Amendments to Legal Documents - March 2021

Has anyone had the time to go through the detail and compare old and new? Anyone care to explain the highlevel changes? Other than the obvious increase in currency exchange charges;

With the following written notice, we would like to bring to your attention that Trading 212 UK Ltd. will apply some amendments to its legal documents and Trading Terms.

Along with the updated documents, you can find an overview of the upcoming changes below:

  • The new version of the Order Execution Policy can be found here and an overview of the amendments can be found here. *
  • The new version of the Share Dealing Terms of Business can be found here and an overview of the amendments can be found here. *
  • The new version of the Trading Terms amends the Currency conversion charge from 0% to 0.15%. The change will be applicable to all buy/sell orders and dividends received, but only for shares denominated in a currency different from your account currency. ***

I can get that T212 wants to charge on the currency conversion but at least we should be given the option to change the currency on our accounts. For example, in my case most of my picks (>95%) are traded in USD. Had I knew that before I would have opened an account in USD and not EUR.
I hope we will be given the option to change account currency.

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Thanks for the overview.
Can´t say I am really happy about the currency conversion fee.
That being said, my bank keeps randomly charging me with costs without doing anything really, at least this is predictable.
And if it allows T212 to update the infrastructure, it is worth it.

Hi T212,

Can you please provide us with a summary of the changes.

  • TRADING 212 UK LIMITED Client Agreement
  • Order Execution Policy

With all due respect, you should have simply just told us what the changes are to the last one we read. I don’t have time to waste.

Thanks for understanding :slight_smile:

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New:

10.15. Market conditions can cause temporary delays to the execution of Orders. It is the client’s
obligation to make sure that any earlier pending Order(s) is/are cancelled before placing a new Order in the same Investment. We do not accept any liability for any actual or potential loss you may suffer if
this occurs.

10.18. You accept that some small and micro-cap shares trade on highly illiquid markets, or by way of an auction or other non-standard bidding process, which may cause delays in executing Orders in such financial instruments. In these circumstances you agree that Trading 212 will process your Order as soon as is reasonably possible. Trading 212 will not be liable for any financial losses, perceived or actual, that you may suffer as a result of these delays.

10.19 Trading 212 may temporarily, at its sole reasonable discretion, introduce or amend the minimum or maximum size of any Order in any Investment. We will exercise our best efforts to provide you with the possibility to close the entire investment, which was affected and to notify you of any such restrictions beforehand.

13.13. Trading 212 will not facilitate the transfer of Investments to another firm. The Investments held in your account will need to be liquidated and cash can be transferred to another firm. Similarly, any Investments held with another firm cannot be transferred to your account with Trading 212 but cash can be transferred instead. Investments cannot be put into certificate form and mailed.

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It literally does this on the email that’s going round.

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You should have received an email with all the information and links.

I am currently holding stock that I purchased when no currency charge was in place. Why do I now have to pay if I sell that said stock? Payment for exchange of currency should only come into force for purchases made after the introduction date.

I would also like to see the option to hold funds in different currencies, if I have to pay for conversion then it is only right that I should be able to decide when my funds are converted. I have often sold shares thinking I have made a profit, only to see a loss (also visa-versa). By allowing us to keep funds and not being forced to exchange funds at the point of purchase or sale, we will be able to operate more efficiently and thus attract more customers to 212.

Also, an account with funds in a different currency would mean we would not have to pay for currency conversion with every buy and sell, just pay the once to convert the amount into that account - this would be fair and right.

Lets just hope 212 consider this as it would make them look like they are providing a truly great service, like they already have been. I never like change when things are going well, but if changes are necessary, at least apply them fairly.

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Yes you are right, per my original post, didnt have time to read it, but it does show before and after so will read this evening

He wasn’t replying to you specifically.

Thanks for the swift reply.
I don’t see said email, but will give it more time.

Here’s the links:
Order Execution Policy
Share Dealing Terms
Stock and Share ISA terms
Client Agreement

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Many thanks.

So according to 28.9 of the Share Dealing Terms accounts cannot be inherited once the owner passes away. They will automatically close all positions.

That contradicts what is said here:

I do not understand the path T212 is taking.

Before I opened my account I wrote to support asking this very same thing and they assured me that ownership of the account would be transferred to my kids or whoever I left it on my will. In their own words “the investments will not be liquidated”.

This is big no for me as I want to pass my wealth to my children (pretty obvious eh) without liquidating and having to pay huge taxes.

To sum up. They are reversing many of the decisions they took.

Obviously I have stopped using them as one of my brokers.

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Or is it just the usual privacy adjustments not worth going into…

I see that they have removed references to MiFid 2 regulations. We are starting to see some Brexit related changes.

@Beavis

With respect to your query, please note that there are no discrepancies between the text you have provided, but we think we understand your confusion - we should differentiate between the general inheritance of assets (and obligations) and the inheritance of a trading account. Clause 28.9 of the Share Dealing Terms takes account for the intuitu personae nature of the agreement, meaning that the agreement is made strictly between a specific person and the investment firm. Subsequently, if this person passes away the agreement is automatically terminated. However, pursuant to the applicable law and regulations all assets and obligations of an individual (e.g. shares) are subject to the inheritance estate of the deceased person and belong to his heirs.

David, without getting into latin words “Immediately in the event…we shall close any open position of the Client irrespective of their current result…”. In English close a position means selling a stock. When you automatically sell you trigger a taxable event for the successors to deal with which is not very good. I want them to inherit my assets (i.e. stocks bought in the course of many years) not the money equivalent at the time of my death.

I understand your point about the account vs what’s in the account. But the clause says what it says.

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A post was merged into an existing topic: Should Trading212 now change their Front page?

I totally agree on this. Are there plans to make this available?

My guess is this is because share transfers are not supported anyway. Probably don’t have any other option.