I've noticed the buy price on T212 is slightly higher than elsewhere, and then increases again on settling the purchase. It feels like they're scalping
T212 user interface model doesn’t provide price assurance, you’re seeing live price that is ever changing, the price you see isn’t a locked in price, when you hit the buy button the time it takes the price likely will be slightly different. Some platforms use a quote model, you get a quoted offer and a short period (ie 20seconds) to decide to action the offer at the price, with this you get price assurance. I use T212 for small trades, but for bigger trades use a broker that uses a quote model for that live price assurance. You could also use limits which does away with all the pros/cons of the above.
Hi @duncan2858 platforms are often not market makers i.e. they don't make money from bid-offer spread. In fact, it's their job to ensure that when you trade you get "best execution" i.e. the best price by shopping around with a variety of market makers. With CFDs the platform does make money on bid-offer spread e.g. with platforms like IG that offer this service. Thanks, Ramin
@@Pensioncraft I am both surprised and reassured by your comment. I have assumed that this is a hidden charge being levied by commission free sites. Maybe you could highlight this in one of your future and no doubt excellent videos or podcasts.
I think that Trading212 profits from the bid/offer spread when the Execution Venue is OTC (Over The Counter: traded directly through the network of Trading212 from other users). HL has 'Price Improvement' sometimes beating the quoted price.
Very comprehensive video. I was about to write that you forgot payment to order flow but heard it 😂 robinhood made hundreds of millions in PTOF in 2021.
This is important. eToro will start charging 1usd per transaction. This is down to PFOF being banned in Europe. PFOF is also banned in UK. So what are the chances that all these free trading platforms will pass the increasing trading costs to customers?
It’s rip off from the retail investor or trader . There’s always a difference in the price moment between the send n fill order . More we trader more they make money out of this .
There are many ways that the companies mske money my pension provider serm to keep holding on to my contributions fir 20 days pending before it hits the fund.
@Pensioncraft it's my companies chosen provider and I can salary sacrifice into it so until I can do a partial transfer out under the terms they set out I'm stuck.
So, all these business models collapse when interest rates fall back to zero..... Enjoy the free lunch whilst it lasts. I recommend a plan to move to a fee paying platform well ahead of the classic 'bank run' on these unsustainable platforms.
I always thought stock lending was particularly janky. So I am long on say BT and my pension provider loans out my share to someone who is betting against me, how this is fiduciary to me I don’t understand
Equally, an institution that already owns BT shares can sell them. Are they ‘betting against you’ too? Maybe, but they are also helping to set the price of those shares. In the short sale case at least you benefit from the lending income.
Is it safer not to invest if you don’t know what you’re doing ? I’ve tried really hard to start my investing journey but I can’t get going , I now feel like I’ve taken on too much information to make a simple investing decision. I only want to invest so I can try to reduce my new mortgage from 19 years to 10. I’m 50 with £8000 to invest and can only put an additional £200 a month into my investment. What I have to work with is simple but choosing a starting point is very difficult 😞
is there an etf or fund i can invest in to utilise my 3000£/year capital gains allowance to prevent taxes? or another strategy? ive maxed out my ISA, SIIP and Personal savings allowance this year and i need to park some cash for a few months for a mortgage deposit. im i higher rate tax payer. cheers
You could buy some UK bonds/gilts, those are CGT exempt and a safe investment, which isn't a secondary consideration when you're saving for a mortgage deposit. Just time the maturity for when you're planing to use the money, that way you don't have to worry about price fluctuations. In your case I'd buy something that has low interest, because interest earned on gilts isn't tax free. Those bonds should be selling below face value, so because of the low interest most of your yield would be capital gains.
To be even handed you might want to avoid anything Saudi Omani Quatari Iranian Syrian etc as they all have a hand in this Hamas are funded from many directions and it does rather take two to tango.
@@anthonybrown4874 understanding 20:49 right and wrong is important. Zionists settlers from Europe and across the world been given Palestinians land by colonial force US and UK. Look at the Genocide being committed in Gaza. Visit Gaza and West Bank. I wish you were a Palestinian.
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I've noticed the buy price on T212 is slightly higher than elsewhere, and then increases again on settling the purchase. It feels like they're scalping
I also noticed the prices were higher buying... I closed the account not long after opening.
Ramin is sponsored by T212 so we can't talk about that. Has he sold out?
Yeah, you certainly never get inside the spread for U.K. stocks on T212. Why I always use other traditional brokers for U.K. stuff.
You're not allowed to inflate the spread for profit in the UK or EU.
T212 user interface model doesn’t provide price assurance, you’re seeing live price that is ever changing, the price you see isn’t a locked in price, when you hit the buy button the time it takes the price likely will be slightly different. Some platforms use a quote model, you get a quoted offer and a short period (ie 20seconds) to decide to action the offer at the price, with this you get price assurance. I use T212 for small trades, but for bigger trades use a broker that uses a quote model for that live price assurance.
You could also use limits which does away with all the pros/cons of the above.
What about the buy / sell spread?
Hi @duncan2858 platforms are often not market makers i.e. they don't make money from bid-offer spread. In fact, it's their job to ensure that when you trade you get "best execution" i.e. the best price by shopping around with a variety of market makers. With CFDs the platform does make money on bid-offer spread e.g. with platforms like IG that offer this service. Thanks, Ramin
@@Pensioncraft I am both surprised and reassured by your comment. I have assumed that this is a hidden charge being levied by commission free sites. Maybe you could highlight this in one of your future and no doubt excellent videos or podcasts.
I think that Trading212 profits from the bid/offer spread when the Execution Venue is OTC (Over The Counter: traded directly through the network of Trading212 from other users). HL has 'Price Improvement' sometimes beating the quoted price.
Very interesting. The debate continues…
good breakdown of HL costs and revenues. Thanks
Glad it was helpful @Vijinger10
Interesting video, great to see your channel approaching 200k subscribers :)
Thanks so much @mateuszgoab8391
Does anyone know when IE going to allow pension transfers. It’s been saying coming soon for months now.
Most are buying usd, so they have exchanged trading commission fees for much higher fx fees.
If it's free, you're the product.
They buy shares at over market price and sell them at below market price and pocket the difference.
Very comprehensive video. I was about to write that you forgot payment to order flow but heard it 😂 robinhood made hundreds of millions in PTOF in 2021.
Thank you @sohu86x
@@Pensioncraft Thank you! I've been listening to your stuff for years. Love it.
Do we know if Trading 212 uses payment order flows for EU clients since they are clients of the Cyprus entity, not UK?
I am interested in that too. Trading 212 is completely free if you invest in ETFs' only.
This is important. eToro will start charging 1usd per transaction. This is down to PFOF being banned in Europe. PFOF is also banned in UK. So what are the chances that all these free trading platforms will pass the increasing trading costs to customers?
Super useful as usual
Glad you think so @venil82
Am I right in thinking that csh2 is taxed at capital gains rate, and not dividend/income tax rate, as it just simply grows in value?
CSH2 is synthteic and is invested in swaps. There is no bank interest or income.
@@patchpeek so the answer is yes? It's capital gains?
Excellent informative video, thank you.
Glad you enjoyed it @shellyperera2010
It’s rip off from the retail investor or trader . There’s always a difference in the price moment between the send n fill order . More we trader more they make money out of this .
There are many ways that the companies mske money my pension provider serm to keep holding on to my contributions fir 20 days pending before it hits the fund.
Hi @anthonybrown4874 that does seem excessive, but there are lots of pension providers so might be worth looking at alternatives. Thanks, Ramin.
@Pensioncraft it's my companies chosen provider and I can salary sacrifice into it so until I can do a partial transfer out under the terms they set out I'm stuck.
So, all these business models collapse when interest rates fall back to zero..... Enjoy the free lunch whilst it lasts. I recommend a plan to move to a fee paying platform well ahead of the classic 'bank run' on these unsustainable platforms.
Why would interest rates fall back to 0? In any case, all of these platforms existed through 0% already.
I always thought stock lending was particularly janky. So I am long on say BT and my pension provider loans out my share to someone who is betting against me, how this is fiduciary to me I don’t understand
Equally, an institution that already owns BT shares can sell them. Are they ‘betting against you’ too? Maybe, but they are also helping to set the price of those shares. In the short sale case at least you benefit from the lending income.
As far as i know stock lending cannot be done in a SIPP either
Provided they don’t change and start charging for holding on to the shares I don’t care how they are free so long as they stay free.
HL has Massive overheads , can see why private equity want it.
True @coderider3022 although it's margin is pretty high (gross margin of around 70%, operating margin of around 50%). Thanks, Ramin.
Is it safer not to invest if you don’t know what you’re doing ? I’ve tried really hard to start my investing journey but I can’t get going , I now feel like I’ve taken on too much information to make a simple investing decision. I only want to invest so I can try to reduce my new mortgage from 19 years to 10. I’m 50 with £8000 to invest and can only put an additional £200 a month into my investment. What I have to work with is simple but choosing a starting point is very difficult 😞
is there an etf or fund i can invest in to utilise my 3000£/year capital gains allowance to prevent taxes? or another strategy? ive maxed out my ISA, SIIP and Personal savings allowance this year and i need to park some cash for a few months for a mortgage deposit. im i higher rate tax payer. cheers
You could buy some UK bonds/gilts, those are CGT exempt and a safe investment, which isn't a secondary consideration when you're saving for a mortgage deposit. Just time the maturity for when you're planing to use the money, that way you don't have to worry about price fluctuations.
In your case I'd buy something that has low interest, because interest earned on gilts isn't tax free. Those bonds should be selling below face value, so because of the low interest most of your yield would be capital gains.
Hi @MrXplanepilot - what @Ratgibbon said! Thanks, Ramin
Sorry if I’ve missed something, but why are charges for funds so much more than for shares and etfs?
There is No FREE Taco
So it's "Flash Boys?"
***
Since the recent ethnic cleansing in Gaza I have avoided Israeli commission-free platforms eToro and Plus 500
Lol
I could never get a good signal around the pyramids, anyway,
To be even handed you might want to avoid anything Saudi Omani Quatari Iranian Syrian etc as they all have a hand in this Hamas are funded from many directions and it does rather take two to tango.
@@darrenjamrock2677 no one cares
@@anthonybrown4874 understanding 20:49 right and wrong is important.
Zionists settlers from Europe and across the world been given Palestinians land by colonial force US and UK.
Look at the Genocide being committed in Gaza.
Visit Gaza and West Bank. I wish you were a Palestinian.
Really good explanation video @ramin
Hi @jongreenwood3029 thank you! Ramin