I decided to make the switch out to Trading 212, due in significant part to how long it takes to get a response from Customer Services on anything (“we’ll get back to you in 1-2 days” - weeks more like it!).
Sent my transfer request 3 weeks ago and Freetrade have yet to even acknowledge it. Very frustrating but not regretting my decision
Just seen 212 have posted in their forum to advise that their SIPP will be free with only FX fees applicable. Pension and the word free sounds too good to be true!
There are some temporary downsides.
No stocks transfers in the beginning.
Also no employer contributions, although that could change
They must be killing it with the CFD Business. Almost all of there Products are free
81% loose money trading CFDs 
, its a profitable bussiness to be in
And the danger of ready access to your ISA etc to fund desperate margin calls should not be underestimated. It’s great that FT steers well clear of the racket that is CFDs, Spreadbetting etc. Great for the house, not for punters…
Nobody forcing the punters into risky trades.
It hints to an aggressive casino-like business model.
I wonder when we’ll start seeing some serious consolidation in this sector (i.e. mergers & acquisitions), I personally don’t think the free lunch will last much longer (2-3 years?), eat as much as you can while you can 
Absolutely not, but it’s a less than savoury business model, thriving on the gullible and inept. And all the easier to make mistakes if there’s a bucketload of risky products right there for the taking. As I say, I am happy that FT didn’t go down that route.
We all know that 212 makes money through CFDs, and many view this as a risk for ISA investors due to their business model. However, even if they decided to charge a small fee for ISA accounts, it would still be worthwhile considering the benefits offered. Such a measure could potentially mitigate risks to their CFD business if they foresee challenges ahead.
So they have all the conditions to find revenue through charges, like other brokers do, and still find many users willing to pay for it.
I’m likely to switch my Sipp to T212. I’m planning to buy some US and EU stocks, so it will be considerably cheaper for my use case.
0.15% vs 0.39% plus a £120-a-year fee makes it tricky for me to justify staying put. Even setting aside cost, I see few advantages to FT other than better execution on smaller UK shares.
As I see it, I’d be paying less for more: multi-currency accounts, pies, automatic dividend reinvestment, more stocks and markets, no transfer out fees, better website – the list goes on.
If I do switch, it’ll be tinged with a little sadness. I’m an investor and long-time client. But a much cheaper, arguably better Sipp offering elsewhere saps the value out my Plus subscription.
Zero chance in my opinion that 212 stays free forever, I give it 2 years max.
Had a nice little SIPP transfer offer through from Freetrade today too so looks like they are ramping up the marketing in this area.
I’ve been using trading 212 for 6 months and got to agree with most of your points.
Having a desktop version was very important for me. It’s all very pro so far which is also very important when your hard earned cash is at stake.
Guessing a lot of people want to short stocks on the CFD account which is fare enough but not my thing.
The order filling issue with Uk small caps is a problem.
They found a way to offer free trading accounts, maybe FT should think of a way of doing it as well…
You could be right but T212’s had more of less the same model for about six years now, and it’s proven to be profitable. I’ll save money in the interim then reassess if more fees are introduced,
It’s important to note that T212 is not free now and never will be. There’s a 0.15% forex mark-up, and a 0.7% card charge for those daft enough to incur it.
The broker also lends out shares. If I remember rightly, interest’s split evenly with the client. Though it’s not allowed in an Isa, I think it is in Sipps which may be a dealbreaker for some.
I started on etoro back in 2014 and they are still going. Lost$$$ with their cfd before I realised how much of a scam it is.
Absolutely see where you are coming from, a successful long term investment strategy will prioritise lower fees, I have my ISA this year with 212 due to the 1 percent cash back.
It’s an incredible time for the consumer as so many brokers are offering cash incentives we are actually being paid to use their services!
If something seems too good to be true???
People if you are looking for a trustworthy, conscientious company then choose Freetrade.
If you are looking for a casino company that caters to fast buck CFD’s that subsidises other parts of the business then on you go,BUT mark my words eventually they will turn to other parts of the business once you have been reeled in and the squeeze will begin!
I think it’s more worthwhile to warn people about the risks of CFDs rather than trying to denigrate a broker for their offerings. After all, they are regulated, and what they offer is part of the trading universe. From a business standpoint, it doesn’t seem like they are doing anything wrong. Besides, they are not forcing anyone to invest in CFDs to have an ISA. And obviously, we can’t doubt the integrity of the business based solely on an assumption without facts to support it.
More about how brokerage platforms make money, by Ramin Nakisa.
