Money Protection - Outside UK

Hello,

I trade from Italy. I have read that with Trading 212, my funds are kept in a segregated account and are protected by the FSCS up to £85,000.

However, as I have said I trade from Italy and in EUR (€), not GBP(£).

Does the FSCS protection apply to Italian customers too? Or are customers outside of the UK treated and protected differently?

Please do let me know every detail and insight you know about this.

Thank you.

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You should tag the customer care team when asking those questions.
They are the only ones able to give you a proper answer :slight_smile:
@Team212

For what I know, EU customers are onboard with the UK company so we are covered up to 85000£ (I don’t know what the equivalent is in euros but I’d say it’s probably around 100 000 or something).

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That was the case until Brexit. Passporting rights to operate with UK licence are very much in the air right now.

Interactive Brokers is going to move EU customers away from IB UK to other entities within the remaining EU.

More info here: https://ibkr.info/node/3515

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Pls reply to me also when you get a reply *

Also ^ I live in Denmark but i have UK passport. How does this apply to me ?

Maybe T212 is planning to move us to their bulgarian entity in that case…(?)
This would be a shame though as we wouldn’t benefit from the same kind of insurance on our money (only up to 20 000 euros if I remember well).

I’m sure @Team212 will keep us informed as soon as they have a strategy to deal with this Brexit clusterfuck lol

@Team212 If T212 moved UK customers over to Bulgaria that would be a pretty effective way to kill your business. Protection or no that is extremely worrying. Can T212 staff confirm this will NEVER happen as I would need to withdraw my account if there is any withdrawal from UK FCA protection.

@Old.Man
You have an entire thread here with the big boss @Ivan talking about all that.
Check it out. They’re not sure how it’s gonna go for now.

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So are we supposed to give great amounts of funds to a company with so much uncertainty - a company that doesn’t even give you legal rights on the stocks you buy from them? (They store the shares you buy at Interactive Brokers, nominated to them, not you. You only have rights to the economic gains from these stocks, for example you don’t even have voting rights!).

I mean, I get that they offer zero commissions, but at a certain point it becomes just too risky. What does other people think about this?

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Unless they haven’t announced that they got a licence or will get a licence in another EU country, I will definitely won’t be keeping my money with a Bulgarian broker. As a eastern european myself, ha, not a chance.

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Exactly. I mean, if they are serious about their business, they should just get their license in a well-regulated European country and be done with it. People understandably have doubts, why don’t just make moves and give everyone some peace of mind?

It’s not like Brexit is such an hypothetical event. It is real and its consequences could be harsh. People want peace of mind and regulation - things that apparently you don’t get with a Bulgarian broker, not as much as in other countries at least.

I love the idea of zero fees trading but there are so many little things that won’t let me enjoy it with peace of mind. With the way things are currently set up, it is just too easy to end up in a bad situation, especially if you plan to trade for the long term (like me).

In my opinion, at a certain point the risk just becomes too high. Such a pity as the platform, staff responsiveness and many more things are definitely on point!!

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From what I’ve read, they are considering that as an option.
They won’t be able to provide peace of mind as long as they don’t have establish a plan. It’s probably work in progress…
If they plan to move us to the bulgarian entity, surely they will inform us before so we can choose what we want as customers. No ?

I think Bulgaria is in the EU actually. Dunno for how long it has been the case or if it makes it any safer when for our money…

Yes they are in the EU but that is not the end of the story. What would happen if you need to make a claim? Are you going to translate your claim to Bulgarian and/or end up in a Bulgarian Court subject to Bulgarian laws?

Nothing against Bulgaria but you understand what I mean.

I know you can argue the same about translating to German (for instance) but you will agree with me that we all have a bit more confidence in German/French/Netherlands laws/regulations.

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Yeah for sure :slight_smile:
I’m pretty confident they’ll find an alternative.
Trading 212 has been a huge success so far and I don’t think they’re willing to lose customers now over that kind of thing.

@tsukeyomi It doesn’t matter where you’re from, the company (T212 UK) is covered by the FSCS. There is a ton of content on the community forum about this - there’s nothing to worry about.

@Enlil That’s correct.

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I think this is only true for UK customers.

Based on https://www.trading212.com/en/Company-Overview

For your safety and in compliance with our regulations, all clients’ funds are kept separately in segregated bank accounts and are covered by the Financial Services Compensation Scheme, FSCS (Trading 212 UK Ltd.) and the Investors Compensation Fund, ICF Bulgaria (Trading 212 Ltd).

In the unlikely event of default, the FSCS compensation is up to GBP 85 000 and the ICF Bulgaria compensation is up to 90% (but limited to EUR 20 000) of the client’s funds. Each client will be compensated if one of our companies fails to comply with its obligations to the clients due to its financial state.

So for EU, the compensation is indeed up to 90% (but limited to EUR 20 000) of the client’s funds by the ICF Bulgaria compensation

Also, there is this table here (https://brokerchooser.com/broker-reviews/trading-212-review#review-part-safety)

@Team212

I have the same question. I live in France. I have posted above some resources and some thoughts. Do you have a more clear view on this topic? Any update? Do you use 212?

This is a recurrent topic. Perhaps T212 could pin one of these threads to the top of the forum.

As it stands right now every EU customer is given service through T212 UK using what is known as “passporting rights” i.e. licenced in one EU country serves all. This means right now EU customers have UK protection and compensation schemes.

However once passporting ends in January it is still to be seen what T212 will do as they are quiet about the matter. Other financial companies like Revolut or Interactive Brokers have already written to their clients to explain new arrangements (normally moving to EU entity losing UK compensation scheme).

Exactly. I want to join 212 and leave from Revolut if I manage to get a reply to my questions above.

Revolut made clear that EU customers are going to be moved to Lithuania. And that we will no longer have the benefit of EU regulatory protection but we will continue to benefit from UK consumer protection laws or regulations that may apply to the trading service.

What is the case with 212?