XTB vs Trading 212: Compared for fees, safety, products, & more
Both XTB and Trading 212 have heavily invested in the European market through advertising on social media and traditional media. So, which one is better? We are users of both platforms, and what we’ve noticed is that each has its unique features, advantages, and disadvantages. In this article, we will share our experience with both.
The goal is to help you understand which of these two platforms might be more suitable for you, depending on your needs. We will explore in detail everything that XTB and Trading 212 have to offer.
Summary:
- XTB: Best for Forex and CFDs, but also suitable for investing in stocks and ETFs without commissions (up to €100,000 in monthly volume).
- Trading 212: Best for investing in stocks and ETFs without commissions (no limit) and earning interest on uninvested cash and borrowed shares.
We feel comfortable investing with either broker, as their offerings and level of regulatory security are very similar.
XTB is more suitable for those looking to invest in CFDs, Forex, and benefit from commission-free stocks and ETFs. XTB is a publicly listed company.
On the other hand, Trading 212 is the best for investing in stocks and ETFs without commissions (no limit) and earning interest on uninvested cash and borrowed shares. We also find Trading 212's app to be much more intuitive than XTB's, making it ideal for beginners.
Additionally, both offer a debit card. With XTB, it's a virtual card (e-wallet), while Trading 212 offers both virtual and physical cards with no currency conversion fees (ideal for traveling to countries with currencies other than the Euro).
Comparison table
XTB - overview
Founded in 2002, XTB is one of the major names in the brokerage industry, with a broad global reach. It is regulated by the Financial Conduct Authority (FCA) and other key regulatory bodies in Europe. XTB is publicly listed on the Warsaw Stock Exchange.
You can invest via the xStation 5 and xStation Mobile platforms across a range of products such as stocks, ETFs, and CFDs on stocks, ETFs, Forex, indices, commodities, and cryptocurrencies.
XTB offers 0% commission on stocks and ETFs for up to €100,000 in monthly volume (then 0.20% with a minimum of €10), as well as interest on uninvested funds (in EUR and USD). There’s also a 0.50% currency conversion fee when buying assets in currencies other than EUR.
Want to know more? Check our XTB review.
XTB pros and cons
Pros
- Commission-free stock and ETF trading
- Customizable trading platform (charts and workspace)
- Low Forex spreads
- Demo account available
- Only €1 minimum deposit to open an account
- Educational materials
- Reputable regulatory bodies
- Branches and offices in multiple European countries
Cons
- Trading platform can be complex for beginners
- High spreads on stock CFDs
- Limited product portfolio (no bonds, options, etc.)
- Inactivity fee (€10/month after more than 1 year without activity and no deposit in the last 90 days)
- App is not as intuitive as Trading 212’s
Trading 212 - overview
Founded in 2003, Trading 212 was one of the pioneers in offering low commissions and simplified access to financial markets for European investors. It is headquartered in the UK and regulated by several financial authorities, such as the Financial Conduct Authority (FCA).
Trading 212 is also registered in some European countries under a “freedom to provide services” regime (for example, some EU investors may see it registered locally through “Trading 212 Markets Ltd”).
Trading 212 became popular for its simple and user-friendly investment platform (often described as more streamlined than XTB’s) and the ability to start investing with just €1.
Trading 212 pros and cons
Pros
- Commission-free stock and ETF trading (other fees may apply; check terms and fees)
- AutoInvest & Pies feature for automated investing (XTB has a similar feature)
- Free share bonus for new users
- Fast and easy account opening process
- Demo account available
- Offers a fractional share up to €100 in value to new clients
- High interest on uninvested funds
- Interest on lent shares
- Modern, user-friendly app
Cons
- Limited product portfolio (no options, bonds, mutual funds, or futures)
- 0.15% currency conversion fee
- Lacks robust fundamental analysis tools
- As a private company, it’s not subject to the same level of scrutiny and transparency as XTB
Regulation and security
Both are regulated in Europe and provide investor compensation schemes, but XTB offers greater transparency because it’s listed on the Warsaw Stock Exchange.
If you want to know more, check our article analyzing Trading 212's safety.
Financial instruments
Trading 212 offers a larger range of stocks, but lags behind in other asset categories.
Both brokers lack more complex products like bonds or options, making them an excellent choice for beginners and buy-and-hold investors but less so for advanced traders seeking more sophisticated instruments.
Plataformas de investimento
XTB’s xStation 5 offers more advanced trading and charting tools, while Trading 212’s platform is simpler, more intuitive, and ideal for beginners.
Commissions
*Up to €100,000 monthly trading volume. Above that, a 0.20% fee applies (min. €10).
Both XTB and Trading 212 are extremely competitive by offering commission-free stock and ETF trades.
Trading 212 might be more cost-effective due to its lower currency conversion fee (especially relevant if you buy U.S. stocks).
Customer Support
XTB
XTB’s customer support in Europe is often highlighted as one of its strong points. It’s available in multiple European languages and offers several channels of communication:
- Live Chat: Fast and effective for quick questions.
- Telephone: Extended hours, useful for more complex issues.
- Email: Ideal for less urgent matters.
XTB also stands out for providing dedicated account managers and specialized technical support, especially useful for traders on the xStation 5 platform. Overall, user feedback is generally positive, emphasizing quick response times and solid technical knowledge.
Trading 212
Trading 212’s customer support in Europe is somewhat more limited compared to XTB. Communication mainly occurs via:
- Email: Response times vary depending on the volume of inquiries.
- Chat: Available on the platform.
While functional for basic queries, it does not offer phone support, which some users may prefer for more direct interaction. Complex technical issues might not be resolved as quickly or thoroughly as desired.
If top-tier customer support is a priority, XTB tends to be the more reliable choice in the European market.
What is “earning interest on lent shares” in Trading 212?
Whenever you invest in stocks, you can opt to allow them to be lent out, generating additional income for you until you decide to sell.
How does it work?
After activating this feature, Trading 212 automatically lends your shares to anyone who needs them (often for short-selling). The resulting income is split 50:50 between you and Trading 212. Meanwhile, you continue to receive dividends on these shares (they’re still yours).
All loans are secured by U.S. Treasury bills worth at least 102% of the total share value, adjusted daily. This means the collateral will exceed the borrowed amount.
What are the risks?
- The borrower might be unable to return the shares (the collateral then comes into play).
- Trading 212 and other entities involved could fail simultaneously (in which case the investor compensation scheme—up to €20,000—would apply).
Other features
- You earn interest daily.
- No restrictions if you decide to sell your shares.
- You can see which shares are lent and the associated interest rates at any time.
- You lose voting rights on lent shares.
- No commitments (you can deactivate this feature whenever you like).
Which one should you choose?
Ultimately, the choice between XTB and Trading 212 depends on your specific needs. Both brokers have unique selling points:
- XTB stands out for commission-free stock and ETF trading (up to €100,000 in monthly volume), interest on uninvested funds, advanced analysis tools in its xStation 5 platform, and more comprehensive customer support (including telephone support). Being publicly listed also brings added transparency.
- Trading 212 is known for its simplicity and user-friendly platform—perfect for beginners. It also offers unlimited commission-free stock and ETF investing, higher interest on uninvested funds, and the opportunity to earn extra income by lending out your shares.
If possible, trying both platforms can be a smart way to see which one better fits your investment style and objectives!
