As the world of investing evolves and the demand for easy access to financial markets grows, many online brokerages have emerged, catering to the needs of novice and experienced investors. DEGIRO and Trading 212 have gained significant popularity among these brokerages, offering a range of services, features, and fees to attract users.
In this article, we will compare DEGIRO and Trading 212 in terms of their trading platforms, asset classes, fees, and overall user experience, to help you decide which is the right fit for your investing needs.
Trading Platforms
DEGIRO and Trading 212 both offer intuitive, user-friendly trading platforms that can be accessed through web browsers and mobile applications. DEGIRO’s platform is simple and focused, providing users with the essential tools to make informed investment decisions. In addition, the platform offers a clear overview of your portfolio, real-time market data, and basic charting tools. While it might not have all the advanced features that professional traders require, it is well-suited for beginners and those with a long-term investment strategy.
Trading 212, on the other hand, is known for its sleek, feature-rich platform that caters to both beginner and advanced traders. The platform offers advanced charting tools, customizable technical indicators, and a range of order types. Additionally, Trading 212 provides a built-in social trading feature, allowing users to follow and copy the trades of other successful traders. This can be particularly useful for beginners looking to learn from more experienced investors.
Asset Classes
Both DEGIRO and Trading 212 provide access to various asset classes. DEGIRO offers trading in stocks, ETFs, bonds, options, and futures across 50 global exchanges. While the selection of available stocks and ETFs is extensive, it is essential to note that DEGIRO does not support trading in cryptocurrencies, mutual funds, or forex.
In contrast, Trading 212 offers a broader range of asset classes, including stocks, ETFs, forex, commodities, and cryptocurrencies. In addition, users can trade over 3,000 stocks and ETFs from 30 global exchanges, as well as 150 currency pairs, commodities, and a selection of popular cryptocurrencies. This makes Trading 212 a more versatile choice for investors looking to diversify their portfolios across multiple asset classes.
Fees
One of the key factors to consider when choosing an online brokerage is the fee structure. DEGIRO is known for its competitive, low-cost trading fees. The platform charges a flat fee for stock and ETF trades, which varies depending on the exchange, and a small percentage fee for options and futures. Additionally, there are no inactivity or account maintenance fees, making it an attractive option for cost-conscious investors.
Trading 212, on the other hand, offers commission-free trading for stocks and ETFs, which can appeal to frequent traders. However, it is important to note that Trading 212 makes revenue through spreads on forex and CFD trades, which can be higher than those other brokerages charge. There are also no inactivity or account maintenance fees, making it an affordable option for most investors.
User Experience
Both DEGIRO and Trading 212 have put significant effort into creating user-friendly platforms with excellent customer support. DEGIRO provides a comprehensive knowledge base and a responsive customer support team that can be reached through phone, email, or live chat. However, some users have reported longer waiting times during peak hours.
Trading 212 boasts an intuitive platform and offers educational resources, including video tutorials, articles, and webinars. In addition, their customer support team is available 24/7 through phone, email, and live chat, ensuring users receive timely assistance.
Conclusion
In conclusion, both DEGIRO and Trading 212 offer unique advantages to different types of investors. DEGIRO stands out for its low-cost fee structure and focused trading platform, making it an ideal choice for long-term investors and those prioritizing cost efficiency. With access to an extensive range of stocks, ETFs, bonds, options, and futures across 50 global exchanges, DEGIRO users can build diverse portfolios, albeit without access to cryptocurrencies, mutual funds, or forex trading.
Trading 212, on the other hand, provides a versatile trading experience with its commission-free trading for stocks and ETFs and access to forex, commodities, and cryptocurrencies. In addition, the platform’s advanced charting tools, customizable technical indicators, and social trading features cater to beginner and experienced traders. However, users should be aware of the potentially higher spreads on forex and CFD trades.
Ultimately, the choice between DEGIRO and Trading 212 depends on your individual preferences, trading strategy, and desired asset classes. However, both platforms offer user-friendly interfaces, a wide range of assets, and competitive fee structures, making them strong contenders in the world of online brokerages. We recommend searching for detailed information on each platform for more details. Here are some suggestions:
DEGIRO:
Trading 212:
By carefully considering your investment goals and the features each platform offers, you can decide which brokerage best aligns with your needs.
Frequently Asked Questions
Can I open an account with both DEGIRO and Trading 212 if I am not a resident of the European Union?
While both DEGIRO and Trading 212 primarily cater to European clients, they do accept clients from select countries outside of the European Union. You should check each platform’s specific country eligibility list to determine if your country of residence is supported.
How secure are my investments on DEGIRO and Trading 212 platforms?
Both DEGIRO and Trading 212 are regulated and reputable online brokerages. They adhere to strict security measures and regulatory requirements to ensure the safety of client funds. However, it is important to remember that investing always comes with inherent risks, and you should carefully consider these risks before investing.
Can I open a demo account with DEGIRO and Trading 212 to practice my trading skills?
DEGIRO does not offer a demo account for users to practice trading with virtual funds. In contrast, Trading 212 provides a free demo account with $50,000 in virtual funds, allowing users to explore the platform’s features and practice trading strategies without risking real money.
Do DEGIRO and Trading 212 offer any investment advice or portfolio management services?
Neither DEGIRO nor Trading 212 provides personalized investment advice or portfolio management services. Instead, both platforms are designed for self-directed investors who make their own investment decisions. However, Trading 212 does offer a social trading feature, which allows users to follow and copy trades of other successful traders, potentially helping beginners learn from more experienced investors.
