The Blog
Ms Millennial Money Reviews: Trading 212 community
Ms Millennial Money, Sarah Penney
As the world of investing continues to evolve, newcomers like Trading 212 are making waves in the investment platform landscape.
With around 2.5 million users across Europe and over 15 million app downloads, Trading 212 has quickly gained cross-generation popularity, attracting Gen Z, Millennials, and even Gen X. The platform’s success can be attributed to its low fees, alongside its prioritisation of social trading, which emphasises the importance of community engagement in today’s investing experience.
A Distinct Community Experience
In last weeks’ article, I examined eToro’s social trading offering. This week, I’m looking at Trading 212, and have clocked a number of differences.
While eToro has a more sophisticated overall feel, Trading 212 is more functional and straightforward—akin to comparing Primark to Banana Republic! The community within Trading 212 is more structured and easier to navigate but can feel overwhelming and ‘shouty’ due to the volume of discussions.
Both forums are predominantly male, which creates a community dynamic that has a slightly aggressive edge. Trading 212 has the addition of generational diversity, creating a lively environment, but also an additional layer of conflicted opinions.
One of my initial takeaways is that the sheer volume of chatter makes it challenging to identify which opinions are trustworthy, who to listen to and who may have an ulterior motive.
Unlike eToro, which highlights successful and well-followed traders with specific markers, Trading 212 places everyone on an equal footing. This approach contributes to a sense of democratisation but complicates the important process of cutting through the noise to find valuable insights.
Building a Vibrant Community
Despite these challenges, Trading 212 has cultivated one of the most dynamic investment communities out there. Users engage in lively discussions through a social media-style news feed, allowing them to follow market trends and connect with fellow traders. Conversations are clearly sign-posted, making it easy to identify topics of interest. For instance, a community focused on Tesla stock has nearly 400,000 members, exchanging insights about price predictions and trading strategies. This active interaction promotes a culture of knowledge sharing, which can benefit both novice and experienced investors.
The wealth of information is undoubtedly overwhelming, but variety of opinion is important for making informed investment decisions.
Unique Features: Pies and AutoInvest
Trading 212 offers innovative features designed to enhance user engagement and support successful investment strategies. Two key offerings—“Pies” and “AutoInvest”—help tackle challenges like portfolio diversification and contribution allocation.
A “Pie” is essentially a collection of assets, such as stocks and ETFs, which users can create or copy. This feature, similar to eToro’s Copy Trader, allows investors to replicate popular investment strategies. It’s a good way to create a diversified portfolio based on your investment objectives, eg income vs growth. One noteworthy Pie focuses on delivering regular dividends, attracting over 126,000 “copiers.”
The AutoInvest feature simplifies the investment process further by allowing users to customise and automate their investments based on their chosen Pies. This hands-off approach helps investors maintain diversified portfolios without constant market monitoring.
I prefer this approach to that of the eToro Copy Trader. It places more power in the hands of the investor, enabling you to copy a successful portfolio, but giving you the option of whether you want to follow changes made to the original “pie”. The information about the constituent parts of the “pie” is also more easily accessible.
A Growing Force in Retail Investing
Despite the inevitable risks and challenges that come with online forums, Trading 212 exemplifies the rising power of retail investors. The platform’s community has transformed into a hub that rivals many social media platforms. While there are some bad actors, there’s a feeling of experienced traders sharing their insights, creating a space where others can learn and grow. This collective intelligence challenges the traditional investment landscape, shifting power back to retail investors.
The Future of Investing
Ultimately, Trading 212 is more than just an investment platform; it’s a social ecosystem striving towards financial democracy and the collaborative spirit among retail investors contrasts with the competitive nature of institutional investing. By sharing their successes and strategies, individuals active in investment communities contribute to a more inclusive financial landscape.
As we look to the future, it’s fascinating to observe how retail investors are discovering the next ‘big thing. Collective intelligence and knowledge sharing is reshaping the retail investment landscape, creating more savvy and wealthy investors.
Comparing eToro and Trading 212
While eToro attracts a high volume of Millennials and Gen Z, who often come from more experienced investment backgrounds, Trading 212 appeals to a broader audience, including a significant number of both older and younger investors.
eToro’s clear indication of experienced and well-followed members of the community is a good initiative, helping users to navigate conversations, something that Trading 212 lacks. Nonetheless, both platforms offer valuable insights from intelligent users willing to share their knowledge.
Trading 212 is an exciting platform that effectively combines social interaction with investing. Its innovative features, such as Pies and AutoInvest, provide users with opportunities to diversify and actively manage their portfolios, as well as learn and grow. This, combined with its low fees make it stand out as a clear leader in the UK market.
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