| TW4TD hive mind - Trading 212 advice 09:57 - Jun 3 with 2171 views | Lord_Lucan |
I have an old friend (in both senses of the word) who asks me questions about things he needs info on.
On occasions I have no idea what he is talking about and today is one of them.
He seeks advise on Trading 212
Initially he told me it was a bank account that gave him 5% interest but after 5 mins of googling it looks to me like some kind of broker who invest and play about with your money. |  |
| |  |
| TW4TD hive mind - Trading 212 advice on 10:09 - Jun 3 with 2103 views | J2BLUE |
It's a good app.
You can buy fractional shares, funds etc. You get 5% interest on any cash you have within the app that is not invested.
Nothing more exciting than buying £1.01 of Unilever stock. |  |
| |
| TW4TD hive mind - Trading 212 advice on 10:11 - Jun 3 with 2097 views | Lord_Lucan |
| TW4TD hive mind - Trading 212 advice on 10:09 - Jun 3 by J2BLUE |
It's a good app.
You can buy fractional shares, funds etc. You get 5% interest on any cash you have within the app that is not invested.
Nothing more exciting than buying £1.01 of Unilever stock. |
So, someone could lob in £100k, invest £1k in shares and receive 5% interest on the £99k balance? | |
| |
| TW4TD hive mind - Trading 212 advice on 10:17 - Jun 3 with 2056 views | EJP |
| TW4TD hive mind - Trading 212 advice on 10:09 - Jun 3 by J2BLUE |
It's a good app.
You can buy fractional shares, funds etc. You get 5% interest on any cash you have within the app that is not invested.
Nothing more exciting than buying £1.01 of Unilever stock. |
As it’s the first working day of the month and I have my mandatory annual CASS training to complete, how is your money protected in the event they go under? |  | | |
| TW4TD hive mind - Trading 212 advice on 10:19 - Jun 3 with 2055 views | J2BLUE |
| TW4TD hive mind - Trading 212 advice on 10:11 - Jun 3 by Lord_Lucan |
So, someone could lob in £100k, invest £1k in shares and receive 5% interest on the £99k balance? |
Not entirely sure about those sort of sums but it says no minimum or maximum balance so I guess so.
It may also only have protection up to £85k.
You can get 4.55% easy access on Monzo. 4.9% if you're happy to lock the money away for 6 months.
I assume other banks will offer similar. | |
| |
| TW4TD hive mind - Trading 212 advice on 10:21 - Jun 3 with 2036 views | J2BLUE |
| TW4TD hive mind - Trading 212 advice on 10:17 - Jun 3 by EJP |
As it’s the first working day of the month and I have my mandatory annual CASS training to complete, how is your money protected in the event they go under? |
I'm just reading off the app here so please do double check but it seems the money is not protected as it's mainly held in QMMFs
https://helpcentre.trading212.com/hc/en-us/articles/16060082000157-What-are-the-
Bank probably a safer option for a small reduction in interest. [Post edited 3 Jun 2024 10:22]
| |
| |
| TW4TD hive mind - Trading 212 advice on 10:36 - Jun 3 with 1939 views | EJP |
Thanks - £85k protected under CASS rules. No idea though how long it would take to get the money back if they went under. [Post edited 3 Jun 2024 10:38]
| | | |
| TW4TD hive mind - Trading 212 advice on 10:41 - Jun 3 with 1894 views | GavTWTD |
I can vouch for the app. A friend of mine recommended it and both he and I got £10 of shares on it. I then did similar with a couple of friends and again I and they got £10 shares each time. I enjoyed using it so I started to get into share trading in a small, fun way and I made £100 profit. Sold them as I needed the cash but I'd use it again. Recommended.
I can't vouch for the 5% but it did ask what I wanted to do with uninvested money but I didn't use the app for that purpose. |  |
| |
| TW4TD hive mind - Trading 212 advice on 11:38 - Jun 3 with 1733 views | Daninthecampo |
Its a good app but more for trading than holding cash. All trading is done via Interactive brokers i believe.
Covered under the FSCS so upto 85k protected |  | | |
Login to get fewer ads
| TW4TD hive mind - Trading 212 advice on 18:35 - Jun 3 with 1534 views | BlueStreak |
| TW4TD hive mind - Trading 212 advice on 11:38 - Jun 3 by Daninthecampo |
Its a good app but more for trading than holding cash. All trading is done via Interactive brokers i believe.
Covered under the FSCS so upto 85k protected |
It isn’t for the cash though if you want the higher 5.2% rate. You have to confirm you understand it isn’t a normal bank savings account before they let you have it. So just be careful (I am using it though) |  | | |
| TW4TD hive mind - Trading 212 advice on 18:41 - Jun 3 with 1524 views | DanTheMan |
| TW4TD hive mind - Trading 212 advice on 10:11 - Jun 3 by Lord_Lucan |
So, someone could lob in £100k, invest £1k in shares and receive 5% interest on the £99k balance? |
This is not financial advice but...
All they do is invest in a QMMF and take 10% whilst giving you 90%. This might work out OK for you you do have £100k you want to put somewhere and understand that it's an investment and not a bank account, capital is at risk etc. etc.
However, it worth noting that you can invest in a QMMF directly as part of Stocks and Shares ISAs which may work out better if you don't have large sums to invest.
Or, as others have said, go with the safest option of a bank account with very close interest rates. |  |
| |
| TW4TD hive mind - Trading 212 advice on 19:11 - Jun 3 with 1506 views | Swansea_Blue |
| TW4TD hive mind - Trading 212 advice on 18:35 - Jun 3 by BlueStreak |
It isn’t for the cash though if you want the higher 5.2% rate. You have to confirm you understand it isn’t a normal bank savings account before they let you have it. So just be careful (I am using it though) |
Is it mainly a convenience thing? Because you can pretty much guarantee higher interest rates in the medium term through managed funds. But those can be a bit more effort setting up (not much, but it's not just a click on an app). |  |
| |
| TW4TD hive mind - Trading 212 advice on 20:03 - Jun 3 with 1463 views | Daninthecampo |
| TW4TD hive mind - Trading 212 advice on 18:35 - Jun 3 by BlueStreak |
It isn’t for the cash though if you want the higher 5.2% rate. You have to confirm you understand it isn’t a normal bank savings account before they let you have it. So just be careful (I am using it though) |
Thanks that's interesting to know, as a financial adviser I mostly invest in funds/ etf's, for the small amount of direct stocks/ crypto i buy i just use Revolut as its so easy | | | |
| TW4TD hive mind - Trading 212 advice on 22:27 - Jun 3 with 1394 views | BlueStreak |
| TW4TD hive mind - Trading 212 advice on 19:11 - Jun 3 by Swansea_Blue |
Is it mainly a convenience thing? Because you can pretty much guarantee higher interest rates in the medium term through managed funds. But those can be a bit more effort setting up (not much, but it's not just a click on an app). |
Yes, for me essentially.
I am just spreading cash around at the moment, managed funds, stocks and shares ISA and this savings account. | | | |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
