This article will focus exclusively on Trading 212 Auto Invest & Pies, a new feature inside Trading 212 that allows you to invest simply and consistently!
New Trading 212 users can benefit from one free share of up to €100 by using our promo code: IITW.
Want to know what Trading212 Auto Invest & Pies is, how it works, the pros and cons, and who this feature is recommended to? We’ve got you covered!
Trading 212 AutoInvest and Pies Review
What is Trading 212 Auto Invest & Pies, and how does it work?
Trading 212 AutoInvest & Pies tries to solve two investment issues:
- Having a diversified portfolio with stocks and/or ETFs:
- Being able to do it automatically without having to ask yourself every month, “In which ETF/stock should I put my money in?”.
Your initial step is to build your Pie. You will be the one choosing which ETFs and/or stocks you should consider as a slide of your portfolio and the target weight in each one of them.
Each Pie can hold up to 100 securities, and you may have multiple pies. Do you want to pre-select a Pie? You can also do that!
Trading 212 Pies Dashboard
We believe you will be well suited with only one Pie to avoid excessive diversification (equal to lower expected returns). In our opinion, it will not add much value in the long run, but only confusion…
Since December 2020, Pies started to get social. On the app, you will notice a Pie Library, Pie Comments and Pie Copying, which means that you can copy other people’s Pies and interact with other community members. Just make sure to keep an eye on your Pie since it does not automatically adjust when the Original Pie changes.
Trading 212 Autoinvest & Pies Highlights
| 🗺️ Supported Countries | Worldwide |
| 💰 Fees | 0% |
| 🎮 Demo Account | Yes |
| 📈 Portfolio Rebalancing | Yes |
| 💵 Minimum Deposit | €/£1 |
| 📍 Investment Instruments |
Stocks and ETFs |
From this point, AutoInvest comes in: You have the option to invest in a Pie through a manual process or an automated one where you can customize your desired investment duration, deposit amount, and deposit schedule through a direct debit from your bank account (you may change this feature at any time).
Trading212 AutoInvest
After the money arrives at your Trading 212 account, it will automatically buy shares according to your pie’s targets. The beauty of AutoInvest is that your money will start working for you after setting up your investment goals!
Trading 212 AutoInvest and Pies Review
Trading 212 AutoInvest & Pies Pros and Cons
Pros
- Commission-free ETFs and stock trading
- New users get one free share worth up to €100 (promo code IITW)
- AutoInvest & Pies
- Set investment goals
- Rebalancing
- Top Tier Regulator
- Demo account
Cons
- A limited number of ETFs/stocks to choose from
- 0.15% of Foreign Exchange fee
Trading 212 AutoInvest and Pies Review
Do I easily follow the ongoing investment process?
Yes, you do! Another useful point is the display of your investments in the Pie. As you see in the image, the circle has different colours with different lengths and thicknesses. The length refers to your actual weight in a particular security. In contrast, the thickness tells you how much you are over or under-invested compared to your target weight (as time passes, some investments will outperform others).
Trading 212 Pies – Holdings
For instance, if you have a pre-defined target weight to Apple stocks of 20% and, due to asset appreciation, now it corresponds to 25% of your Pie, you will notice that the length will represent the 25%. The thickness will tell you by how much your current allocation deviates from your desired target. In this case, it would be 5%. Cool, isn’t it?
Trading 212 AutoInvest and Pies Review
How do I reorganize my portfolio to its original targets?
That’s pretty straightforward! Let’s imagine the following situation: you decide to invest in four securities with a target weight of 25% in each. After six months, the actual weights are 40%/30%/20%/10%. You believe it is time to sell the overweight assets and buy the underweighted ones.
Trading 212 solves this problem in just a single tap called “Rebalance”. It will automatically adjust your Pie to the desired target weights. Done. If you have assets trading in different areas, you may not see this effect immediately because some markets may be closed, but it should not take more than 24h to complete the rebalancing action.
Trading 212 Rebalancing
Trading 212 AutoInvest and Pies Review
Am I allowed to set goals for my retirement, vacation, or to buy a new car?
Yep! You may also set a goal for your investments to help you define a clear target.
Besides, Trading 212 will project how your investment value should evolve according to your pre-selected investment instruments and amounts. However, it is based on a historical basis, so it is never enough to stress that past performance is no guarantee of future results. A projection is still a projection. It feels great to see those numbers but, please, do not set too high expectations.
Trading 212 investment goals
Trading 212 AutoInvest and Pies Review
Tell me more about Pie Copying!
Sure! Inside the community tab, you will notice a Pie Library where you will find several thematic Pies such as Dividends, Growth, ARKK, EV & Green Energy and much more. From that point, you need to scroll down to choose from a pre-filled Pie where you may read other people’s comments and/or give your own insights!
Pie Copying kicks in when you find the most suitable one, and you select “Copy Pie”. It will instantly replicate that Pie for you!
Nonetheless, do not get stressed about future changes to the Pie because your Pie is not linked to the original one. The readjustment process is still done only by you. At the end of the day, you still have full control over your money.
Copying Pies in Trading 212 – Pie Library
Trading 212 AutoInvest and Pies Review
Do I really have no costs at all?
Good question! In terms of commissions, the answer is no. You do not pay commissions.
However, you will pay a 0.15% foreign exchange fee for buying assets in a currency different from your account. Example: You are based in France, so your account is in EUR. If you decide to invest in Apple (USD denominated), you will be charged 0.15% when buying and, again, when selling the stocks.
Besides, there are fees and taxes you will have to pay that are out of the control of Trading 212. Each exchange may charge a transaction fee. In the New York Stock Exchange (NYSE), a fee of $0.0000207 of the value of any sale order (not buy order) will be applied.
Some jurisdictions also charge you taxes on transactions. For instance, if you want to buy a stock listed on the London Stock Exchange (LSE), a Stamp Duty of 0.50% will be applied. However, there is no Stamp Duty charge applied to ETFs. Another example comes from France. The French Financial Transaction Tax (FFT) is 0.3%, and it is applied to the purchase (not sales) of shares of companies located in France with a market cap of over 1 billion.
Trading 212 AutoInvest and Pies Review
For whom is Trading 212 AutoInvest & Pies indicated?
AutoInvest & Pies is designed to make you participate in the world of wealth creation while not committing too much of your precious time!
By now, you are aware that investment is a crucial aspect of your life, but you still think that it is a complex matter to be managed only by you. Well, Trading 212 tells you: “Please choose your ETFs/stocks, and we will make sure you keep on track to achieve your financial goals”.
In our opinion, the best investment plan would be to use the AutoInvest feature. It is a strategy formerly known as Dollar Cost Averaging. The idea is to set a regular investment fixed amount and schedule (weekly, monthly,…) regardless of the market conditions. Some months you will be buying more shares (when prices are lower), and in others, you will buy fewer shares (when prices are higher). It is a great tool to neutralize short-term volatility in the broader equity market and makes you avoid the typical mistakes in trying to time the market (market timing).
Moreover, a Demo account is at your full disposal. So, if you are not comfortable yet investing your hardworking money, give it a try and see how your virtual money grows.
Finally, as part of Trading 212, this new feature is also authorized and regulated by the Financial Conduct Authority (FCA) and Bulgarian Financial Supervision Commission (FSC). The Financial Services Compensation Scheme covers all the Trading 212 AutoInvest & Pies accounts (FSCS).
Trading 212 AutoInvest and Pies Review
Conclusion
Did we answer all your doubts through our Trading 212 AutoInvest & Pies Review? Did it help you make your decision regarding opening an account in Trading 212? Let us know your feedback!
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
