Is Trading 212 FSCS Protected? – 2025 Guide to Client Safety
Thomas Drury
Co-Founder
Thomas is an experienced financial trader in leverage instruments, crypto and general investing. He has over a decade experience in finance and holds Chartered Status in the financial industry, Thomas’s speciality is trading CFDs, Forex and Day Trading. His crypto portfolio is heavily weighted towards BTC and Eth, but enjoys trading low cap crypto’s with higher volatility. Thomas’s favourite trading strategy is break out Trading.
“Our commitment at The Investors Centre is unwavering. We strive to provide clear, actionable advice that empowers you to achieve financial success. Our vision is a future where anyone can invest confidently and wisely.”
Dom Farnell
Co-Founder
Dom is an experienced retail investor, learning his craft in what he likes to call the “hard way”. Through many of these lesson’s he has crafted himself a sound investment strategy that has enabled him to make investing into a business not just a hobby. He wanted to create The Investors Centre to be able to use these lessons and help other people establish them selves in the world of investing.
“Financial clarity and integrity are the cornerstones of everything we do. We’re here to ensure that your investment journey is built on a solid financial understanding and a sound strategic foundation.”
Table of Contents
Disclaimer
How We Test
Wondering if your money is truly safe with Trading 212? This guide breaks down how FSCS protection works, which Trading 212 accounts qualify, and what risks remain, so you can trade with more confidence knowing exactly how your funds are secured.
Quick Answer: Is Trading 212 FSCS Protected?
Yes — Trading 212 is covered by the FSCS for up to £85,000, protecting client cash held in segregated accounts if the firm fails. However, FSCS does not cover investment losses, so always understand market risks and Trading 212’s custody structure.
Trading 212 Overview
- Minimum Deposit: £1 (via bank transfer or card)
- Invest in stocks, ETFs, and forex with zero commission*
- FCA regulated and trusted by over 2 million users
- Intuitive mobile and web platforms with real-time data
- Perfect for self-directed investors looking to build confidence and portfolios without high barriers or complexity
*Other fees may apply. See terms and fees.
Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.
What is the FSCS & How Does It Protect You?
The FSCS is the UK’s financial safety net, compensating eligible customers if authorised firms like brokers or banks fail. It’s designed to protect your cash deposits and certain investments up to £85,000, providing critical peace of mind for UK investors.
What is the Financial Services Compensation Scheme (FSCS)?
The FSCS is an independent UK scheme that protects consumers when financial firms collapse. If Trading 212 were to fail, the FSCS can cover up to £85,000 of eligible client money, helping safeguard your cash from insolvency-related losses.
How Does FSCS Compare to Other Protection Schemes?
Unlike private insurance, the FSCS is a government-backed statutory scheme. It differs from investor protection rules in the EU or US SIPC by focusing on UK consumers and offering fixed cash limits, making it crucial to know exactly what’s covered.
Who Regulates Trading Platforms Like Trading 212?
Trading 212 is regulated by the UK’s Financial Conduct Authority (FCA), which enforces strict rules on client fund segregation, reporting, and conduct. This oversight ensures platforms meet high standards, reducing the risk of fraud or mismanagement that triggers FSCS claims.
Is My Trading 212 Account Covered by FSCS?
Trading 212 clients benefit from FSCS protection on cash balances up to £85,000 if the firm collapses. However, coverage varies by account type, and investment losses due to market moves are never insured. Knowing which accounts qualify helps secure your capital.
Which Trading 212 Accounts Qualify for FSCS Protection?
FSCS protection applies to Trading 212’s ISA and Invest accounts for cash held in client money accounts. CFD positions generally don’t qualify under FSCS, as losses there stem from trading performance, not broker insolvency. Always check exact terms in Trading 212 disclosures.
What Happens If Trading 212 Goes Bust?
If Trading 212 fails financially, the FSCS may compensate you for eligible cash up to £85,000. Meanwhile, your stocks are typically held by custodians, separate from Trading 212’s own funds, helping protect your assets during insolvency proceedings beyond the FSCS limit.
Are Client Funds Safe with Trading 212?
Trading 212 uses strict measures to protect client money. Funds are held in segregated bank accounts, kept separate from the company’s own finances. Combined with FCA oversight, this greatly reduces the risk of your cash being misused if Trading 212 encounters problems.
How Does Trading 212 Safeguard Client Money?
Client deposits are placed in segregated accounts at reputable banks, meaning Trading 212 cannot use these funds for its own operations. This structure ensures your money is legally ring-fenced and returned to you if the broker becomes insolvent.
What Other Security Measures Does It Use?
Trading 212 also performs daily reconciliation of client balances, complies with strict FCA reporting, and uses multi-layered IT security to protect accounts. While these don’t prevent market losses, they help safeguard your capital from broker mismanagement or fraud.
What Does FSCS Not Cover on Trading 212?
The FSCS does not protect you from losing money due to poor trades or market downturns. It also generally doesn’t cover CFD losses, since these result from leverage and volatility, not broker failure. Understanding these gaps is key to managing your risk.
Are CFD or Share Trading Accounts Protected?
FSCS only steps in if Trading 212 fails as a firm, not if your investments lose value. For CFDs, losses from price swings or leverage aren’t insured. Shareholdings may be held with custodians, adding a separate layer of safety beyond FSCS coverage.
What Risks Remain Even With FSCS?
FSCS only covers eligible cash up to £85,000. If your balance exceeds that, or if your investments drop due to market volatility, you bear those risks. This makes it vital to diversify and consider additional security steps like stop-losses.
How Can You Check If FSCS Covers Your Trading 212 Account?
It’s smart to confirm your FSCS eligibility before problems ever arise. This ensures you know exactly how much protection applies to your funds if Trading 212 fails, and what additional safeguards or diversification steps you might need to take.
Simple Steps to Verify Your Protection
Check Trading 212’s FCA registration on the Financial Services Register. Review your account type — ISA and Invest cash are typically protected under FSCS rules. Look for statements in Trading 212’s client agreements outlining how segregated funds qualify for compensation.
What To Do If You’re Not Covered
If you hold large balances or accounts outside FSCS scope, diversify by using multiple brokers or moving funds to a UK bank account. Consider additional safeguards like using limit orders or non-custodial investments that don’t rely on broker solvency.
Pros & Cons of FSCS Protection with Trading 212
- FSCS covers cash up to £85,000 if Trading 212 fails
- Funds held in segregated accounts with top-tier banks
- Overseen by the FCA, adding trust
- Doesn’t protect investment losses from markets or leverage
- Coverage limit may not fully cover large accounts
- Some complex instruments (like CFDs) generally excluded
Final Thoughts: Is Trading 212 Safe for Your Money?
Trading 212 is regulated by the FCA, keeps client money segregated, and offers FSCS protection on eligible cash. While that safeguards you from broker failure, market losses remain your risk. Combine Trading 212’s protections with smart security practices and diversification to trade confidently.
Commission-free Investing for Everyone
- Invest as little as £1
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Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.
FAQs
Is my Trading 212 cash FSCS protected?
Yes. Client money in Trading 212’s Invest or ISA accounts is covered by FSCS up to £85,000 if the broker collapses, provided funds are held in eligible segregated accounts.
Does FSCS cover CFD losses on Trading 212?
No. The FSCS only steps in if Trading 212 itself fails. Losses on CFDs or share prices dropping due to market moves aren’t protected by compensation schemes.
Can Trading 212 freeze my account?
Yes. Like all regulated brokers, Trading 212 can freeze or restrict accounts for regulatory checks, suspicious activity, or incomplete verification. Keeping ID documents updated reduces the chance of disruptions.
Is Trading 212 safer than unregulated brokers?
Absolutely. Trading 212’s FCA licence means strict client fund rules, regular audits, and FSCS fallback if the firm goes under. Unregulated brokers lack these protections, putting your money at far higher risk.
