How to Compare Trading 212 to Other Platforms

How to Compare Trading 212 to Other Platforms

While Trading 212 has a lot for it, it’s worth exploring alternative platforms that might align with your investment goals. Here are some tips on comparing trading apps, including features, fees, and regulation.

How Does Trading 212 Make Money?

Can you short on trading 212 most of its revenue through CFDs (contracts for difference) and interest rates. These are risky derivatives that allow you to speculate on price movements of underlying assets without actually owning them.

Unlike many other brokers, Trading 212 doesn’t charge a fee for buying and selling shares and ETFs. However, they do still earn a profit from your trades through spreads, which are essentially the cost of using their platform.

In addition to the fees listed above, Trading 212 also charges other internal and external costs like stamp duty in some countries. Furthermore, their selection of assets is limited and doesn’t include some popular markets such as Asia or Australia.

It also doesn’t appear as if Trading 212 offers payment for order flow, which is a practice that sees brokers pay money to certain market makers in return for the right to execute orders on their platform. While this is not illegal, it can work to your disadvantage as brokers may prioritize payments over executing the best possible trade for you.

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