accounts for 2024 on Companies House:

https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history

*E.g., you bought 100 shares but the broker actually only owns 90 the FSCS will make up the 10 shares up to a value of £85k.

tkc1983

wmb194 said:

tkc1983 said:

booneruk said:

tkc1983 said:

Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

Have you tried the same for other banks? 

EDIT for clarity: It seems as if you're suggesting the FSCS are willing to confirm the status of other institutions but not T212

Ok maybe I wasn't clear, but I tried using https://www.fscs.org.uk/check/check-your-money-is-protected/ and all my other accounts are guaranteed. 

"Bank & savings protection checker - check your money is protected" It's a stockbroker, it's not going to be on that page. 

All the stockbrokers are the same, they have FSCS coverage for investments which covers maladministration, fraud and wind-up fees in the event of failure* and then for cash deposits you have the CASS rules and FSCS coverage described in the posts above. If you're not comfortable with it then just don't keep large amounts of cash with a stockbroker.

Trading212 is a profitable business so personally I'm not worried about it failing: you can find its most recent published accounts for 2024 on Companies House:

https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history

*E.g., you bought 100 shares but the broker actually only owns 90 the FSCS will make up the 10 shares up to a value of £85k.

We are talking Cash ISA which is not an investment, right? But there is a tool for investments too https://www.fscs.org.uk/check/investment-protection-checker/ and still no luck with finding Trading 212.

wmb194

tkc1983 said:

wmb194 said:

tkc1983 said:

booneruk said:

tkc1983 said:

Im trying to get confirmation from other sources, like FSCS themselves but nothing seems to confirm the claims:(

Have you tried the same for other banks? 

EDIT for clarity: It seems as if you're suggesting the FSCS are willing to confirm the status of other institutions but not T212

Ok maybe I wasn't clear, but I tried using https://www.fscs.org.uk/check/check-your-money-is-protected/ and all my other accounts are guaranteed. 

"Bank & savings protection checker - check your money is protected" It's a stockbroker, it's not going to be on that page. 

All the stockbrokers are the same, they have FSCS coverage for investments which covers maladministration, fraud and wind-up fees in the event of failure* and then for cash deposits you have the CASS rules and FSCS coverage described in the posts above. If you're not comfortable with it then just don't keep large amounts of cash with a stockbroker.

Trading212 is a profitable business so personally I'm not worried about it failing: you can find its most recent published accounts for 2024 on Companies House:

https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history

*E.g., you bought 100 shares but the broker actually only owns 90 the FSCS will make up the 10 shares up to a value of £85k.

We are talking Cash ISA which is not an investment, right? But there is a tool for investments too https://www.fscs.org.uk/check/investment-protection-checker/ and still no luck with finding Teading 212.

It's a cash Isa with a stockbroker. The special thing about T212's cash Isa is that it doesn't use money market funds, only bank deposits. You need to look at the company's permissions on the FCA's register. If you're not comfortable with the way stockbrokers hold client cash you shouldn't use them, or at least not for a lot.

https://register.fca.org.uk/s/firm?id=001b000000NMi1QAAT

charlie12525

Lots of people are happy with them. Me, not so much.

Initiated 2 ISA transfers recently. One at Progressive building soc and the other at XTB.com for 2x transfers out of Trading212.

Both took about 2 months to complete with multiple problems. Wrong DOB on form (not by me), wrong form, they did a full when I asked for a partial etc.