Brokers are jokers with Trading 212 zero commission service
“The commissions charged by UK brokers are nothing short of a disgrace”
Don’t go for broke or a broker – Trading 212 has unveiled the UK’s first zero commission share trading platform.
The firm says it allows investors to make ten trades per month and up to £10,000 equity per trade commission free, which it estimates will cover the needs of approximately 90% of its customers.
To make money, it charges “larger and more active” traders a commission of £1.95 + 0.05% per trade. Trading 212 states that its users will have full regulatory protection as Avus Capital UK, the parent company, is authorised and regulated by the Financial Conduct Authority.
Trading 212 is aiming to take a big bite out of the major UK online share dealing platforms with its concept. According to the company, the actual cost to a broker of executing a retail trade is under £1, meaning that investors using traditional brokers are on average paying a multiple of 1,000%.
Ivan Ashminov, co-founder of Trading 212, says: “The commissions charged by UK brokers are nothing short of a disgrace. Brokers are charging multiples of the actual cost of executing a trade, not margins. We want to completely shake up retail share trading by democratising the marketplace so smaller investors are no longer penalised for putting their money to work.”
Trading 212 will provide execution and access initially to over 1,500 commonly traded UK, US and German stocks and “over time will expand” into other unspecified markets.
It is available by downloading the Trading 212 app on both Android and iOS devices. The app also offers access to features such as technical analysis and a number of social media features – i.e. video tutorials and a live chat room.
