Plus500 vs Trading 212 – Ultimate Comparison Guide
Updated February 21, 2024
- What Are Plus500 and Trading 212?
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- Plus500 vs Trading 212: The Services and Products
- Trading 212 vs Plus500: The Fee and Other Costs
- Trading 212 vs. Plus500: Security and Regulations
- Plus500 vs. Trading 212: Ease of Use
- Plus500 or Trading 212: Which One Has Better Customer Service?
- Trading 212 or Plus500: The Pros and Cons
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- Frequently Asked Questions
- Final Thoughts
Choosing the right platform can significantly influence your trading and investing journey in the ever-developing world of online trading.
This article aims to provide investors with a clear understanding of the key differences between Trading 212 and Plus500 and seeks to help investors make informed decisions.
Whether you're a novice trader seeking simplicity or an experienced investor looking for diverse trading options, this guide will assist you in selecting the platform that best aligns with your investment goals and preferences.
What Are Plus500 and Trading 212?
Plus500 and Trading 212 are both online trading platforms that allow users to trade various financial instruments, including:
- Stocks
- Forex
- Commodities
- CFDs
- EFTs
Plus500
Established in 2008, Plus500 was founded by six individuals, including Alon Gonen, Gal Haber, Elad Ben-Izhak, Shlomi Weizmann, Omer Elazari, and Shimon Sofer.
The platform is known for:
- Its user-friendly interface.
- Offering a wide range of trading instruments.
- Simple trading experience suitable for both beginner and experienced traders.
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. *CFD trading via Plus500’s demo account.
Trading 212
Trading 212 was founded in 2004 by Bulgarian entrepreneurs Ivan Ashminov, Boris Nedialkov, and Philip Stoev.
It provides a platform for trading various financial instruments, with a focus on stocks and ETFs.
Trading 212 is known for its commission-free trading model, low barriers to entry, and user-friendly mobile application, making it appealing to beginner investors.
When investing with Trading212, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Both platforms have gained popularity for their accessibility and ease of use, appealing to individuals looking to enter the world of online trading with relatively low barriers to entry.
Plus500 vs Trading 212: The Services and Products
Both Plus500 vs Trading 212 offer a range of financial instruments for trading. But there are some differences in the services and products they provide.
Plus500 allows users to trade CFDs (Contract for Difference) on various assets, including stocks, forex, commodities, cryptocurrencies, options, and indices.
There are also three trading platforms, including Plus500CFD, with more than 2800 CFD instruments; Plus500Invest, with more than 2700 shares (available in certain countries); and Plus500Futures, a futures platform available in the US only.
Users can speculate on the price movements of these assets without owning the underlying asset.
Plus500 does not offer ISAs or SIPPs, and while it offers trading in cryptocurrencies, it does not allow users to buy or sell actual cryptocurrencies.
Trading 212, on the other hand, allows users to trade a diverse range of assets, including:
- Stocks
- ETFs (Exchange-Traded Funds)
- CFDs
- Forex
Trading 212 also provides the option for users to open a Stocks and Shares ISA, which allows UK residents to invest in a tax-efficient manner.
In terms of research and educational tools, both platforms offer a variety of resources.
Plus500 provides various market analysis tools, including real-time charts, financial news, and an economic calendar.
It also offers a Plus500 demo account for users to practise trading and some guides and tutorials.
Trading 212 options include a wealth of educational materials such as video tutorials, articles, and a dedicated educational app called 'Investing for Beginners'.
Additionally, Trading 212 offers a virtual portfolio feature, allowing users to practise trading without risking real money.
When investing with Trading212, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Trading 212 vs Plus500: The Fee and Other Costs
When comparing the fees and costs of Trading 212 or Plus500, there are several distinctions to consider.
In addition, opening an account is typically free for both platforms, and there are no charges for closing an account.
However, there are differences in the fee structures for deposits, withdrawals, and making trades.
In terms of deposits, Trading 212 has a £1 minimum deposit and Plus500 UK fees are a bit steeper at $100.
Both Plus500 or Trading 212 typically do not charge fees for withdrawals, although the receiving bank may impose some charges.
Regarding making a trade, Plus500 charges a spread (the difference between the buy and sell prices) for each trade but does not charge commissions.
On the other hand, Trading 212 offers commission-free trading, but users may encounter minor fees related to currency conversion and market spread.
Additional Plus500 fees include a $10 per month inactivity fee after three months of no activity, up to 0.70% currency conversion fee, overnight funding and a guaranteed stop order.
Traders should thoroughly review the fee structures of each platform before deciding which one best suits their trading needs.
Trading 212 vs. Plus500: Security and Regulations
When it comes to security and regulations, both Trading 212 vs Plus500 adhere to regulatory standards, although there are some differences in their offerings and the protections they provide to investors.
Trading 212 is regulated by the Financial Conduct Authority (FCA) in the United Kingdom and the Bulgarian Financial Supervision Commission (FSC).
As a result, client funds are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS) in the UK.
Additionally, Trading 212 maintains investor protection by segregating client funds from the company's assets, ensuring that client funds remain secure even in the event of insolvency.
The platform is also subject to various regulatory requirements, promoting transparency and accountability.
Plus500 is regulated by multiple financial authorities, including the FCA, the Australian Securities and Investments Commission (ASIC) in Australia, and the Cyprus Securities and Exchange Commission (CySEC) in Cyprus.
The level of investor protection can vary depending on the jurisdiction.
Plus500 offers negative balance protection, ensuring that clients do not lose more than their total account balance. Additionally, client funds are kept in segregated bank accounts to protect them in the event of insolvency.
Both platforms have not experienced any major security breaches or regulatory issues.
However, it's essential for investors to stay updated on any changes in regulations and security practices implemented by these platforms.
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. *CFD trading via Plus500’s demo account.
Plus500 vs. Trading 212: Ease of Use
When it comes to ease of use and overall customer experience, both Plus500 vs Trading 212 offer user-friendly platforms, but there are some differences in their accessibility and interface.
Opening an account on both platforms is generally straightforward and can be completed online.
However, the time it takes to open an account can vary depending on the verification process, which typically involves identity verification and proof of address.
Both Plus500 vs. Trading 212 offer web-based platforms as well as mobile applications for trading on the go.
Plus500 supports a web platform and mobile apps compatible with both Android and iOS devices.
Trading 212 login also provides a web-based platform and mobile apps for Android and iOS users.
In terms of the user interface, Plus500 is known for its simple and intuitive design, making it easy for traders to navigate and execute trades.
It provides a clean and user-friendly layout for beginners and experienced traders.
On the other hand, Trading 212 offers a sleek and modern interface with a comprehensive set of tools, educational resources, and a customisable layout, catering to the needs of both novice and advanced users.
While both platforms are considered user-friendly, Trading 212's emphasis on educational resources, such as video tutorials and a dedicated educational app, may make it slightly more beginner-friendly, providing users with the necessary tools and knowledge to understand the trading basics.
Plus500 or Trading 212: Which One Has Better Customer Service?
Both Trading 212 vs Plus500 offer customer support through various channels, including email and online chat.
Plus500 shares customer support via email and an online chat feature accessible through their website and trading platform.
Their customer service is available 24/7, allowing users to seek assistance at any time.
Response times can vary depending on the nature of the query, but users generally receive prompt and helpful responses.
Trading 212 also offers customer support through email and an in-app chat feature available on their platform.
Their customer service is available during trading hours, typically from Monday to Friday, allowing users to reach out for assistance during these times.
Response times are generally quick, with many users reporting positive experiences with the promptness and helpfulness of the support team.
While both platforms have received positive feedback for their customer service, there have been occasional negative reviews related to response times, particularly during periods of high market activity or technical issues.
Some users have reported delays in receiving assistance or have expressed dissatisfaction with resolving their queries.
However, both platforms have demonstrated a commitment to addressing customer concerns and improving their support services over time.
Trading 212 or Plus500: The Pros and Cons
Trading 212
Pros
- Offers an ISA account for tax-efficient investing.
- No fees for buying and selling when using the account's currency.
- Provides a wide range of educational resources for traders.
- Offers more platform customisation options.
- Very accessible and low minimum deposit.
Cons
- Some users may find the fee structure complex to understand.
- Does not offer trading in cryptocurrencies, which may be a limitation for some investors.
- Does not have access to MT4.
- Does not offer copy trading.
When investing with Trading212, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Pros
- Offers a demo account for users to practise trading without risking real money.
- Does not charge commissions or transaction fees, making it cost-effective for traders.
- Offers guaranteed stop-loss orders and negative balance protection, helping keep your money safe.
- Is a publicly listed company with a safe and reliable track record.
Cons
- Requires a relatively higher minimum deposit, which might be a barrier for some beginner traders.
- Imposes inactivity fees, which could impact users who are not consistently active in trading.
- Does not have copy trading, a tool some traders find useful.
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. *CFD trading via Plus500’s demo account.
To trade on Plus500, sign up for an account, complete the verification process, and deposit funds. Use the platform's search function to find your preferred asset, then click 'Buy' or 'Sell' to open a position. Set your preferred stop-loss and take-profit levels, and monitor the trade in the 'Positions' tab. Close the trade when you wish to realise your profits or cut your losses.
To withdraw funds from Trading 212, log in to your account and navigate to the 'Withdraw Funds' section. Select your preferred withdrawal method, enter the desired amount, and confirm the transaction. Await processing, which usually takes a few business days, and ensure that you've met any necessary requirements, such as reaching the minimum withdrawal threshold.
Trading 212 facilitates the buying and selling of various financial instruments, including stocks, ETFs, forex, commodities, and cryptocurrencies. Users can open an account, deposit funds, and start trading through the web-based platform or mobile app. They can execute trades, monitor their investments, access educational resources, and seek support from the customer service team.
Trading 212 is owned by Avus Capital UK Ltd, a company based in the United Kingdom. Avus Capital UK Ltd operates as the UK branch of Avus Capital Ltd, a financial services company with headquarters in Bulgaria. Trading 212 was established by Bulgarian entrepreneurs Ivan Ashminov, Boris Nedialkov, and Philip Stoev, who are also associated with Avus Capital.
To make money on Trading 212, familiarise yourself with the market, conduct thorough research, and develop a trading strategy. Use the platform's analysis tools, educational resources, and market insights to make informed investment decisions. Implement risk management techniques, such as setting stop-loss and take-profit levels, and stay updated on market trends to capitalise on profitable trading opportunities.
Plus500 generates revenue primarily through the spread, which is the difference between the buy and sell prices of tradable assets. Additionally, it may charge overnight funding fees for positions held overnight and inactivity fees for dormant accounts. Plus500 also earns from currency conversion fees and other ancillary services, contributing to its overall revenue stream.
To sell on Plus500, log in to your account and navigate to the trading platform. Choose the asset you wish to sell and click the 'Sell' button. Specify the trade size and set your preferred stop-loss and take-profit levels. Monitor the trade through the 'Positions' tab and close the position when you decide to realise your profits or cut your losses.
Final Thoughts
In summary, both Trading 212 and Plus500 offer accessible and user-friendly platforms for online trading, catering to the needs of various investors.
While Trading 212 stands out for its ISA accounts, educational resources, and regulatory compliance under the FCA, Plus500 excels with its demo account, user-friendly interface, and 24/7 customer support.
However, Plus500 may pose higher minimum deposit requirements and inactivity fees, whereas Trading 212's fee structure might be perceived as complex.
Investors should carefully consider their investment goals, preferences, and the specific features offered by each platform to make an informed decision that aligns with their trading needs and objectives.
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. *CFD trading via Plus500’s demo account.
When investing with Trading212, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
