Trading 212 raises € interest to 4% paid daily

[lisek]

@leigh262 This is correct, by they also earn interest on cash you hold with them and if you choose to - they may earn interest on you shares/etfs.

What he is referring two would is: how would you sell your assets if everyone else is also selling and nobody buys? This is what happens during market crashes - but it is not related to the broker.

 

[wrennelson143]

@fere222 This is a common pitfall. Regulated brokers do keep your money in segregated accounts that they can’t touch in case everything goes down.
Further more, the custodian of the shares is IBKR - if they have a problem - then everyone has.

 

[eastcascade]

@wrennelson143 But this is not money sitting idle in a segregated account. This is a bubble wrapped money market fund product. Your money is placed in an investment.

 

[wrennelson143]

@eastcascade In government bonds. Considered the second safest investment after cash.

 

[eastcascade]

@wrennelson143 Your money is placed in a money market fund that in-turn could invest in bonds or other forms of debt or interest bearing securities. Yeah the risk is low but the point is that it is an investment rather than a traditional bank deposit with interest and protection.

 

[jerseycindy5]

@fere222 T212 offers coverage of up to 1MM euros via Lloyds on top of the standard 20k everyone else does. This would expect to make it as much safe as any ordinary deposit, and for more money.

 

[wrennelson143]

@jerseycindy5 Yes, this is a very nice plus.

 

[futuredoctorofgod]

@jerseycindy5

T212 offers coverage of up to 1MM euros via Lloyds on top of the standard 20k everyone else does. This would expect to make it as much safe as any ordinary deposit, and for more money.

I don't think the account having interests (QMMF) has that... you're indeed at risk.

 

[slavonka_st]

@fere222 Why wouldn't you? Is this based on the criticism that they halted trading for GME during the short squeeze?

 

[lisek]

@slavonka_st I don't believe that's valid. T212 uses IBKR to execute orders and IBKR halted the trading.

 

[slavonka_st]

@lisek That's my point. I don't understand OP's fear that you wouldn't be able to withdraw the cash.

 

[lisek]

@slavonka_st It's not OP's fear, it's some random dude who also left a comment.

 

[oceanbreeze4evr]

@wrennelson143 My savings account has a 4.5% interest rate. State backed 3 month lock in period.

 

[ramonguitar]

@oceanbreeze4evr Through raisin? Or usd?

 

[favissa1]

@wrennelson143 Hungary currency pays 6%, knowing that I have automated order on my pies every 2 weeks, do you guys think that converting my stoped € to Hungary currency is worth it?

 

[wrennelson143]

@favissa1 I don’t know if anybody here can give you good advice on this.
Could be a good investment, but do note that you will be exposed to currency risk. (the value of HOF may decrease compared to EUR at the time you decide to convert back)

 

[neilp]

@wrennelson143 So everyone is expecting a market crash like for the last 10 years.... I am not willing to time the market I am not a guru. I am just buying little by little (DCA)

 

[wrennelson143]

@neilp That’s my strategy too.
Just this time I think I’ll keep some more cash available.

 

[oldmantook]

@wrennelson143 From what conclusion did you came that market crash is imminent? Previous indicators indeed they were saying that there's some possibility that to happened, but since then inflation is falling to the desirable lvls in US and in the EU. Thus will lead slowly to decrease the interest rates (it's already discussed, but not publicly confirmed that they will do it) and when that happens, the markets will rise even more.

That's why and in the recent days we had a small increase in the markets (because it's also psychology and fame).

What will happen? We must take everything with a grain of salt and consider that (a small, in my opinion) bull is more likely to happen than a bear right now.

 

[stephenk]

@oldmantook inflation is decreasing because we are going into deflation, you are just seeing the car slowing down before the crash