Regulatory obligations
As a broker regulated by the Federal Financial Supervisory Authority (BaFin) under the German Securities Trading Act (WpHG), we are obliged to follow strict rules to protect your money.
Client funds are held in accordance with WpHG §84, which requires us to:
- Maintain proper records and accounts to ensure client asset protection
- Keep client assets segregated from company assets
- Implement adequate organisational arrangements to minimise the risk of loss
Trading 212 secures your Invest account thanks to our commitment to asset segregation, regulatory compliance, and continuous monitoring.
Client money
Your money is in some of the largest banks in the world. It is kept separately and there are legally binding agreements that your money belongs only to you. Even if we go bankrupt, your money will be safe, accessible to you and cannot be used by us or third parties.
Client assets
Your shares will be held by Interactive Brokers and Bank of New York Mellon, two of the largest and most reputable financial institutions in the world. Your securities are always held separately and remain separate from our own assets. Even in the event of our insolvency, your investments will remain safe, accessible to you and cannot be used by us or third parties.
Protection schemes
Any uninvested cash is protected by the Entschädigungseinrichtung der Wertpapierhandelsunternehmen (EdW), the German Investor Protection Scheme. This scheme protects 90% of your eligible funds up to €20,000 per person. That means that if we fail to safeguard your money, they are protected up to €20,000 per person.
We hold your uninvested cash with German partner banks. Any uninvested cash in your Invest account is also protected up to €100,000 per person per partner bank. This means that, in the unlikely event that one of our partner banks were to fail, your money held with that bank would be protected up to €100,000. It's important to note that the limit applies to the total amount of money you hold at each specific bank, whether it's deposited by Trading 212, other providers, or by you directly. For transparency, the percentage of your funds held at each bank is available in the app.
The protection scheme applicable differs per partner bank:
- The Entschädigungseinrichtung Deutscher Banken GmbH (EdB) for German private banks (such as J.P. Morgan)
- The Deutscher Sparkassen- und Giroverband (DSGV) for savings banks (such as Sparkasse)
All compensation schemes operate under the supervision of BaFin. Learn more about how these protection schemes work here.
📄 Note
See more information on how your account is protected here.