Trading 212

LB3310

Hi,

Is Trading 212 a good way to start investing?

Thanks

MSE_ForumTeam5

We've moved this question to a more suitable part of the forum

eskbanker

https://forums.moneysavingexpert.com/discussion/6656684/trading-212

The best way to start investing is to establish what you're hoping to achieve by doing so, over what sort of timescales and with what sort of risk tolerance, and then to devise a strategy, followed by identifying suitable tax wrappers and investments, and only at the last stage, choosing a platform via which to buy and hold your investments.

Exodi

It's a bit of a nuanced question, because while Trading 212 is a good and credible investment platform, whether it's a good way to start investing depends on how you intend to use it.

If you intended to start on T212 with CFD's or day trading individual stocks, then that would not be a good way to start investing.

Tesco is a good place to buy food for someone starting a diet, but not if they were to go to there to buy cakes and donuts.

Maybe I'm reading too much into this, but your question is framed in a way that you think Trading212 would be making the investment decisions for you? If so, I'd encourage more research on investing in general, particularly on 'active' and 'passive' investing. Trading 212 is focused on passive investments. If you were interested in active investments (which seek to simplify the decision making process), then there are other platforms (e.g. Vanguard, Invest Engine, etc) available - though these funds usually charge more and have historically performed worse.

dunstonh

https://forums.moneysavingexpert.com/discussion/6656684/trading-212

it may be. It may not.

It is a platform with advanced investment options which can result in total loss. So, its not for an inexperienced individual who needs safeguards to prevent them from doing silly things.

gpman

https://forums.moneysavingexpert.com/discussion/comment/81897328#Comment_81897328

Perhaps also worth mentioning that T212 offer a 'play' area where you try out your investment strategy without risk (or reward!).
Iirc, they term this 'Practise mode' as opposed to 'Real Money'

cloud_dog

https://forums.moneysavingexpert.com/discussion/6656684/trading-212

T212 is not a platform I would recommend for a novice / someone starting out. The options can be risky; obviously an individual needs to select and confirm those options, but even so. And I find the UI very 'gamified'.

Whilst I do use T212 I find the whole UX far from good (my impression).

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81897459#Comment_81897459

You would only really know if a proper investment strategy had worked many years down the line and through at least a couple of market cycles, so this ' play area' would be of no use in that respect.

I presume it is more aimed at short term trading, which is where T212 makes its money and wants to tempt customers into this risky area.

gpman

https://forums.moneysavingexpert.com/discussion/comment/81897549#Comment_81897549

No worries. Investment is all about the long term.

Perhaps stuff your capital investment initially into an appropriate index tracking fund (or funds) either within or without T212, whilst you play around risk free for a couple of decades on T212.
If you then think you've come up with a market beating investment strategy, then consider using the 'Real Money' area for more active investing.

Less than 10% of active investors are usually able to beat the market over a 20 year period, and most have less than a 50% chance at best even over the shorter term.

So you will probably get the best of both worlds. You can play at being an active investor and still walk away with what the market earns you :)

wmb194

https://forums.moneysavingexpert.com/discussion/6656684/trading-212

Given it has no account fees, zero commssion, just 0.15% FX fees, offers a wide range of shares and ETFs and pays a reasonable rate of interest on cash, yes. Just don't whatever you do dabble with CFDs. That's just gambling. Stick to its brockerage account ("Invest") and its S&S Isa ("Stocks ISA").

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81897710#Comment_81897710

T212 are advertising a lot on TV.

The adverts mix up trading / investing / cash ISa’s in a confusing, but maybe exciting to some, way .

Clearly the ISAs (cash & S&s ) are just a loss leader to get people on the platform and hope they are tempted into the much more risky parts of the platform.