I read that Trading 212 UK Ltd. is registered in the UK and is authorized by FCA. Another entity, Trading 212 Ltd., is registered in Bulgaria and authorized by the Financial Supervision Commission. All clientsā funds are kept separately in segregated bank accounts and are covered by FSCS.
Can you please explain the role of both entities (Trading 212 UK Ltd. and Trading 212 Ltd.)? Do you assign each entity to a different set of customers, or you assign each entity to a different set of products? How do I know which compensation scheme applies for my account?
I opened Invest account and want to invest in ETFs. Is my account in the event of default or bankruptcy of the broker protected up to Ā£85,000 or up to ā¬20,000 ? Can you please elaborate more on the account safety?
the above link will list the rules of eligibility and contains a link that will determine upon application whether you are covered by the scheme. from what I can tell, as along as T212 is covered by FSCS then all clients who have lost money are eligible to make a claim, what I couldnāt easily determine was whether this applies to all individuals or just UK accounts regardless of whether they reside in or out of the UK. As UK and EU law remains unchanged until the end of 2020, the question will come up as to whether or not the application of the FSCS will also undergo a change beyond this date.
As T212 puts the funds in a UK-based bank, this should mean that all clients of T212 are covered by this scheme, provided they are not citizens of any European countries with legislation specifying otherwise.
Does the FSCS rules dictate the clientsā funds have to be deposited in a UK based bank ? Because I couldnāt see this at the link you gave @Dao and havenāt yet seen a source stating this !
And is the compensation scheme only for only for cash funds or also for the securities ? Because itās unclear to me from their statement :
" 1. The financial services firm you did business with has failed and is unable to return your money itself (the company is āin defaultā).""
Money as inā¦ ?
Does the FSCS rules dictate the clientsā funds have to be deposited in a UK based bank ? Because I couldnāt see this at the link you gave @Dao and havenāt yet seen a source stating this !
And is the compensation scheme only for only for cash funds or also for the securities ? Because itās unclear to me from their statementā¦
Yes, both your funds and stocks are covered by FSCS. It doesnāt really matter where our funds are stored, since the levies which we pay are going directly to FSCS. Hence, their fund is the one which will be used for compensation, if any. You can read more about the topic here:
We offer execution-only service. We donāt offer trading advices. Hence the reason why you canāt initiate the ābad investment adviceā claim type.
Ah well, I didnāt know it was a basis for initiating claims ! I thought it was more like starting a case for them to study !
Thanks for your answers T212 is amazing !
If so, they should be contacted to review their article, itās a very popular broker comparison portal. According to them, non-UK clients are not covered by the FCA and are only protected up to ā¬20k.
Indeed the information in the table is incorrect and misleading. As a matter of fact, all clients of Trading 212 UK, irrespective of their country of residency and origin (UK, Germany, France, Switzerland, Mexico, etc.) are subject to the UKās investment protection scheme (the FSCS).
However, if you were a client to another broker within our group - for example, Trading 212 Ltd. (Bulgaria) only then would you be subject to a different investment protection scheme (as it is a specific scheme to each jurisdiction).
Currently, all individuals registering on the Trading 212 platform are automatically registered with Trading 212 UK & are subject to the Ā£ 85,000 FSCS protection scheme.
Thanks @Michael.P and @David thatās the best explanation Iāve read on this matter, great!
This is the key info which I havenāt seen posted before and should clear all doubt: āCurrently, all individuals registering on the Trading 212 platform are automatically registered with Trading 212 UK & are subject to the Ā£ 85,000 FSCS protection scheme.ā
Could you specify what you mean by ācurrentlyā?
If I registered in Trading 212 in January 2020 am I registered with Trading 212 UK and protected up to Ā£85000?
Yes. If you registered last year, you are covered, if you registered today you are also covered. and if you register at any point before this changes you will still be covered et cetera.
ācurrentlyā as this will only change once the EU/UK Brexit negotiations conclude and they decide on a new policy going forwards from there.
T212 is amazing !