Company:Trading212

From HandWiki
Trading 212 Ltd.
TypePrivate
IndustryFinance
Headquarters3 Lachezar Stanchev Str., fl. 10, Litex Tower, 1756 Sofia, Bulgaria [1]
Key people
Ivan Ashminov (Co-founder) Borislav Nedialkov (Co-founder)
ServicesStockbroker
CFD Trading
Stocks and shares ISA
Number of employees
160[2]
ParentAvus Capital UK Ltd [3]
Websitewww.trading212.com

Trading 212 Ltd. is a financial services company headquartered in Sofia, Bulgaria. The company offers a mobile app in which people can invest in stocks, ETFs, and CFDs. Trading212 operates a website and mobile apps for iOS and Android.[4]

Trading212 is registered in Bulgaria and regulated by the Financial Supervision Commission.[4] The UK branch, Trading212 UK, is regulated by the FCA.[5][6][7]

This company also operates in Australia, Thailand, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, Spain and most other countries. Trading212 does not operate in the United States or Canada.[8][9]

History

Trading212 was founded in 2006 by Ivan Ashminov and Borislav Nedialkov.[8] The company is now domiciled in London, although an entity still exists in Bulgaria.[10] In 2017, the company's profits before tax fell by 83% to just £1.3M, while net revenues were £43.7M. The company has considered selling stakes of the company to investors or going public.[11]

Products

ETF and Stock trading

Trading212 offers commission-free exchange-traded funds and stocks trading. This is the company's main selling point. It also does not charge customers on deposits and withdrawals. It does not generate revenue from commission-free trading, so the costs incurred are subsidised from spreads between buy and sell prices of assets. They also charge a 0.5% on currency conversion and when applicable, the user is charged stamp duty on shares and ETFs.[12]

CFD trading

Trading212 also offers customers the option to trade contract for differences. The company offers users leverage when trading CFDs. The ratio depends on the instrument. For example, there is a 1:30 ratio when trading with currency pairs consisting of two of the following: US Dollar, Canadian Dollar, Pound Sterling, Swiss Franc, Euro or Japanese Yen. The user can trade forex pairs, cryptocurrency, stock indices and commodities.[13]

However, the company charges users a spread when investing in CFDs. Some have likened this strategy in which the company incentivises new users by promising commission-free trading then charging spreads on CFDs as a bait-and-switch tactic.[10]

Individuals Savings Account

Trading212 also offers traders based in the UK the option to setup an ISA with them. Users can deposit a maximum of £20,000 every tax year and allows for tax-free trading.[12]

Demo accounts

Trading212 allows users to practise on a dummy account in which they are given pretend-currency to simulate trading.[14]

See also

  • Robinhood - A similar US-based app
  • Stock market
  • Leverage (finance)

References

  1. ↑ "Financial Supervision Commission - TRADING 212 Ltd". https://www.fsc.bg/en/supervised-entities/notifications/investment-firms-from-the-republic-of-bulgaria-which-intend-to-perform-services-and-activities-under-the-freedom-to-provide-services-including-by-establishing-a-branch-within-the-territory-of-the-host-state-including-through-a-tied-agent/trading-212-ltd/. Retrieved 2020-09-13. 
  2. ↑ "Subscribe to read | Financial Times". https://www.ft.com/content/23022ea4-bb62-11e8-8274-55b72926558f. Retrieved 2020-09-13. 
  3. ↑ "Trading 212: Fintech startup takes on brokers with first free UK share trading platform | The Independent". https://www.independent.co.uk/news/business/indyventure/trading-212-fintech-startup-app-brokers-first-free-uk-share-trading-platform-a7799511.html. Retrieved 2020-09-13. 
  4. ↑ 4.0 4.1 "Financial Supervision Commission - TRADING 212 Ltd". https://www.fsc.bg/en/supervised-entities/notifications/investment-firms-from-the-republic-of-bulgaria-which-intend-to-perform-services-and-activities-under-the-freedom-to-provide-services-including-by-establishing-a-branch-within-the-territory-of-the-host-state-including-through-a-tied-agent/trading-212-ltd/. 
  5. ↑ "NewRegister". https://register.fca.org.uk/s/firm?id=001b000000NMi1QAAT. 
  6. ↑ "About us" (in en-GB). http://www.trading212.com/en/Company-Overview. 
  7. ↑ "Safety and security" (in en-GB). http://www.trading212.com/en/Safety-and-Security. 
  8. ↑ 8.0 8.1 March 2020, Jitendra Soni 10. "Trading 212 review" (in en). https://www.techradar.com/reviews/trading-212. 
  9. ↑ "Trading 212 Review - "Must Read" for new traders. Fees, Demo And App Details". https://www.daytrading.com/trading212. 
  10. ↑ 10.0 10.1 "Error: no |title= specified when using {{Cite web}}". https://ftalphaville.ft.com/2020/02/13/1581604348000/When--commission-free-trading--isn-t--really--free/. 
  11. ↑ "Subscribe to read | Financial Times". https://www.ft.com/content/23022ea4-bb62-11e8-8274-55b72926558f. 
  12. ↑ 12.0 12.1 "Trading 212 Review - Money To The Masses". https://moneytothemasses.com/saving-for-your-future/investing/trading-212-review#:~:text=Trading%20212%20fees,-Trading%20212%27s%20big&text=Trading%20212%20makes%20money%20through,for%20share%20and%20ETF%20purchases.. 
  13. ↑ "Risk disclosure notice" (in en-GB). http://www.trading212.com/en/AVUSUK/risk-disclosure-notice. 
  14. ↑ "Is Trading 212 As Good As They Seem? Here's Our Expert Review" (in en-US). https://commodity.com/brokers/trading212/. 




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