Day Trading with 'Invest' Account?

Hi everyone!

This is my first post. I’m a complete newbie to this trading platform, and trading and investing in general.

My questions are:
Is it possible (and legal) to buy and sell multiple shares in different companies (and the same company) in one day using the Trading 212 ‘Invest’ Account as opposed to the CFD account?

As I am new, I have only been trading with around £10 each trade making a few pence each time. But I was wondering if this is allowed? And whether or not it is legal and conforms to UK regulations?

Are there any regulations a beginner should know about? Such as UK trading limits? How it differs to US companies? And how taxation works?

Thanks for your help!

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there are no day-trader pattern limits or fees to worry about with T212 so if this is how you wish to use your Invest account, you have free reign.

in regards to particular markets, just watch out for additional fee’s on the shares themselves. Additionally, it’s required for you to declare and pay taxes unless the money is in an ISA so you may have to pay quite a sum in taxes, but as I don’t trade or do this myself, I can’t say how its determined fully.

With the Invest account, since you don’t get any leverage, I can see it being really hard to make any meaningful profits in short periods of time. Also, with Covid-19 occurring right now, you may find more erratic market behaviour with no guarantee you can sell for more than you bought for at least the few weeks to come.

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Regarding tax,
If you open a stocks and shares ISA, which you can do here in Trading212, then you get a yearly £20,000 tax free allowance. So you can put in 20,000 into your ISA and whatever you make with that is tax free.

Outside an ISA you are subject to Capital Gains Tax, where you have a tax free gains allowance of £12,500 for 2020/2021.
After that it’s 10-20% depending your income level

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I do remember seeing somewhere in the terms and conditions something relating to additional fee’s I believe if you trade in and out of a position excessive amounts of time per day or possibly suspend an account (can’t remember).

Great if Trading212 could elaborate on this.

Don’t take my word for it as I skimmed over as I intend to buy’n’hold, but it did catch my eye.
Double check the terms and ask Trading212 to be safe.

Here are the trading terms
https://www.trading212.com/en/Trading-Conditions?accountType=cfd

Yes, indeed there is a condition regarding day trading. It defines Target Client who is entitled for commission free trading. It says that Target Client is the one who place no more than 100 orders a month with an aggregate amount of 100,000 GBP. Also, Target Client should not place buy and sell orders for the same instrument on the same day for 2 consecutive days.
Second part is kind of clear, but the one with 100 orders a month is confused.
Could Trading212 explain about this 100 orders a bit more? And how the “aggregate” amount of 100,000 GBP is calculated? Are buy and sell orders added together? How about canceled or replaced (modified limit orders), are they count within these 100 orders?
Kindly appreciate the explanation.

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@Dumitru_C That’s an outdated section & soon to be removed from the agreement. :slight_smile:

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Thank for reply David.
That’s great to hear.
Trading 212, you are on a very right path. Keep it up!!!

Why do you have so many outdated sections in the agreements? For example, there is also something about inactivity fee.
You are handling other people’s money, you know!

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@JanPM Agree, that’s why we’ll be making a lot of amendments.

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Hi David,

Badly needing some clarification. I tried to purchase shares today but I got a error message saying I can’t buy in a single purchase as its 95% of my wallet… How else was I meant to get 100 shares?

@KBB

Thanks for the insight xd

Any idea why my account is offline?

Hi KTrade,

I am also new to Trading and to Trading 212. I have been interested in share trading for a long time. How are you finding it? I first heard about Trading 212 a few years ago but was very nervous as I thought there must be lots of hidden costs or some other catch, but so far it seems very straight forward and legitimate. I would be interested know some other views.

Cheers Hans

The allowance for 20/21 is £12,300.