Invest & ISA - Account Funding Conditions Update

If u deposit from Revolut to 212 I can’t see why not.

I am afraid it’s just the matter of time additional fees appear - withdrawals (why not if there still costs of payment processors), market orders (third party processes your order to change hands on stock exchanges) and maybe something I am not aware of. These fees will still be “cost covers”, not fees making T212 profitable.

Effect? We Pay, but we still can name T212 fee free (as it only covers necessary costs).

AML regulations force brokers to not send money to a different bank account or method for ~2 months (about 44 days in IBKR case).

So you can effectively deposit via Revolut and in the longer run withdraw your funds and profits to your own personal home bank account, provided you can prove the ownership of the account and reach out to the T212 support.

1 Like

I don’t have problem to use bank transfer instead of debit card / google pay if they provide local bank account, because It’s the only free and fast option for international customers with domestic currency now. Especially if your Trading account is also in you home currency.

They just completely screwed up international customers.

And honestly, I would never open the account if the fee was there from beginning.

For now, I loaded up a money for one year of auto invest (I really LOVE this feature, it’s game changer), but that’s probably it, because I don’t believe they will (try to) found any free option for minority of customers. I don’t have problem with 0.07% fee or some reasonable monthly fee (for customers outside SEPA / GBP) for card deposits, but 0.7% is insane.

7 Likes

I fully agree with you.

It looks like they are hoping to bring the instant bank transfer option currently available to the UK only to more countries soon.

Yep, 0.7% is pretty insane but reminder that 212 have not plucked this number out of thin air nor have they decided that this is how much they want to profit off your deposits - this is the amount required to cover the cost charged to them when you deposit by the payment processing companies.

As someone UK based who still has access to instant and free deposits, of course I can’t fully sympathise with your situation but do remember that 212 don’t want to introduce things (like deposit fees) that annoy customers, they do it because they have to to keep the business sustainable. You really think they just hold a meeting one day and decide the best thing for the business is to try and inconvenience customers as much as possible?

2 Likes

Look, trading account is not bank account. If I am not happy with one, I can open another within 15 minutes and transfer money (0 cost, just time). There is no option to transfer stock from Trading now and I don’t want sell my portfolio and pay taxes just because they miscalculated their business.

There are different rules for each country already. I don’t cry that I cannot get free stock in my country (as referral). So they could offer some “country specific” condition for card fees also where the free / low cost alternative does not exists.

3 Likes

So Revolut gbp to gbp bank transfer does not work? Or transfer wise?

So starting January, Trading 212 can no longer promote its service as “commission-free”… I was thinking of an alternative solution which might please most customers: 1 free deposit per calendar month, with subsequent deposits commissioned e.g. ~1%? I assume it’s already been thought of plus the maths behind, but in any case would this not be a viable option? @Team212

My TradeStation Global account has a similar method, 1 free withdrawal/month, then 1 Euro fee.

5 Likes

What commission will T212 be making from January that means it “can no longer promote its service as commission-free”?

If it is the account funding fee, that is not a commission. Furthermore they make no profit from it.

3 Likes

Sure it should have a system for EU non UK because for example my bank in Luxembourg is ING and charges me money for transferring cash to UK account.
Now I have to get charged when using my credit card. Trading212 should open accounts in different currencies for EU non UK to benefit from free charges!

Does the act of depositing after 4.1.2021 incur the 0,7% fee, or do I have to pay 0,7% of my funds I deposited before 4.1.2021 as well?

Lets say I deposit 10k on the 2.1.2021 but nothing after 4.1.2021 until they fix this issue for nonUK customers. Do I have to pay 0,7% for the amount that has been deposited but not invested yet?

So long as you deposit before 4.1 there should be no fee. Your strategy is sensible. Interest rates are so low that they is little to be lost by way of bank interest. If you have the money you may as well transfer now and leave it uninvested until you are ready to do so.

2 Likes

SEPA transfer completed this morning. Definitely not instant SEPA !

SEPA is not a good deal. Okay, it’s free, but once I sent EUR to my USD T212 account, the exchange rate was terrible. No information on the rate, only the dollar amount. 1.22 market EUR/USD, received at 1.20, which is even worse than 0.7% card deposit fee.

That being said, having USD set up in T212 and living in EU is no longer free on deposits.

3 Likes

Same! kind of weird . :no_mouth:

And there are fees on SWIFT also (SHA). I don’t know what are the conditions for Trading corporate account or if they pay it for us (?), I was only able find the fee for Personal Barclays account, which is 7 - 13 pounds for incoming transfer, depends on currency.

Rabdom question.

I select my Card and put in the amount and the funds are there instantly for me.

Is that the Instant Transfer thing?

If you are using your card then no that does not sound like the instant bank transfer option people have been talking about. The instant bank transfer option that uses open banking does not require any card details, it is a connection straight to your bank account.

1 Like

Perhaps a screenshot will help

Instant bank transfer is the top choice. Not debit card which is third choice

3 Likes