Trading 212 changing the terms and conditions - Is Securities lending safe?

Trading 212 have recently changed the Terms and Conditions for Trading 212 users to allow their investments to be lent out to other brokers.

If you're looking to sign up to Trading 212 here's a link. If you sign up through this you get a free share!

Is this safe or are Trading 212 putting our money at risk for a little bit of cash?

I'll be taking you through what securities lending is and discussing the risks.

As always, I'm not a financial advisor, none of what I say in videos should be considered financial advice.

For enquiries and if you want to ask a question email:

Follow this link to get to the discord chat if you have a question for our community of UK investors:

I also have Coinbase if you're looking to get into Bitcoin:

I often get questions about the video kit I use so I've made it easy to find.
Camera:

Monitor:

Microphone:

Lighting:

Editing:

Interesting reads:

This can also be found as an audio book on audible. I prefer audio books so I signed up for their free trial using this link:

Investing in shares for dummies:

If you would like one of the T-shirts, for whatever reason, you can find them at my spreadshirt shop:

[ricky]

Vanguard for ETFs and T212 for individual stocks. That’s my setup.

[johnhess]

I reckon i’m gonna switch to Vanguard next tax year, after using trading 212 since april. I think the ‘ugly’ layout of vanguard discourages overtrading. Colorful UI of 212 makes it feel like a game, I just wanna toss in money each week into diversified funds and check back on it in 10 years.

[mainlineto]

I can see how T212 thinks the autoinvest feature will help with this.

First autoinvest means passive investors don't even need to log on to regularly top up their accounts/check their accounts, so they are less likely to sell existing stocks.

Second, the pie feature will mean people are likely to make their picks and stick with them over the longterm, particularly if they are hooked in by the estimated earnings over their goal period. All that means more stability within portfolios and so more potential in securities selling.

My take on this is that I will put my money into T212 up to £85, 000 - then I'll go with H&L. I know the FSCS is essentially an insurance policy against anything that could possibly go wrong with T212 up to £85k.

[seanwalsh]

Thanks for this Paul! Great video, very informative. Really do appreciate the time you put in to these.
Thanks 👍

[thelevelupcommunity]

Quality video mate, as long as I don't see shares missing out my account and I get paid my dividends, trading 212 can do what they like, tbh I don't even mind paying them couple quid a month, everyones got to make there money.. if It means my money being even safer I don't mind.

[EuanCopeland]

Trading 212 is pretty safe up to £85k for your money as long as your don’t use the CFD part and then that’s your own fault 😂

[joymae]

Great topic Paul! I have heard about commission-free mobile apps, but in my opinion I feel safest trading with the size of my portfolio on a desktop. Call me old?

[adamyt]

i might somehow max my isa out in trading 212 by April 6 next year. Any advice? (know you’ve history with this specifically). Thanks for continuing to assess their risk etc. - at what point would you maybe move all your stocks to one holding account or something? Or would we lose ISA benefits? Lotta questions, sorry hahah :)

[garyreilly]

where do you find the T212 community forum?

[harrypenman]

Thanks for the info! However please can you lock your cameras autofocus. The af hunting was very painful for the first 4 minutes!!

[mothballjim]

Another great video Stuart. Thanks. Also loving the trim 👍🏻

[shenqu]

been waiting on you to do this one.... glad I don't need to worry about it anymore

[undercover_secret_agent]

The biggest reason for me is the FCA authorisation and garantee of £85k, that's the reason I feel comfortable and safe using the app.

[zimmro]

According to the help desk at 212 they say they keep all the income from lending.

[steffanbull]

Thanks for doing the donkey work on trade 212, great to know someones got at least half an eye on them

[cranna]

Awesome video. I'm new to trading and trading 212. Can I ask a question about the platform, My total returns are not reflected in my account balance? I'm investing in their ISA and making small gains but when I check my balance it seems they've deducted something and the two do not match. Any feed back welcome.

[Travelandlive]

How does it come that i do not have a ISA account option available? Is it just me or someone else having this "issue"?

[sangEta]

ALL shares held in a Nomimee Account, belong to your broker, not you! The people where scammed out of their share ownership when paper.certificates went electronic. Theres no reason why they couldn't be held in your own name electronically!

[Zepsoe]

Well thank you again for explaining and making it much more simpler.👌

[ThePinkArcher]

Could someone tell me if 212 is just going through another brokerage what is the benefit of using them over just going with interactive broker and cut out the middle man?