Trading 212 Ltd Exposed | Why Do We Consider Trading 212 a Scam? A Complete Analysis of Regulatory Facts, User Complaints, and Risk Scores

1. Brand Background and Promotion

Full company name : Trading 212 Ltd
Official website : https://www.trading212.com
Founded: 2004, headquartered in London, UK.

External publicity:

• Holds an FCA (Financial Conduct Authority) license (FRN 609146). 👉 Register on the FCA official website

• Regulated by FSC in Bulgaria.

• Registered as an MSB with FinCEN in the United States 👉 MSB Official Inquiry

• Offering zero-commission trading on stocks, CFDs, and ETFs .

• It focuses on simplified application and educational support "for novice investors".

📌The problem is :

• The FCA license is only valid for UK customers, and most overseas users are diverted to the Bulgarian subsidiary.

• FinCEN MSB is payment filing only and does not involve investor protection.

• The high leverage of CFD products has caused a large number of users to lose money.

II. Regulatory Truth and Loopholes

1. Limitations of FCA Regulation

• Trading 212 Ltd is registered with the FCA under number 609146. 👉 FCA registration details

• However, the FCA limits CFD leverage to 1:30 .

• However, the official website provides leverage higher than 1:30 to some overseas users, indicating that these accounts are not regulated by the FCA.

2. Bulgarian FSC

• There is lax regulation and a lack of investor compensation fund coverage.

• Customer rights protection channels are not smooth and complaints are difficult to handle.

3. Misleading MSB filing

• Trading 212 Ltd is registered with FinCEN as an MSB. 👉 FinCEN MSB Search

• But MSB is only registered for anti-money laundering and has nothing to do with investment safety.

• Investors cannot enjoy the protection of the U.S. CFTC/NFA.

📌Conclusion : Trading 212 creates a false sense of security by claiming to be "compliant with multiple licenses," but the vast majority of user funds are not actually protected.

3. Real users’ withdrawal and rights protection cases

Case 1: Trustpilot complaint

A user on Trustpilot said:

• “Depositing is easy, but withdrawing is always under review.”

• "Tried to withdraw £1,500 and it was delayed for over a month."

Case 2: FX110 Exposure

FX110 exposure platform users say:

• After depositing $3,000 and making a profit, the account was marked as "illegal trading".

• The platform directly freezes the account and only returns the principal.

Case 3: WikiFX User Feedback

WikiFX has a low risk rating, with multiple complaints including:

• “Withdrawal of profit funds was denied.”

• "The account was frozen and the customer service did not provide any explanation."

Case 4: Reddit Investor Experience

Reddit Forex Forum:

• Users claim that Trading 212 requires additional “tax certificates” to be submitted before withdrawals can be made.

• In the end, the funds still have not arrived.

📌Commonalities :

• Small withdrawals are normal, but large or profitable funds are often rejected.

• The platform froze funds due to “secondary review” and “illegal transactions”.

IV. Transaction Execution and Technical Issues

• Severe slippage : The spread widens to more than 40 points when the market fluctuates.

• Order delays : Stop-loss and take-profit orders are often delayed, resulting in losses for investors.

• Expert Advisor (EA) trading restrictions : High-frequency trading orders are rejected.

• Downtime issue : Users said they were unable to log in during key periods such as non-farm payrolls and CPI.

📌 These circumstances indicate that Trading 212 is suspected of backend manipulation .

5. Risks of Rebates and Agency Models

• Trading 212 expanded in Europe and the Middle East, relying on an agent rebate mechanism .

• The agent promoted "zero commission + guaranteed profit investment" on social media.

• There is a lack of transparency in the actual flow of funds, and customers’ losses mean the platform’s profits.

6. Third-party media and word of mouth

• WikiFX → Low risk rating, warning of withdrawal risks.

• FX110 → classifies it as a high-risk platform.

• TraderKnows → points out that its “multi-license compliance” is misleading.

• Trustpilot → A large number of negative reviews focus on “no deposits”.

7. Why we believe Trading 212 is a scam

1. Regulatory false packaging - FCA licenses only cover UK customers, and other customers are subject to weak or no regulation.

2. There are serious problems with cash withdrawals – large amounts of profitable funds are being refused payment.

3. Suspected backend manipulation - slippage, delays, and frequent downtime.

4. Risks of the rebate model - misleading investors through agents.

5. Unanimous negative reviews from third parties - has been named high-risk by multiple independent platforms.

👉Conclusion : Trading 212 meets the typical characteristics of a black platform scam.

8. Investment Advice and Risk Warning

• Don't be misled by "zero commission" marketing and "FCA licensed" appearances .

• MSB registration does not equal investment protection .

• Before investing, please be sure to:

• FCA official website

• ASIC official website
  Check the broker's qualifications.

• We recommend IG, CMC, Saxo, Pepperstone and other highly regulated brokerages.

IX. Risk Score (10-point scale + brief comment)

• Compliance : 4/10 — FCA present, but most customers unprotected.

• Fund Security : 2/10 — Large withdrawals carry a high risk.

• Transaction transparency : 3/10 — Execution quality is questionable.

• User reputation : 2/10 — Complaints are mainly about withdrawals and account suspensions.

• Customer Service : 4/10 – Slow responses and obvious buck-passing.

• Overall score : 3.0/10 — The risk of a scam is clear.