Trading 212 is one of the most popular brokers in Europe. It offers a wide range of products, a low-cost fee structure, and features like fractional shares and auto investing.
Unfortunately, cryptocurrencies are not one of the products you can buy on Trading 212 right now.
This article will explain why you can no longer buy crypto on Trading 212 and alternative brokers that you can use if you want to buy real cryptocurrencies like Bitcoin, Ethereum, and other altcoins.
Can you buy crypto on Trading 212?
Before the 6th of January 2021, it was possible to buy cryptocurrencies on Trading 212 via crypto-derivative financial instruments. This means that you would enter a contract where the broker would buy and sell the crypto you wanted for you, but you would never be the actual owner of the coins. Essentially you were predicting if the price of the crypto that you wanted to buy would go up or down without ever owning it.
Due to the combination of the highly volatile nature of cryptocurrencies and the leverage offered by CFDs and other products, the FCA (Financial Conduct Authority), the body that regulates Trading 212 in the UK, decided to prohibit the sale of this type of asset to retail clients as a way to protect them from heavy losses.
Some brokers allow the possibility of gaining indirect exposure to cryptocurrencies via crypto stocks, funds, or futures – Trading 212 cannot offer these products to retail investors for regulatory reasons.
However, since European clients were moved to the Trading 212 subsidiary in Cyprus and are now regulated by CySec (the Cyprus Securities and Exchange Commission), the door is now open for Trading 212 to allow European investors to buy real cryptocurrencies on the platform. Unfortunately, there is no date set as to when this will happen.
Trading 212 alternatives for trading real cryptocurrencies
Even though you can’t buy real cryptocurrencies on Trading 212, there are several other alternatives to choose from:
Coinbase is one of the biggest crypto exchanges in the world, with over 80 million users. It offers a wide range of different digital currencies.
eToro is a commission-free broker and the leading social trading platform. It supports over 45 cryptocurrencies and has many other products such as stocks and ETFs. Cryptocurrency trading costs 1%, and this fee is charged on top of the Bid-Ask spread market price for both buy and sell trades.
Binance is the largest exchange in the world. It supports all kinds of cryptocurrencies, from the more established ones like Bitcoin and Ethereum to altcoins like Ripple or Cardano and meme coins like Dogecoin and Shiba Inu. It has low fees. However, the platform is not the most user-friendly, and the company has run into several regulatory problems in the past.
Possibly the most marketed crypto platform right now, Crypto.com allows you to gain access to over 250 different cryptos and earn interest on the crypto you buy by lending them to other investors. Your fees will be determined by how much you invest (higher investments will give you lower costs and vice versa), and the platform may also be challenging to navigate for new investors.
The bottom line
If you want to invest in cryptocurrencies, Trading 212 is not the broker you are looking for.
This article presents some alternatives that allow you to be exposed to cryptocurrencies, both directly and indirectly. Explore their websites and decide for yourself!
Please keep in mind that cryptocurrencies are highly volatile, and your money will be at risk.