Trading212
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Just watched a couple of videos on youtube and before both I got adverts for this. Decided to come here first and check it out as it wasn't too clear what they where pushing apart from cutting out the Investment Fat Cats...Solar PV cost £5760 (15/03/13)
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Bazofts_Revenge wrote: »Decided to come here first and check it out as it wasn't too clear what they where pushing apart from cutting out the Investment Fat Cats...
Yon spread-betting bookie has a lean and hungry look. Let me have around me brokers who are fat. [Julius Caesar act I scene ii]
@Bugbyte: If it's a genuinely small amount of money - clearly less than $400 - then I would let him go for it and learn a valuable lesson about the stockmarkets. On the condition that he buys an actual share in the company, rather than gambling on some betting app, after having a free lecture on counterparty risk.
Having stalked your posting history, he has a Junior ISA, correct? Why not arrange for him to buy a share with that, keeping the rest sensibly diversified?0 -
Exchange traded equities means actual share dealing / stock (equity) trading. Meaning, you trade real stocks, own them, receive dividends, etc. There is no leverage.Sorry to bump an old thread. My son - bless him - wants to spend a small amount on a Tesla share to say he 'owns' Tesla. I have tried to put him off saying he is buying for the wrong reasons and a world tracker fund is a better option for lots of different reasons. I even tried to explain that Tesla does not have a P/E ratio because it hasn't turned a profit. What will put him off is the fact you can't buy less than one share, and Tesla is trading at $384! Putting all of this aside, He came up with Trading 212 as his platform as it does not charge to trade. I explained to him it trades FOREX and CFD's which are not shares, but are used to go long or short on stocks - not a world you should go into unless you know what they are doing. It also trades 'Exchange Traded Equities' I don't know what these are - are they Shares as we know them? Are they linked in some way to ETFs?
I have advised him if he wants a low cost broker to go with degiro as at least it has some history.0 -
I’ve been trading with Trading 212 for a short while now and yes you can own real shares through this platform. Look for the ‘EQ’ marker, which designates equities. There are also Exchange-traded Funds (ETF), which again you own. If you want to be more risky, then there are Contracts for Difference (CFD) and foreign exchange (FX); these two are normally traded on margin, which means you can gamble (and yes I do view these as a gamble) with more than you’ve deposited.
Going back to Equities though, you can buy and sell these through Trading 212, with zero charges (apart from the compulsory stamp duty), up to 10 trades per month. I used to trade with Hargreaves Lansdown, paying £12 per trade, so, to me, this is a very valid (and free) platform for a small, long-term investor.
ETFs are funds which in turn hold shares in multiple companies and are very good way of spreading risk. You can, for example, get an ETF that tracks the FTSE 100, which means that you are spreading your risk across all the companies in the FTSE100, for a small ongoing charge. If one company goes bust, you only lose a very small portion of your investment. A very good idea for a lot of people, but if you are not familiar with the terminology, I would recommend doing a bit of reading before putting in your hard-earned money.
PS, Tesla are under the ticker ‘TSLA’, currently trading at USD 362 per share
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You might get some free trades but they make money elsewhere:
Depositing funds:
Depending on the method of payment and the currency of your account, a fee between 0.7% and 3.5% is applied
From: https://www.trading212.com/en/Terms-and-Commissions
They are also primarily a Forex and options business; not sure they want buy and hold investors but I may be wrong.0 -
EdGasketTheSecond wrote: »You might get some free trades but they make money elsewhere:
Depositing funds:
Depending on the method of payment and the currency of your account, a fee between 0.7% and 3.5% is applied
They are also primarily a Forex and options business; not sure they want buy and hold investors but I may be wrong.
The transaction fees go to the payment provider, not the broker.
They don't offer binary options - only share dealing, Forex and CFDs, as already mentioned above.
Share dealing happens to be a new service for them, so I guess they are really keen on gaining customers investing in real stocks. Otherwise, why even bother to offer it, advertise it and provide a monthly amount of commission free deals.0 -
The transaction fees go to the payment provider, not the broker.
so you're saying that none of the 0.7%-3.5% fees for adding money to a trading212 account ends up going to trading212, even indirectly (e.g. via commissions).
1) how do you know? (do you work for them?)
2) why would that be a good thing? if they have no revenue, they will go out of business. or put up their charges significantly. neither of which would be good for their customers.
in any case, most investments platforms charge nothing to add cash to your account. and personally, i try to pay no more than 0.25% in dealing commission. which makes the total cost of adding cash and then investing it no more than 0.25% . so 0.7%-3.5% doesn't even look cheap to me.Malthusian wrote: »Yon spread-betting bookie has a lean and hungry look. Let me have around me brokers who are fat. [Julius Caesar act I scene ii]
JC would use HL
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grey_gym_sock wrote: »JC would use HL
As do I. A few years ago I was considering transferring my investments to the stockbroker equivalent of Cassius and am very glad I didn't.
For purchasing shares a 3.5% initial charge is obscene. (If that's what they charge - the charges page isn't clear on when it's 0.7% and when it's 3.5% and I'm not interested enough to go digging. Even 0.7% is too much to pay for a portfolio of any size.) As it's a spread-betting bookmaker, most of Trading212's customers will be expecting to lose all or most of their money so an initial charge is largely irrelevant to them. But if you want a portfolio of shares it's far too high.0 -
grey_gym_sock wrote: »so you're saying that none of the 0.7%-3.5% fees for adding money to a trading212 account ends up going to trading212, even indirectly (e.g. via commissions).
1) how do you know? (do you work for them?)
2) why would that be a good thing? if they have no revenue, they will go out of business. or put up their charges significantly. neither of which would be good for their customers.
in any case, most investments platforms charge nothing to add cash to your account. and personally, i try to pay no more than 0.25% in dealing commission. which makes the total cost of adding cash and then investing it no more than 0.25% . so 0.7%-3.5% doesn't even look cheap to me.
JC would use HL
1) No, it's a common sense thing. The payment is processed by a third party company which charges for the service. Every business offering online payments works like that.
2) Who says they don't make money off it? The commission free deals with stocks are limited to 10 per month and are up to a certain amount. They also provide forex and cfds, which are traded on margin and the broker takes the spread. 0 -
1) No, it's a common sense thing. The payment is processed by a third party company which charges for the service. Every business offering online payments works like that.
but are trading212 adding a markup to those third-party charges? (i don't know, but what's to stop them?)2) Who says they don't make money off it? The commission free deals with stocks are limited to 10 per month and are up to a certain amount. They also provide forex and cfds, which are traded on margin and the broker takes the spread.
the main point is: are they making money off the service of actual share trading? because if they only make money from other services, not that 1, why would they go on offering it.
it's true that, with most share brokers, the more active traders are probably subsidizing the infrequent traders a bit. however, charging no commission at all for the first 10 trades per month makes this cross-subsidy more extreme. so more reason to doubt it's sustainable. most very frequent traders are likely to be mugs (i.e. losing money), so how long will they keep going?
however, regardless of the answers to those questions, trading212 is simply too expensive a way to invest in shares, when you consider all the charges. i'm intrigued by your choice to keep coming back to this forum to defend them (and not to post on any other topic).0
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