212 Summary of questions after 2 weeks

🤝 Help
1

I have been using practice mode and have some questions. I am asking them fresh as the various current posts seem to have conflicting answers including the T&Cs being out of date in some cases.

  1. I want to learn day trading, swing and long term. Which account do i use for each or does it not matter?

  2. The standard mode in UK - CFD - happy with how to use it technically.
    A. Are the prices the same as Invest/ISA but with different leverage?
    B. Can I day trade and are there limits to the number per day?
    C. If I can day trade then are there types of day trading I cant do?
    D. What is the leverage?

  3. The standard mode in UK - Invest/ISA -
    A. Why does it have different methods of buying and selling to CFD. Stop loss for example in CFD? A bit confusing unless that how it is on other platforms too?
    B. Why can I sell stock I don’t have to ‘short’ in CFD but not Invest/ISA?
    C. What is the leverage?

  4. What is the difference in pro mode and does it change the answers to any of my questions above?

2

Here is my attempt to answer:

  • Practice mode, CFD for day trading, swing and long term use the practice mode invest acc. That’s my thoughts. Remember with CFD there is over-night fee’s for holding open positions though.
  • a - Yes, just leveraged in CFD.
  • b - No limits, trading212 has verified that you can day trade now. Just don’t “scalp” too much on the CFD platform, ie: open & close a position in under 2 mins.
  • c - Just don’t spam the system with 1000 + trades per minute, that’s not fair use.
  • d - Depends and changes per stock/commodity - normally 1:20
  • a - Normally meant for long term investing. CFD is their platform where they earn their money, so that has more features but more will be available soon in ISA/Invest.
  • b - ISA/Invest there is no leverage, hence no shorting. It’s mainly for people that wish to buy and hold. If you want to short, just use the CFD platform for those trades.
  • c - No leverage on Invest/ISA, you can only buy with the money you deposit. 1:1
  • Pro mode is for professionals. 1:500 leveraged ratio, vs 1:20. Do NOT trade or apply for this unless you have enough experience and money to do so.

Hope this helps.

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3

adm,
Perfect you answered with exactly what I needed. Its all just about what I thought so I am not quite as clueless as I had feared :smiley:
KR
doug

1 Like
4

No worries :slight_smile:
We’re all learning here :smiley:

Take care.

5

on day trading, it is a US rule which we as UK/EU clients don’t need to worry about since we aren’t trading in the US.

for 3a - its basically just a separation of the controls to what new investors find more comfortable and understandable. with each type of order split from the others you can be sure you are setting the correct values for what you intend.

stop = stop loss, same behaviour but just appears under the shortened name.

6

Thanks Dao, this answer makes more sense in the context of CFD for day trading and Invest/ISA for swing or long term.

7

@dougiec1978

  1. Practice

  2. A - Yes
    B - Invest -> as much as you’d like, CFD -> constant scalping is forbidden. Scalping is opening & closing positions within a very short timeframe - like 1-2 minutes.
    C - Scalping on CFD, everything else is fine.
    D - Borrowed capital (of any kind). Example: taking loan from a bank to make an investment.

  3. A - The user interface is different because the trading behavior & goals are very different between CFDs & EQ clients (most of the time).
    B - Shorting may come soon to EQ as well.
    C - No leverage on Invest.

  4. The only difference between pro & retail CFD is that if you’re a pro, you have access to way more leverage.

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