This means that if you have the smallest available slice of 0.5% in pie, with the new minimum order of 1 £/$/€, the minimum amount to invest in that pie would be £200. (Much greater than the previous £40)
Not great for investors investing small pie amounts (such as myself, for example).
This is very inconvenient and reduces or even removes the benefits of pies.
I so agree with you @EquityInvestor … I don’t understand why Trading212 is doing all this changes that are bad for the small investor. It is looking as if they are in financial trouble and they are trying to keep the ship afloat. I fully understand that need, but they can’t simply do this kind of changes overnight.
I can take my girlfriends account as an example… a very small 20 euro per month split into multiple pies. (because she does not make so much money and I value the habit of saving some money) On the pie with the highest amount of stocks the lowest value is 2.8% out of the 6 euros that are assigned to it… which means there must be 35 euro in that pie to make the investment. So it would take 6 months for that investment to be done! Tell me @L.D … what is the use of this feature with this kind of limitation?
Even myself… with 180 euros per week will have to wait 2 weeks for an investment to be done because they are split into multiple pies! (I have 106 stocks and ETFs split into 6 pies)
no offense meant by this, but if your GF has so little in funds to invest. why do you assume that using a pie and spreading yourself even thinner is the correct way to go about growing your wealth? and multiple at that?
statistically, your GF would see better returns using that money to start a hobby that she can expect to profit from, alternatively, pay off an existing debt to reduce recurring expenses or learn a paying skill to free up more money to invest at a time, et cetera.
yes the low limit of investable capital and no platform based fee’s is appealing but there is a hierarchy to how you should use your money and the stock market is not at #1.
with a 20euro per month deposit, just pick an index tracker and invest in it and don’t bother with the pie feature at all. you should also consider slimming down your own diversity of shares, how many of them do you actually know enough about to fund and ignore? how many are there just because you were told you need to spread yourself across the market for a safe/stable growth?
not really. stock market requires a minimum barrier for certain aspects to function properly.
being invested rather than not is what I said, put money in an index tracker. no minimum to prevent entry, no pie to fiddle and mess with and potentially just lose money. reality is you need money to make money, I’m sure everyone will be really thankful that 20euro became 21 euros a year later thanks to their 70 holdings across 4 different pies…
if she has just 20euro to invest, better a single pie with 20 holdings tops for 1 euro each, or 10 holdings for 2euros, than putting such a small amount across many and having to see the market rally just to earn pennies.
also, it was moved to 5x, that’s a raise of just 400%.
I tried a pie with stupidly small cash value positions. holdings were up 8% and the pie didn’t gain a penny from them. raising the minimum slice reduces this occurring.
I don’t expect her to be at 20 euro for the long run… in fact she was putting 10 until 2 months ago. That is not to say she is going to 200 any time soon. She has no debt and I help her keep her recurring expenses at a minumum (I pay most of them myself). Her side gig is bringing some money but not that much and it is not a constant income. Plus a big part of her savings is going to our mutual interest: traveling. I handle her finances much like my own.
Anyway… when I first proposed her to invest in the stock market she did not believe you can really make money. This is just my attempt to show her better returns then a simple Vanguard S&P 500 ETF, while keeping volatility in check. And of course not pushing her to invest more then she is confortable. And for the 5 months I have been doing this I have been very successful. Her pies are a trimmed down version of my pie and while I could trim it further and further it would also deny the point of this exercise… to feel the owner of a few major companies, growth and dividend ones, US and european, to get that 0.0x euro dividend every couple of months and be proud being the microscopic owner of Google. To trust the whole process. You won’t get that with an ETF. As you said… isn’t that one of the points of the pie and no fees trading: to help the little and very little guys?
Again I understand Trading 212 might be in a tight spot given this and the fee for depositing via CC. I would have been more than happy to switch to a deposit route since it is free for me (I use Monese), and tried several times, but their processing of transfers is not reliable at all. If only they would have fixed that process, let everybody know the fees are getting too big to handle I am sure a lot of us would use the alternatives. Those who could switch would help those who couldn’t keep their benefit. Isn’t that one of the reason of having a community. All this changes being done over the night are not building trust at all… how am I supposed to invest my hard earned money (being 20 or 1000 euros a month) for 20 or 30 years in something in which I cannot trust?
Hi, @L.D. It would be nice if you sent a weekly/monthly newsletter discussing the present and future plans. Clear communication is key to the fog that has recently accumulated on the forum. Just an idea!
Ugh, seriously? That’s the first I’ve heard of this. I assume it’s a cost-saving measure for T212 but it makes pies much worse, especially for dividend reinvestment. Before my minimum investment was around £13, now it’s £66! This makes pies much less easy to use for me.
I can see how this would be uber irritating if you’ve been investing say £40 a month into five
pies then suddenly the minimum for each’s £200 a month. For some, this change, which appears relatively minor on the surface, may completely derail their strategy.
I think it would be helpful if T212 could at least explain the rationale behind the decision–as happened with the recent top-up change–otherwise it comes across as arbitrary.
However, as much as some don’t want to hear it, @Dao makes a good point: most investors would be best served putting smaller amounts into a tracker rather than investing as little as 20p in company X, receiving 2p dividends from company Y and so on.