Hello, investor! Are you trying to decide between Trading 212 and Interactive Brokers for your investment needs? This article will guide you through a detailed, side-by-side comparison to help you make the best choice.
We use both brokers, and we understand how hard it can be to choose which one to use!
Below we’ll explore how Trading 212 and Interactive Brokers stack up against each other in key areas like features, fees, supported financial instruments, and regulation. By the end, you’ll have a clear understanding of which broker aligns better with your investment strategy.
Below, you’ll find a comparison table and a breakdown of the pros and cons of each platform, highlighting the key differences. Let’s dive in!
Trading 212 vs Interactive Brokers
- Interactive Brokers: Best for advanced investors. It’s our recommended choice overall.
- Trading 212 Best for beginners. It’s our recommended choice for interest and commission-free stocks and ETF trading.
All in all, we would feel confident investing with both companies!
Trading 212 is a fantastic choice for low-cost investing, especially if you’re interested in earning interested on your cash. It’s simple, straightforward, and cheap for most retail investors. Plus, new users get a free share with our Trading 212 promo code – IITW.
But if you’re looking for the best overall broker with a comprehensive range of tools, products, and features—Interactive Brokers takes the crown. It is one of the oldest brokers around, it’s a publicly-listed company, and while other brokers might offer higher rates and lower fees to attract new users, IBKR’s model is sustainable and transparent, making it a solid long-term choice, and that’s why we choose it as the winner.
Comparison
| Category | Trading 212 | Interactive Brokers |
| Demo account | Yes | Yes |
| Account minimum | €/£10 | €/$/£0 |
| Interest on uninvested cash (annually) | EUR: 4.00%; USD: 4.60%; GBP: 5.10% (as of October 2024) | EUR: 3.189%; USD: 4.330%; GBP: 4.701%The first 10k don’t earn interest. Up to 100k in assets, the interest is proportional to the account size. (as of September 2024) |
| US stocks fees | €/£0 | Tiered plan: $0.0035 per shareMin. $0.35; Max. 1% of trade value. |
| EU stock fees | €/£0 | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €29. |
| ETFs | €/£0 | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €29. |
| Currency conversion fee | 0.15% | 0.0020% |
| Regulators | FCA, CySEC, and FSC | FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, and MNB |
Want to see a more in-depth comparison? Check the full comparison of Trading 212 vs Interactive Brokers in our broker comparison tool.
About Trading 212
Trading 212 is a fintech company based in London that aims to democratize the entire investment process through a simple web and mobile application.
The company supports more than 15 million users to invest in over 10,000 stocks and ETFs, Forex, commodities, CFDs, and cryptocurrencies. An interesting fact is that your shares are held in a pooled account at Interactive Brokers, commonly known as an omnibus account. For more information, you can visit the Trading 212 website.
Additionally, it offers an attractive interest rate on uninvested cash. For more details, you can explore how the Trading 212 interest on uninvested cash works.
You will find commission-free stocks and ETFs trading, fractional shares, and even an automatic investment system through Trading 212 AutoInvest. New users can also receive a free fractional share worth up to £/€100 by signing up with the Trading 212 promo code: IITW.
On the downside, it shows limitations regarding available products.
For more detailed information about Trading 212, check out our Trading 212 Review where our specialists have conducted a full review of the broker.
Trading 212 pros and cons
Pros
- Commission-free Real Stocks and ETFs trading (other fees may apply. See terms and fees)
- AutoInvest & Pies feature
- Fast and easy account opening process
- Demo account
- Top Tier Regulators
- One free share worth up to €100 using the promo code "IITW"
- High interest on uninvested cash
Cons
- Limited product portfolio (no Options, Bonds, Mutual Funds or Futures)
- No relevant Fundamental tools
- 0.15% of Foreign exchange fees
About Interactive Brokers
Interactive Brokers is a global online broker and publicly listed company that surpassed major financial crises, showing resilience and a rigorous risk management process.
It offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets.
Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options, and ETFs.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. On the other hand, IBKR has one of the best offers in the world in terms of security, and product offer and it’s an extremely well-reputed broker.
If you would like to know more about Interactive Brokers, check our Interactive Brokers review, where we have done a full review of the broker.
Interactive Brokers pros and cons
Pros
- Low commissions on US stock trading
- No monthly inactivity fee
- The broadest product and markets range in the brokerage industry
- Demo account
- Excellent reputation (founded in 1978)
- Extensive research and Education tools
- Has a modern mobile trading app to trade Stocks, Options and ETFs, ideal for novice investors, IBKR GlobalTrader.
- Offers interest on uninvested cash balances
Cons
- Complicated and lengthy account opening process (but fully online)
- Steeper learning curve for beginners
- Website is difficult to navigate
- Interactive Advisors (Robo-advisor feature) is only available for US customers
Fees & commissions
| Fee type | Trading 212 | Interactive Brokers |
| Stocks (US, EU, and UK) | €/£0 | Fixed plan: $0.005 per shareTiered plan: $0.0005 to $0.0035 per share |
| ETFs | €/£0 | Fixed plan: $0.005 per shareTiered plan: $0.0005 to $0.0035 per share; $0 on No Transaction Fee ETFs |
| Options | Not available | Fixed plan: $0.65 per contractTiered plan: $0.15 to $0.65 per contract |
| Futures | Not available | Fixed plan: $0.85 per contractTiered plan: $0.25 to $0.85 per contract |
| Crypto | 1.5% fee (CFDs only) | 0.12% – 0.18% fee (depending on monthly volume) |
| Currency conversion fee | 0.15% | 0.02% – 0.03% |
| Spreads | From 0.7 pips (Forex) | From 0.1 pips (Forex) |
| Social trading | No extra fees | No extra fees |
| Withdrawal fees | Free | Free (One withdrawal per month)Subsequent withdrawals are charged (fees vary by method and currency) |
| Inactivity Fee | €/£0 | €/$/£0 |
Trading 212 offers a straightforward, commission-free structure ideal for casual investors, while Interactive Brokers provides more competitive pricing for active traders through its tiered fee model, making it a better choice for those trading in larger volumes.
Investment products
| Investment products | Trading 212 | Interactive Brokers |
| Stocks | ✔ 7,000+ stocks (real and CFDs) | ✔ 17,000+ stocks |
| ETFs | ✔ 1,500+ ETFs (real and CFDs) | ✔ 13,000+ ETFs |
| Cryptocurrencies | ✔ 20+ cryptocurrencies (CFDs) | ✔ Crypto futures (direct crypto available in some regions) |
| Forex | ✔ 180+ currency pairs (CFDs) | ✔ 100+ currency pairs |
| Indices | ✔ 35 indices (CFDs) | ✔ 80+ indices (real and CFDs) |
| Commodities | ✔ 45+ commodities (CFDs) | ✔ 135+ commodities (futures and CFDs) |
| Options | ✘ Not available | ✔ Yes |
| Futures | ✘ Not available | ✔ Yes |
| Bonds | ✘ Not available | ✔ Yes (government and corporate bonds) |
Interactive Brokers offers a broader range of products, including options, futures, and bonds, which Trading 212 lacks. However, Trading 212 excels with its commission-free trading on stocks and ETFs and offers more competitive interest rates on uninvested cash, making it ideal for those focused on these assets. Additionally, while Trading 212 only provides crypto trading through CFDs, Interactive Brokers grants access to real cryptocurrencies and futures.
Safety
| Aspect | Trading 212 | Interactive Brokers |
| Regulatory Authorities | FCA, CySEC | FCA, SEC, CFTC, FINRA, ASIC, and others |
| Investor protection | Up to €20,000 (EU clients) Up to £85,000 (UK clients) | Up to €20,000 (EU clients) Up to £85,000 (UK clients) Up to $500,000 (US clients) |
| Private insurance | Yes, additional insurance of up to €1 million (EU clients) | Yes, additional insurance for excess SIPC coverage |
| Asset segregation | ✔ | ✔ |
| Negative balance protection | ✔ | ✔ |
| Licenses | Multiple jurisdictions | Multiple jurisdictions |
| Listed on exchange | ✘ | Yes (NASDAQ: IBKR) |
| Transparency | Average | High |
Both Trading 212 and Interactive Brokers are governed by well-regarded regulatory bodies, offering strong safeguards for client funds. However, Interactive Brokers stands out due to its listing on the NASDAQ, which imposes additional layers of public accountability and transparency on its financial operations.
Trading platforms
Trading 212
Trading 212 has both a mobile and a web trading platform presenting two account types (Trading 212 Invest and CFDs).
Interactive Brokers
Interactive Brokers offers both the IBKR GlobalTrader mobile app and various web-based platforms, including TraderWorkstation, Client Portal, and IBKR Desktop, supporting a wide range of financial products.
Customer support
Trading 212
Trading 212 offers customer support through email, live chat, and an extensive FAQ section. The support is available in multiple languages, ensuring accessibility for a broad user base.
Interactive Brokers
Interactive Brokers provides 24-hour customer service via phone each business day, along with support through email and live chat. They also offer a comprehensive knowledge base and educational resources to assist users.
How to invest in the S&P 500 on Trading 212 and IBKR
Want to learn how to invest in the S&P 500 in both platforms?
Check our step-by-step videos, where we show you how to place your trade using both apps. It might be useful to get a feel of both companies before deciding which one to use!
Trading 212
Interactive Brokers
Trading 212 vs Interactive Brokers: Final verdict
Interactive Brokers
Best for every investor (best overall)Trading 212
Best for beginners and those looking to invest in interest on uninvested cash
Choosing between Trading 212 and Interactive Brokers isn’t always straightforward. Here’s a breakdown to help you decide:
Do you prefer a simple, user-friendly investment app and earning interest on uninvested cash? If so, Trading 212 is your best bet. It’s designed for beginners and those who want a straightforward platform to invest in stocks, ETFs, and more, all with commission-free trading and attractive interest rates on uninvested cash.
Are you looking for more advanced trading tools with access to global markets and more complex products like options and futures? Then Interactive Brokers is the ideal choice. It offers a robust platform with a wide range of products, and access to 150 global markets, making it perfect for more experienced investors.
And remember, by signing up with the Trading 212 promo code IITW, you can receive a free fractional share worth up to £/€100.
Want to learn more about other brokers? Check out our in-depth broker reviews, comparison table, and BrokerMatch tool to find the best option for you!
