Trading 212 vs Interactive Brockers

Hi All,

it’s probably my first post here. I’ve been investing in DeGiro of last couple of years. But now I’m thinking to move to Trading 212 or Interactive Brokers.

Can anyone with experience in both platform give some first hand advice? I know Tranding 212 is almost free, but I don’t think IBKR is crazy expensive either. My style is to buy some ETFs once a month and repeat each month. No trading, no stock picking.

Thank you in advance.

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IBKR can be cheaper if you’re placing big orders, eg high four figures, especially for US stocks but less so for EU and UK securities.

I’ve used both and found IBKR’s interface difficult to navigate. Its app is woefully poor too.

I’d say go with T212 unless IBKR’s going to save you a significant sum.

Unless you’re investing thousands a month, it’s best to avoid the £1 fee – even on a grand, it’s 0.10% which you wouldn’t pay with T212.

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Hi, and welcome to the community!

The only practical reasons to choose Interactive Brokers over Trading 212 are to trade options or if you day trade with large amounts.

Trading 212 is generally cheaper (in case you trade with your own currency - 100% free), but if you place large orders too often ($10k+) - IBKR could be more viable.

Other than that - the IBKR app and UI are complete crap. They are stuck in the 90s and will never evolve (yes, including their GlobalTrader app - it does not let me log in 50% of the time).

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Yes, I’ve noticed that IBKR interface is not ideal. I’m using their “training” account to try and make up my mind.

I would recommend borrowing someone’s referral link and trying 212 out to see what you think. Who knows you might get a magical £100 free share, but most likely it will be worth around $10, but better than nothing.

Since you say you only buy ETFs, then there is no platform fee here. You can setup your chosen ETFs in a Pie, and select a regular investment schedule if you prefer automation. Then it’s just a case of setting up a standing order to pre fund your account and you are set.

Alternatives for ETFs could also be InvestEngine. It’s also free if you choose your own ETFs, or 0.25% if you pick their managed offer plus ETF fees. Not checked their signup offer but think it’s something like a £25 bonus for investing £100 for a year.

Oh to add, I don’t think 212 or IB support inspecie transfers in/out, only cash at present but might be wrong. Just incase at a later date you decide you want to consolidate or move your investments elsewhere.

Let us know how you get on!

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I already have an account with Trading 212. Thanks for advise with InvestEngine though.

One more thing which I forgot - Trading 212 is lending my securities, IBKR don’t. What is the risk here?

Happy Cake day!

There is always risk in everything, but anyone that borrows shares has to put up collateral. The simplest way I can explain it is that it is like an insurance policy to protect your assets.

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If you open an ISA then securities lending is no longer a thing

Some other points worth noting.

T212:

  1. The interface is probably one of the best. Very modern and user friendly.
  2. Limits the number of shares that you can hold, which isn’t ideal.
  3. Account protection: FSCS upto £85k.
  4. No in/out specie unless it’s cash.

IBKR:

  1. Account Protection: They seem to offer UK accounts US protection, which states: “Your eligible assets are protected from loss under the US Securities Investor Protection Corporation at in an amount of up to USD 500,000 (subject to a cash sub-limit of USD 250,000). As with all securities firms, this coverage protects against the failure of a broker-dealer, not against the loss of market value of securities”.
  2. Less user friendly interface, but usable.
  3. Does not limit how much stock you can hold.
  4. In specie is being worked on, latest estimate Q4.

It’s also worth noting that if you’re OK with share lending, I think I’m right in saying IBKR will give you half the income it receives.

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I would love to open ISA. Unfortunately, in my country of residence it doesn’t’ exist.

T212 is superior in every way except it does not list all the stocks that I wish to trade.
I use IB but only for stocks that T212 does not list.

Why are you leaving DeGiro?

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If you only invest in ETFs which are on the “kernlijst” of DeGiro, I would stay there. For the rest I like T212 much more and it’s also cheaper.

I’m not leaving Degiro, merely diversifying assets. It’s costly to leave DeGiro, so will just stop adding there and will start adding in Trading212 or IB.

The problem is that the list is changing, and some ETFs are not free anymore. Also, as the portfolio grows, there is growing safety concern. I don’t want to keep all the assets with one broker.

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I would expect more increases in commissions:

https://archive.ph/cDBKq

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Then move to T212. I have moved most of my money to T212. Some stocks and ETFs still at DEGIRO.

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I am on the side of T212 too. I think, they offer better conditions.

I have the same question but id like to trade with orders over 10k guys, also IBKR also do an ISA so very tempted but not sure about the fees etc. I like to trade stocks though not ETFs