How does Trading 212 make money if trading is free?Trading 212 offers commission-free stock and ETF dealing but generates revenue through several other mechanisms. Understanding these helps you use the platform more cost-effectively and assess whether the model creates any conflicts of interest. Trading 212 revenue sources: currency conversion fees (0.15%), CFD spreads and overnight funding, interest on uninvested cash, and payment for order flow (in some markets). Trading 212 revenue streams explained
The CFD business: where most revenue comes fromThe most significant revenue stream for Trading 212 is its CFD (Contract for Difference) trading product. CFD traders pay the spread between buy and sell prices and pay overnight funding charges on leveraged positions. The platform discloses that 76% of retail CFD accounts lose money — losses on CFD positions are revenue for the platform in aggregate. Does Trading 212 sell your order flow?Payment for order flow (PFOF) — where brokers receive payment from market makers to route trades to them — is banned in the UK under FCA rules. Trading 212 does not use PFOF for UK clients. In the EU, PFOF rules differ and may apply. Your UK ISA and Invest account trades are not subject to PFOF. Is the commission-free model sustainable?Trading 212 has been profitable and has grown to over 3 million users. The CFD revenue and FX fee revenue are substantial enough to sustain the commission-free model on the stock and ETF side. The model is similar to Robinhood in the US and Freetrade in the UK, where the mass retail investor side is essentially a loss leader that builds scale for the more profitable products. How to minimise costs on Trading 212
Verdict Transparent and fair — mainly funded by CFDs and FX fees Trading 212 revenue model is reasonably transparent. The main cost to ISA investors is the 0.15% FX fee on non-GBP trades. The CFD product is profitable but risky — the vast majority of casual investors should stick to the commission-free ISA and Invest account. Frequently asked questionsDoes Trading 212 charge fees on an ISA? No platform fee and no dealing charges. The only cost for ISA investors is the 0.15% currency conversion fee on non-GBP-denominated stocks and ETFs. Is Trading 212 actually free? For UK and US share dealing and ETF investing, yes — no dealing commissions. The 0.15% FX charge applies to non-GBP purchases. CFD accounts have separate charges including spreads and overnight funding. Does Trading 212 make money from my losses? In the CFD product, yes — Trading 212 acts as principal on many CFD trades, meaning client losses are the platform gains. In the ISA and Invest account, this does not apply — Trading 212 routes trades to market makers. Why does Trading 212 offer free trading? The commission-free model builds a large user base that funds the platform through CFD revenue, FX fees, and interest income. It is a common model in the fintech broker industry. |
How Does Trading 212 Make Money? UK 2026
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