Trading 212
{{Short description|European fintech broker}}
{{Infobox company
| name = Trading 212 Ltd.
| type = Private
| industry = Financial services
| predecessor = Avus Capital Group
| founded = {{Start date and age |2004 }} in Sofia, Bulgaria
| founders = Ivan Ashminov and Borislav Nedialkov
| hq_location_city = London
| hq_location_country = United Kingdom
| num_locations = 6 offices (2025)
| area_served = Worldwide
| products = Forex, stocks, contract for difference
| services = Stockbroker, Electronic trading platform
| aum = 25 billion £
| num_employees = 1,100
| num_employees_year = 2025
| website = {{URL |https://www.trading212.com/ }}
}}
Trading 212 is a British-Bulgarian 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). The company also provides debit cards and other banking services, as well as a financial news website.{{Cite web |date=2025-01-22 |title=Trading 212 Rolls Out New Debit Card, Offering 0.5% Cashback Reinvestment|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212-rolls-out-new-debit-card-offering-0-5-cashback-reinvestment/ |access-date=2025-03-18}}{{Cite web |title=Trading 212 2025 Company Profile: Valuation, Funding & Investors|url=https://pitchbook.com/profiles/company/224875-72#overview |access-date=2025-03-18 |website=pitchbook.com}}
Trading 212 serves clients worldwide, with operations across Europe, the Middle East, Africa, Latin America, and the Asia-Pacific region.{{Cite web |title=Trading 212 Company Overview, Contact Details & Competitors|url=https://leadiq.com/c/trading-212/5a1d98a02300005200874868 |access-date=2025-03-22 |website=leadiq.com}}{{Cite web |last=Segal |first=Gerald |date=2024-10-08 |title=Trading 212 Group profits drop 35% in 2023, launches Australia branch |url=https://fxnewsgroup.com/forex-news/retail-forex/trading-212-group-profits-drop-35-in-2023-launches-australia-branch/ |access-date=2025-03-18 |website=FX News Group}} As of 2025 the company reports having over 2.5 million registered users.{{Cite web |date=2025-02-05 |title=Trading 212 review: read this before you start |url=https://curvo.eu/article/trading-212-review |website=Curvo}}
History
Trading 212 was founded in Bulgaria in 2004 under the name Avus Capital.{{Cite web |date=2023-02-03 |title=Trading 212 Parts Ways With Co-founder Borislav Nedialkov|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212-parts-ways-with-co-founder-borislav-nedialkov/ |access-date=2025-03-18}} Initially, the company specialized in forex trading and developed proprietary trading software.{{Cite web |date=2014-10-10 |title=Exclusive: Bulgarian FX Broker Trading 212 Aka Avus Capital Lands UK Authorization {{!}} Finance Magnates |url=https://www.financemagnates.com/forex/brokers/bulgarian-fx-broker-trading-212-aka-avus-capital-lands-uk-authorisation/ |access-date=2025-03-18 |website=financemagnates.com}}
The company later expanded its product offerings and geographic reach, establishing a presence in several regulatory jurisdictions. An establishment of operations in the United Kingdom led to the relocation of its headquarters to London.{{Cite web |date=2025-01-27 |title=Is Trading 212 Safe? A Detailed Review of Security & Risks |url=https://www.theinvestorscentre.co.uk/reviews/trading-212-review/is-trading-212-safe/ |access-date=2025-03-18 |website=theinvestorscentre.co.uk}} In February 2021, Trading 212 was reported to be the most downloaded mobile application in the United Kingdom.{{Cite news |title=Why the GameStop Frenzy Is Mostly a Made in U.S.A. Drama |url=https://www.bloomberg.com/news/articles/2021-02-02/why-the-gamestop-frenzy-is-mostly-a-made-in-u-s-a-drama-for-now |archive-url=http://web.archive.org/web/20210203181450/https://www.bloomberg.com/news/articles/2021-02-02/why-the-gamestop-frenzy-is-mostly-a-made-in-u-s-a-drama-for-now |archive-date=2021-02-03 |access-date=2025-03-22 |work=Bloomberg.com}}
In 2023, following Brexit, Trading 212 announced plans to reorganize its client accounts. This reorganization 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.
In 2024, the company introduced a debit card and acquired FXFlat Bank GmbH, a multi-asset broker based in Germany and regulated by BaFin.{{Cite web |date=2024-08-15 |title=Trading 212 Expands With Acquisition Of Germany's FXFlat Bank|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212-expands-with-acquisition-of-germanys-fxflat-bank/ |access-date=2025-03-18}}
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.{{Cite web |date=2017-06-26 |title=Trading 212 Hits The Headlines With No-commission Physical Equities - But Who Is Booking The Trades? We Investigate|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212-hits-headlines-no-commission-physical-equities-booking-trades-investigate/ |access-date=2025-03-18}} 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 collateralized stock lending program.
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.{{Cite web |date=2023-10-11 |title=Trading 212 Profit Halves Amid Revenue Slump|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212-profit-halves-as-revenue-drops-31/ |access-date=2025-03-18}}
Regulations
Trading 212 is regulated in multiple jurisdictions. It is authorized by the United Kingdom's Financial Conduct Authority (FCA),{{Cite web |title=NewRegister |url=https://register.fca.org.uk/s/firm?id=001b000000NMi1QAAT |access-date=2025-03-18 |website=register.fca.org.uk}} the Cyprus Securities and Exchange Commission (CySEC),{{Cite web |date=2024-06-18 |title=Trading 212's Crypto Business Gets CySEC License|publisher=FinanceFeeds |url=https://financefeeds.com/trading-212s-crypto-business-gets-cysec-license/ |access-date=2025-03-18}} and the Australian Securities and Investments Commission (ASIC).