Trading 212 Invest : Polite warning if holding only cash.

Veteransaver

I hold only cash and never trade, I have yet to be warned about this, however I do have a small fractional share holding worth about £10 where they gave away free shares to new customer, so maybe just holding a small investment is enough to stop any warnings?

Hoenir

Ayr_Rage said:

@akm2018 how about the first line above the waving hand, did you miss that?

"Keep your benefits active" 

Seems a veiled threat that the interest benefit could be axed.

Account closure ultimately is the more likely course of action. 

george4064

I could be a (perhaps poorly worded) prompt to account holders with large cash balances with no investments, the risks of keeping a lot of your savings in cash than investing.

Not sure if that's prompted by the regulator or not, but could be T212 just trying to get more customers to invest or try CFDs.

dunstonh

george4064 said:

I could be a (perhaps poorly worded) prompt to account holders with large cash balances with no investments, the risks of keeping a lot of your savings in cash than investing.

Not sure if that's prompted by the regulator or not, but could be T212 just trying to get more customers to invest or try CFDs.

As mentioned earlier in the thread, it is an FCA requirement.

Several years ago, the FCA did a review and found non-advised platform accounts held more in cash than advised platforms by some margin.   It was concerned that people would go into cash and end up staying there.    So, it required the platforms to issue a notification periodically when the ratio of cash to investments was above a certain amount.

Nova1307

I received a 'warning' saying a recent deposit I made represents a significant % of my declared annual income which I disclosed as part of the annual financial info update. I didn't disclose savings info which IMO is an invasion of privacy and I was dubious about why they wanted such data when other trading platforms don't ask for it. 

I haven't invested the cash and have just left it to earn 4.5% interest and have since received another email saying if patterns persists I may experience a 24 hour trading block to open new positions even though I haven't bought any new shares in months. 

Anyone else experience this? I don't know if they have some AI tech reviewing customer accounts but it feels like these warnings are a bit OTT or unnecessary. I'm tempted just to withdraw the cash if they're going to continue sending such emails. 

wmb194

Nova1307 said:

I received a 'warning' saying a recent deposit I made represents a significant % of my declared annual income which I disclosed as part of the annual financial info update. I didn't disclose savings info which IMO is an invasion of privacy and I was dubious about why they wanted such data when other trading platforms don't ask for it. 

I haven't invested the cash and have just left it to earn 4.5% interest and have since received another email saying if patterns persists I may experience a 24 hour trading block to open new positions even though I haven't bought any new shares in months. 

Anyone else experience this? I don't know if they have some AI tech reviewing customer accounts but it feels like these warnings are a bit OTT or unnecessary. I'm tempted just to withdraw the cash if they're going to continue sending such emails. 

You should declare your savings info. These days it's common for financial institutions including stockbrokers to ask this. It's part of the KYC regulations.