Trading 212

Trading 212 Group Limited.[1]
Company typePrivately held company
IndustryFinancial services
PredecessorAvus Capital Group
Founded2004 (2004) in Sofia, Bulgaria
FoundersIvan Ashminov and Borislav Nedialkov
Headquarters
London
,
United Kingdom
Number of locations
6 offices (2025)
Area served
Worldwide
Products
ServicesStockbroker, Electronic trading platform
AUM25 billion £
Number of employees
1,100 (2025)
Websitewww.trading212.com

Trading 212 is a British financial services company headquartered in London, United Kingdom. It operates an electronic trading platform that enables trading in stocks, exchange-traded funds (ETFs) and contracts for difference (CFDs).[2] The company also provides debit cards and other banking services alongside a financial news website.[2][3]

Trading 212 serves clients worldwide, with operations across Europe, the Middle East, Africa, Latin America, and the Asia-Pacific region.[4][5] As of 2025, the company reports having approximately 4.5 million registered users.[6]

History

Trading 212 was founded in 2004 under the name Avus Capital.[7] Initially, the company specialised in forex trading and developed proprietary trading software.[8]

The company later expanded its product offerings and geographic reach, establishing a presence in several regulatory jurisdictions. It relocated its headquarters from Bulgaria to London after establishing its operations in the United Kingdom.[9] In February 2021, Trading 212 was reported to be the most downloaded mobile application in the United Kingdom.[10]

In 2023, following Brexit, Trading 212 announced plans to reorganise its client accounts. This reorganisation involved transferring certain EU clients from its UK entity to a newly established Cyprus entity, while the Bulgarian entity also planned transfers to either the Cyprus or UK entity.[7]

In 2024, the company introduced a debit card.[3][11]

A Cash ISA is described as a tax-free savings option that can be accessed when needed, potentially making it suitable for emergencies or short-term goals. The Independent’s money writer, Marc Shoffman, notes that returns on Cash ISAs are typically lower than those of stocks and shares ISAs but may be a reasonable choice for individuals seeking to minimise risk.[12]

Business model

Trading 212 operates a commission‐free model for its stock trading services, meaning that clients are not charged commissions or custody fees for holding assets on the platform.[13] The company derives revenue primarily through currency conversion fees when transactions are conducted in a currency different from the account's base currency, and through participation in a collateralised stock lending programme.[5]

Regarding its contracts for difference (CFD) products, Trading 212 initially employed a spread‐based revenue model. Between January 2021 and May 2021, the company generated revenue from the difference between the prices offered to clients and the hedging prices established via a back-to-back hedging arrangement with an affiliated entity. In May 2021, Trading 212 discontinued this internal hedging arrangement and subsequently adopted a risk management strategy whereby exposures were hedged externally with third parties.[14]

The platform offers commission-free trading in shares and Exchange Traded Funds (ETFs). Since its launch, over three million accounts have reportedly been opened, with total client holdings of approximately £3.5 billion. The platform has no trading or platform fees and allows minimum investments of £1.[15]

Trading 212 provides three main account types:

  • Invest: A general trading account enabling the purchase of more than 12,000 shares and ETFs. Users can hold multiple currencies in this account, including euros and US dollars.[15]
  • Stocks & Shares ISA: A tax-efficient account that allows UK residents to invest up to the annual ISA limit (currently £20,000), with no tax payable on returns. Unlike the Invest account, this ISA accepts only British pounds.[15]
  • Cash ISA: A savings account paying interest on uninvested cash. Withdrawals can be made at any time, and any removed funds can be replaced within the same tax year without affecting the ISA allowance.[15][16]

Users can purchase portions of shares, broadening access to high-priced stocks. Investors may select ready-made portfolios or pies based on different risk levels. They can also automate contributions at chosen intervals. These tools allow users to automatically sell assets if values drop below or rise above preset thresholds. An in-app Lear section introduces essential trading concepts. Basic company data, such as balance sheets and income statements, is also available.[15]

Uninvested cash within the platform earns an Annual Equivalent Rate (AER) that is variable. At present, this rate is 4.90% and applies to balances in both the Invest account and the ISA accounts.[15]

Regulations

Trading 212 is regulated in multiple jurisdictions. It is authorised by the United Kingdom's Financial Conduct Authority (FCA),[17] the Cyprus Securities and Exchange Commission (CySEC),[11][18] and the Australian Securities and Investments Commission (ASIC).[5]

References

  1. ^ "TRADING 212 GROUP LIMITED". Companies House. Retrieved 2025-07-09.
  2. ^ a b "Trading 212 2025 Company Profile: Valuation, Funding & Investors". pitchbook.com. Retrieved 2025-03-18.
  3. ^ a b "Trading 212 Rolls Out New Debit Card, Offering 0.5% Cashback Reinvestment". FinanceFeeds. 2025-01-22. Retrieved 2025-03-18.
  4. ^ "Trading 212 Company Overview, Contact Details & Competitors". leadiq.com. Retrieved 2025-03-22.
  5. ^ a b c Segal, Gerald (2024-10-08). "Trading 212 Group profits drop 35% in 2023, launches Australia branch". FX News Group. Retrieved 2025-03-18.
  6. ^ "Trading 212 Surpasses £25 Billion in Client Assets and 4.5 Million Clients, Cementing Position as the UK's Fastest-Growing Saving and Investment Platform". Yahoo Finance. 2025-05-21. Retrieved 2025-06-18.
  7. ^ a b "Trading 212 Parts Ways With Co-founder Borislav Nedialkov". FinanceFeeds. 2023-02-03. Retrieved 2025-03-18.
  8. ^ "Exclusive: Bulgarian FX Broker Trading 212 Aka Avus Capital Lands UK Authorization | Finance Magnates". financemagnates.com. 2014-10-10. Retrieved 2025-03-18.
  9. ^ "Is Trading 212 Safe? A Detailed Review of Security & Risks". theinvestorscentre.co.uk. 2025-01-27. Retrieved 2025-03-18.
  10. ^ "Why the GameStop Frenzy Is Mostly a Made in U.S.A. Drama". Bloomberg.com. Archived from the original on 2021-02-03. Retrieved 2025-03-22.
  11. ^ a b "Trading 212 Expands With Acquisition Of Germany's FXFlat Bank". FinanceFeeds. 2024-08-15. Retrieved 2025-03-18.
  12. ^ Shoffman, Marc (2025-04-15). "Trading 212 Cash ISA: Earn 5.07% tax-free interest today". The Independent. Retrieved 2025-06-18.
  13. ^ "Trading 212 Hits The Headlines With No-commission Physical Equities - But Who Is Booking The Trades? We Investigate". FinanceFeeds. 2017-06-26. Retrieved 2025-03-18.
  14. ^ "Trading 212 Profit Halves Amid Revenue Slump". FinanceFeeds. 2023-10-11. Retrieved 2025-03-18.
  15. ^ a b c d e f Garner, Bethany (2024-12-02). "Trading 212 Review: Pros & Cons". Forbes. Retrieved 2025-07-01.
  16. ^ "Individual Savings Accounts (ISAs)". gov.uk. Retrieved 2025-07-01.
  17. ^ "NewRegister". register.fca.org.uk. Retrieved 2025-03-18.
  18. ^ "Trading 212's Crypto Business Gets CySEC License". FinanceFeeds. 2024-06-18. Retrieved 2025-03-18.
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