How to short on trading 212? With no commissions for trading shares and ETFs, tight spreads and a hefty choice of assets, it’s not hard to see why Trading 212 has seen rapid growth since it first hit the scene. The fact that this broker doesn’t offer short-selling on equities may turn off some serious equity traders and is probably the major drawback to the otherwise impressive offering.
Can I short with Trading 212?
Traders can open an account with Trading 212 and invest in shares and ETFs as well as CFDs. There are three different accounts available: The CFD Account, Invest Account and the ISA Account which allows UK-based traders to take advantage of the tax breaks on capital gains and dividends (up to PS20,000).
The platform is well designed and features all the basic functionality needed by traders. It’s also mobile-friendly and there are apps for iOS and Android devices. It’s worth noting that you can only trade with the native app and cannot connect external platforms like cTrader or MetaTrader.
Another positive is that Trading 212 keeps clients’ funds in segregated bank accounts and it’s part of the Financial Services Compensation Scheme provisions in case the firm encounters financial difficulties. However, the educational resources could be improved, there’s a simple economic calendar but no news feed.
The platform offers a good selection of order types and you can choose between market or limit orders. You can also set a stop loss and a take profit limit. Another nice feature is the ability to invest in fractional shares which can be handy for those on a budget. It’s worth noting that the company doesn’t offer social investing options like eToro and algorithmic trading isn’t supported either.