I have some breaking news to report about Trading 212.
This is incredibly important - I will be disclosing information that I have obtained regarding Trading 212 from more than 1 corroborated source.
I cannot with absolute certainty verify the veracity and accuracy of this information but I have done my best to confirm it from more than 1 source and I feel that on balance this information is important for the public domain.
I contacted Trading 212 before making this video putting the information forward to them and asked them to provide formal commentary and confirm or deny this information.
I delayed publication in order to provide Trading 212 time to respond, but as of the point of publication several hours later, Trading 212 have not responded.
If Trading 212 DO respond, I will provide this response as a pinned comment.
The information I have obtained states that Trading 212 have been precluded from taking on new customers in the UK in full or in part by the FCA.
This information suggests that the FCA has not been satisfied with how Trading 212 operates in the UK on multiple different criteria.
And Trading 212's recent actions seem to align with this information because it appears that Trading 212 are working to resolve these issues.
But this also means that Trading 212 were not truthful with their customers when they made announcements related to this ongoing issue through the course of this year.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
This is incredibly important - I will be disclosing information that I have obtained regarding Trading 212 from more than 1 corroborated source.
I cannot with absolute certainty verify the veracity and accuracy of this information but I have done my best to confirm it from more than 1 source and I feel that on balance this information is important for the public domain.
I contacted Trading 212 before making this video putting the information forward to them and asked them to provide formal commentary and confirm or deny this information.
I delayed publication in order to provide Trading 212 time to respond, but as of the point of publication several hours later, Trading 212 have not responded.
If Trading 212 DO respond, I will provide this response as a pinned comment.
The information I have obtained states that Trading 212 have been precluded from taking on new customers in the UK in full or in part by the FCA.
This information suggests that the FCA has not been satisfied with how Trading 212 operates in the UK on multiple different criteria.
And Trading 212's recent actions seem to align with this information because it appears that Trading 212 are working to resolve these issues.
But this also means that Trading 212 were not truthful with their customers when they made announcements related to this ongoing issue through the course of this year.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Hey guys it's sasha, and today i have some breaking news to report about trade into one two. This is incredibly important. I will be disclosing information that i have obtained from more than one source. These sources are linked to trading 212 and to the fca.
This information is serious and i contacted trading212 before making this video putting this information forward to them. I have asked them to provide a comment on this information and i delayed the publication of this video from first thing this morning until later this afternoon, to give them some time to respond because of the nature of this information, i wanted to provide trading to one Two with the opportunity to inform me and correct me to tell me that this information is false or provide any other commentary that they felt necessary and, as of the point of recording this video several hours later, training 212 have not replied and provided a response. If trading 212 do provide a response, i will publish it as a pinned comment under this video. As i said, this information is based on the corroboration of more than one source.
I have been working on this for some time and speaking to my sources, but i do not have categorical proof and i cannot certify with absolute certainty that this is perfectly accurate. But i feel that the nature of this information is so incredibly important for the public domain and for the customers of trading 212 that i have decided that, on balance, i have to share it. For this reason, the information i have obtained alleges that trading 212 have been precluded from taking on new accounts for the vast majority of this year directly or in part by the fca. At the end of january, trading, 2 first suspended the onboarding of new accounts on the 28th of january trading, 202 announced within their community that they paused new client registrations.
And i quote: whilst we increase our capacity to serve more clients by scaling up our infrastructure and expanding our customer service team, there was no mention of any regulatory issues whatsoever and at that point, trading 212 stopped new accounts being able to join the platform and accounts That were already in the process of being on board. You know going through verification. Checks were reportedly also frozen. This seemed incredibly odd.
It is very unusual for a fast growing company to voluntarily stop new acquisitions due to the need of a tech upgrade. It is even more unusual for that tech upgrade to stop the company from being able to onboard new clients 10 months later in november, and it is yet more unusual for a company to onboard new clients in say europe, as trading 212 started doing in the summer. But still not on board new customers in uk some number of months later, because you would presume that if the reason was indeed the technical capacity of the platform that requires upgrades that would most likely not be dependent on the geographic location of the customers. Over the months that followed the freeze on new accounts, there have been multiple attempts from prospective customers in the trading 202 community to ask trading 212 when a new account registrations may resume, but time and time again, trading 2 either failed to respond or provided very generic Replies which did not address the question did not state any expected timelines or provide any meaningful updates on what increasing capacity actually means, or perhaps shared what the progress with that work is, and i raised this point previously when i shared my concerns and stated this is Highly unusual behavior, and perhaps there could be other reasons why trading 212 is not taking on new accounts, and now it seems that perhaps there was a reason. The information i have been provided states that the fca has one or more issues with the way that trading 202 operates in the uk. One of these issues is that trading 212 is really being operated in its entirety from outside the uk, presumably from bulgaria, where a large part of the company is based and the uk arm of trading to one two. According to this, information is a front that is not material enough to satisfy fca's requirement for uk regulated companies like trading to one two and the sea has also raised concerns about the funding structure and asset management of the company. According to the same information, i do not know the specifics of exactly what these concerns are, but looking at what trading 212 have been doing over the last few weeks, this information seems to align very well with their corporate actions earlier this year on the 21st of May and 28th of july, according to the company's house filings tradings want to put approximately 20 million pounds into their business through the issuance of new equity and, at the end of august trading, 202 appointed gary dixon to a non-executive role.
Looking after the compliance side of things amongst other items and then on the 12th and 15th of october training tomorrow to report appointed george and mantillas and muka chaudhary as directors of the business as respective chief operating officer and the ceo of the company, their linkedin profiles Indicate that they have been with trading 212 longer than that, but those are the dates on which they were formally appointed. According to the paperwork filed with company's house, then yesterday, trading 202 appointed, yet another uk director, philip parsons, to be the chief financial officer. So, in the space of just a few days, trading 202 have appointed the ceo, the cfo and the ceo of the company. Also, as i have reported previously, trading 212 have not submitted their annual accounts that were due at the end of september, and these are now in the second month of being overdue according to company's house and when any company submits accounts, especially a company that holds the Funds and assets of a large number of customers and is regulated and where that company also has auditors, there are formal obligations to provide notes on any material risks to the ability for that business to continue to operate. You might remember that earlier this year, monzo submitted their annual report and in that annual report, their very own auditor stated that there is a material risk to manzo's ability to continue operations. And if trading 202 happened to be theoretically in a position where the fca mandated a freeze and then being able to continue to offer their services to new customers, i would presume that, in the eyes of any auditor accountant, this would be a material in a factor That would have to be included in the report now i am neither a lawyer nor an accountant, and i may be wrong on this, of course, and i'm sure those people point that out, but within their community trading 212 responded to a previous video i made and Confirmed that the company has done well, i quote: trading towards financial performance in 2020 was exceptional with the company seeing record revenue and profit figures tony further down in this says, the company is proceeding with the submission of his 2020 financial reporting to the company's house, our Clients will have the opportunity to verify the company's results once the numbers are published. But the big question for me remains this: if the numbers are already produced, why have they not been submitted and given the trading to one two have had nine months to publish them in the first place and given that they always used to publish them very early, Including during the course of last year's submission, why is it this year that the publication is delayed so significantly completely out of character? And, given this information that i have come to obtain, this really is not a good look because from the outside, without any actual commentary. Being provided by trading212, it looks like based on this information.
The publication of accounts was delayed intentionally in order to resolve these outstanding issues with the fca, because in that case the risk would no longer exist and will perhaps not needs to be disclosed publicly. And that is not a good look, and i hope that that is not what is actually happening. But the just a juxtaposition of information sort of implies that that could be a possible scenario. I hold personally an isa account on trading to one two, so i am a customer as well as a reporter, and this is causing me personally quite considerable concern, because if this information is accurate, that would suggest that trading 202 were not truthful in public statements to Their customers about why it was that they were not on boarding new customers.
That's all i have to report on this at the moment i am remaining a customer, but a very concerned one. If you found this video useful, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching and as always i'll see you guys later, you.
This is worrying as I very much like the platform, their pie features I find really convenient. Hopefully this is all resolved and we have an explanation shortly. They seem to just be biding their time for some reason which makes me think maybe the FCA gave them 12 months to get their act together in some way with existing clients/revenue pending review to continue business within the UK.
Do we know of any trading platforms nearing the same features/stocks as trading 212?
I'm thinking of starting an ISA account in T212. However, regarding this news do you think I should still choose T212 as my platform? One of the main reasons I'm considering T212 is because of it's interface, which makes things really simple for new traders like myself.
Exactly the video I’ve been waiting for! I have no doubt that you are in the right track. Not taking on customers for so long has been a massive red flag for me, it was only a matter of time before the truth came out.
I look forward to updates when you get them. Thanks Sasha.
A lot of videos about investing talk about how to invest your money but not a lot of people speak about when to draw money out so do you have any educational tips you could share about that? I’ve found your videos informative and trust your fact based opinions
damn this really is wild..
sooooo… freetrade then?
Thanks for the update! Hopefully it gets sorted soon.
On a slightly different note. Have you looked into options trading in the UK? There are only a small handful of providers such as saxo. Would be curious to see a video on that
The main reason I didn't open a account with 212 is the fact that your dividends are not paid to you on the due date. They seem to hold onto your dividends and pay them to you whenever they feel like it.
Hey guys, I am newbie/wannabe investor, was planning for a T212 account but I am looking for alternatives, what platform do you recommend in this day and age? I am in Europe.
Thnx for the useful info. Are we still fully covered with the FSA regulation of £85k just in case Trading 212 goes bust or any other reason ..
It seems like T212 failed with keeping up with their accounts, have then been punished for it and the failings have continued to happen and now the fca has withdrawn.
However, given T212's recent appointments, it looks like they are now taking this more seriously and will hopefully have their house in order in the very near future.
A big thank you to you Sasha for your channel.
Your content is very good and very well explained for all levels of investors.
It's a concern the FCA are investigating at all. FCA involvement can often can be a death nail to a platform. Having previously invested in UK p2p I'm still recovering funds from 5 platform administrations. 2 undoubtedly made worse by FCA involvement (1 is actually in legal prep right now for a claim of FCA negligence). The other 3 may just have inflated losses because of FCA mandated 'wind-down process'.
FCA banned Crypto trading while plenty of millionaires have been made in other countries trading Crypto. It's as if FCA don't trust people with their own money, incase they might actually make a profit. I fear this could be same situation, the FCA often does as much damage in 'protecting consumers' then is dose good.
The elephant in the room question is, ‘why is there no new onboarding in the UK?’ The lack of disclosure makes us think the worst/impossible: Could the fca have stopped the onboarding of new clients due to a near catastrophic financial shorting loss earlier in the year? Remember all those claims that people could not make bids on their GameStop positions…. What happened then? Hypothetically that the fca could consider allowing them to try and trade out of any bad position rather than cough up themselves with guarantees, but also consider that in no way could they culpably be seen to allow new clients to expose themselves anew to the risk as well. Perhaps explaining the onboarding issue all year. So in my opinion despite t212 being a great platform I wouldn’t want the risk, hassle, losses and delayed return of my money if they went all pear shaped. If everyone pulls their money out it might not last the week… Without a clear explanation I would be afraid, very afraid. I hope I am wrong. Release the scary Sasha 👍🏻
T212 is a dodgy company. I ve been using T212 since 2018. Their Platform used to work fine then come the crush 2020. The price on the screen was incorrect to the click(open) price. You was hyping this fishie company. Never does a trade be FREE when the spreads are wide as the alantic ocean.. I ve reported T212 to FCA & Financial ombudsman. T212 should be shut down.
So do you still have some assets with them – in Bulgaria?
What will happen to customers who hold cash and shares in ISA?
Thanks Sasha, have a lot of respect for you and your work!
Clearly the FCA do not believe T212 should be allowed to service new UK customers. So current T212 customers should be considering leaving. There are a number of low cost brokers out there snd none of them have such issues. Why are you putting your money into a Bulgarian run company that is falling foul of UK regulators?
I just finished watching the previous video on trading 212…
Thanks for sharing your concerns but what does this all mean. Is our investment safe with T212 or is it better to transfer to another brokerage.
Like to trade but don't know which company to use?
In the Spring I started the process of opening an account with T212 because the costs were lower than HL, but it was very slow and I couldn’t get any satisfactory explanation, so I have stayed with HL and am pleased to not have the concerns you and others are experiencing. It could be that they have been overwhelmed by the numbers of new clients but if that’s the case they should just put out a statement to that effect.
I was not able to create an account for such a long time with my UK residence, but because I am Romanian, i was able to create an account last week with my Romanian ID, using my UK National insurance number…. Interesting. Thank you so much for your hard work.
It's such a headache that they are not communicating with their customers. By not doing so, we are automatically going to assume the worst
Really appreciate you and the video Sasha! Very insightful
Thank you for your up to date info on T212, first place i come to and see when it comes to news about T212. I watch all these videos and thank you for compiling all of that information into a 10 min clip.
Do you even sleep? How are you able to keep up with all the news/stocks/information? Thanks for the update! 🙂
Anyone know if they were to go down, how long it would take to get our money back? Thanks
From my perspective, I am totally happy with T212 and i dont have any intention on leaving. They are still the cheapest and have the most intuitive app by far.
I am more than a year with them and never had any issue. Sure, the nonsense with GME effected them and obviously their growth was much more bigger than could handle.
Really hope they can sort things out. I really like using their platform to be honest. Let's see what happens..
So, Brexit issue. They’re working on it. Got it.
Also accounts can be submitted but not approved and that won’t show.
What dose this mean for me as a customer
Should I be worried about my investments on their platform
You're at it again, misleading and lieing. FCA Ban…well they aren't banned yet are they? Aren't you concerned about getting done for defamation with constant targeted videos so you can keep getting your referral incentives? Jeez. Come on Sasha tut tut
I’ve ordered an ISA transfer to Freetrade, wish me luck
This was difficult to publish but I felt it is important for customers to be aware of this breaking news story.