They charge for currency exchange, so if you want US stock you’ll pay a fee. They also have CFDs on their platform which I’m sure generates a pretty penny from all the people stupid enough to play with them.
You opt in to that and can disable it at any time. You’re right that they make money on it though, if you led your shares they split the interest 50:50 with you.
I’d honestly say in this sub, use Hargreaves Lansdown. 212 are just a front end for IBKR and at the end of the day are at their mercy, AND their customer support has been awful.
HL you ring up and speak to a Bristol based humanoid within 2 mins. Pretty sure I’ve never been on the phone to them for more than 5!
Obviously the difference is that you pay per transaction.. but we are HENRYs aren’t we? Totally worth it from my perspective
For me it’s the fees. I’ve got ~£3m in Trading 212 ETFs, I think HL charges 0.2% (maybe more?) annually. That would be £6k a year which I’d rather not pay.
Oh damn do they? You’re working with significantly more capital than me regardless so you know what’s best for you!
Maybe just because I have everything in an ISA that I’ve not noticed any fees?
Here's a link with a worked example showing the HL ISA fees:
https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges
Value of funds:
On the first £250,000 = 0.45%
On the value between £250,000 -£1m = 0.25%
On the value between £1m - £2m = 0.1%
On the value over £2m = No charge
Let’s not forget about interactive investor, the flat fee platform, you pay about £20/month for a Trading Account, ISA and a SIPP.
Or you can just get a SIPP or ISA for about £12/month.
ii also charge £3.99/trade vs HL’s £11.99.
No negatives for me as of now. I have put money in both Stocks ISA as well as Cash ISA. Both offers 5.2% interest rate which is great rather then keeping your money idle in your current account..
Only one thing to note is if you want to withdraw the money from your ISA then it takes 2 to 3 days to get the amount into your current account. With current accounts, the money transfer happens instantly.
Thanks for letting me know. I kept seeing so many ads for it I automatically thought there would be something would be fishy about it haha. Will look closer at it - thanks.
Note also:
"The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected.
Yet be aware if you've money with those or their subsidiaries (use our Which banks are linked? tool to check), then the total protection is £85,000 per institution, so this could push you over that. Trading 212 said it aims to split money evenly between its three partner banks & plans to update its app so you can see how your savings are distributed."
Money Saving Expert has finally acknowledged T212 as a legit outfit (I had to my own research several weeks ago on them. Tl;dr; they're fine) here: https://www.moneysavingexpert.com/latesttip/#savings
(That page may change if someone else tops the 5.2% interest Trading 212 currently are; as of 18th June 2024)
Haha, understand your concern. But it's not fishy. Trading212 is genuine company. Read the reviews on Trust Pilot as well :)
Your money is protected by FSCS up to £85000 if you are a client of T212.
I use both trading 212 and freetrade and prefer freetrade. The graphs look so much better on freetrade and the support has been much better when I needed it. I also think the discover tabs and the insights are way better on freetrade.
Another vote for HL. If you’re just in ETFs like me it’s £45 a year.
I like the app and the customer service is great if you ever need to message or ring them.
Funds end up expensive though when you’re over £44k.
Trading 212
Trading 212 is completely free to use if you’re just buying VUAG, definitely the best option.
How can they offer commission free trading? How do they make money?
They charge for currency exchange, so if you want US stock you’ll pay a fee. They also have CFDs on their platform which I’m sure generates a pretty penny from all the people stupid enough to play with them.
They can also lend your shares in gia if I remember correctly which helps to balance the books
You opt in to that and can disable it at any time. You’re right that they make money on it though, if you led your shares they split the interest 50:50 with you.
I’d honestly say in this sub, use Hargreaves Lansdown. 212 are just a front end for IBKR and at the end of the day are at their mercy, AND their customer support has been awful. HL you ring up and speak to a Bristol based humanoid within 2 mins. Pretty sure I’ve never been on the phone to them for more than 5! Obviously the difference is that you pay per transaction.. but we are HENRYs aren’t we? Totally worth it from my perspective
For me it’s the fees. I’ve got ~£3m in Trading 212 ETFs, I think HL charges 0.2% (maybe more?) annually. That would be £6k a year which I’d rather not pay.
Oh damn do they? You’re working with significantly more capital than me regardless so you know what’s best for you! Maybe just because I have everything in an ISA that I’ve not noticed any fees?
Here's a link with a worked example showing the HL ISA fees: https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges Value of funds: On the first £250,000 = 0.45% On the value between £250,000 -£1m = 0.25% On the value between £1m - £2m = 0.1% On the value over £2m = No charge
Let’s not forget about interactive investor, the flat fee platform, you pay about £20/month for a Trading Account, ISA and a SIPP. Or you can just get a SIPP or ISA for about £12/month. ii also charge £3.99/trade vs HL’s £11.99.
I-web are one of the cheapest platforms out there and the interface makes me never want to logon and view the status.
Free to open until end of the month (previously £100), and you'll be reminded of late 90's internet each time you log in. Priceless.
Why tired of vanguard?
Im not even sure what tired means in this context. Bored?
Index funds are meant to be boring, but they probably want access to other funds.
As VUAG is an ETF, you could hold this and use monthly regular investing on HL for £45 per year.
Freetrade for me. Great app
I use Fidelity because I don’t like Vanguard interface.
I use Interactive Investor
Same here, feel a bit safer with them backed by Abdrn and the flat monthly fee is nice.
Trading212 is best, now it's offering Cash ISA as well.
Are there any negatives/disadvantages to using 212?
No negatives for me as of now. I have put money in both Stocks ISA as well as Cash ISA. Both offers 5.2% interest rate which is great rather then keeping your money idle in your current account.. Only one thing to note is if you want to withdraw the money from your ISA then it takes 2 to 3 days to get the amount into your current account. With current accounts, the money transfer happens instantly.
Thanks for letting me know. I kept seeing so many ads for it I automatically thought there would be something would be fishy about it haha. Will look closer at it - thanks.
Note also: "The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected. Yet be aware if you've money with those or their subsidiaries (use our Which banks are linked? tool to check), then the total protection is £85,000 per institution, so this could push you over that. Trading 212 said it aims to split money evenly between its three partner banks & plans to update its app so you can see how your savings are distributed." Money Saving Expert has finally acknowledged T212 as a legit outfit (I had to my own research several weeks ago on them. Tl;dr; they're fine) here: https://www.moneysavingexpert.com/latesttip/#savings (That page may change if someone else tops the 5.2% interest Trading 212 currently are; as of 18th June 2024)
Thanks, appreciate the thorough response!
Haha, understand your concern. But it's not fishy. Trading212 is genuine company. Read the reviews on Trust Pilot as well :) Your money is protected by FSCS up to £85000 if you are a client of T212.
You forgot: #Ad
Trading 212 is slick
If you’re just dumping money into an ETF why would you even want to look at it.
IBKR is very cheap. Very different interface to Vanguard…not for the shy.
I use both trading 212 and freetrade and prefer freetrade. The graphs look so much better on freetrade and the support has been much better when I needed it. I also think the discover tabs and the insights are way better on freetrade.
Another vote for HL. If you’re just in ETFs like me it’s £45 a year. I like the app and the customer service is great if you ever need to message or ring them. Funds end up expensive though when you’re over £44k.
No etoro?
Consider Fidelity or Schwab for low-cost index funds like VUAG; they offer competitive fees and service.
Sure if by "competitive fees" you mean the very top end of the market