Currently in specie transfer is not possible, meaning it would have to be done as cash.
Vote on any upcoming merger that your company is involved in, which you cannot on Trading 212
Hereās what I donāt understandā¦ if IBKR are intermediary and charge Commission where are Trading 212 getting their income from given that they offer commission free trades? Even if charging on certain deposit transfers and fees on certain stocks surely they cannot cover the cost of the IBKR commission whilst still touting a commission free status? Do they introduce a margin spread on the price or is it possible that there isnāt an actual trade taking place just an assignment of beneficial ownership?
Youād assume they havenāt just signed up to the retail arm of IBKR right? Iād imagine theyāre on vastly different terms to the average punter.
Illegal.
Would be ridiculous to do this - who would fund the dividend?
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The Invest/ISA side is mostly funded by interests they get from IBKR on lending the shares they hold. Of course, only the Invest shares are up for lending.
It took some time to reach critical mass, but since a couple of years now the Invest/ISA side is self-sustaining.
As a nominee account, they also do not get the same fee structure than you or I, and even small hedge funds.
Lastly, theyāve done a lot of work in optimizing their transaction process.
A few years ago, most transaction would be sent to the exchange; nowadays, most of your buys/sells are OTC: T212 is always holding a buffer of shares on their books, and tries to honor every transactions from their own books, of course at the specified market price.
Internalising such transactions avoids a lot of fees.
Lastly, ultimately, their business is vastly supported by their CFD operation, which is very profitable.
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There is the 0.15% FX fee as well is there not, but still significantly cheaper than most other platforms in an all round sense.