Trading 212 SIPP: The Cheapest Pension in the UK?

Risk warning: Capital at risk. Pension rules apply. Tax treatment depends on your individual circumstances and may change in the future. This article discusses the Trading 212 SIPP account. We do not recommend CFD trading.

It is 6 April 2026. New tax year. And for the first time, you can put your Trading 212 SIPP contributions into the same platform you already use for your ISA.

We have been waiting years for this. Trading 212 first signalled plans for a SIPP back in 2020, but the FCA took until February 2026 to grant approval. Now the product is live in the app, locked behind a waitlist, with early users already funding their pensions. If the feature set holds at general release, this could be the cheapest SIPP available to UK investors.

Here is what it offers, how the fees compare, and what to watch out for.

Contents

• Why a Cheap SIPP Matters So Much
• What You Get
• The Fee Structure
• Interest on Uninvested Cash
• How It Compares to Competitors
• Transferring an Existing Pension
• What You Cannot Do Yet
• UK Pension Allowances for 2026/27
• Should You Join the Waitlist?
• Frequently Asked Questions

Why a Cheap SIPP Matters So Much

Pensions are the single most tax-efficient way to invest in the UK. You get tax relief on the way in, tax-free growth inside the wrapper, and 25% tax-free when you take money out. No ISA, no crypto wrapper, nothing else comes close.

The problem has always been cost. Traditional SIPP providers charge percentage-based platform fees, dealing fees per trade, and sometimes exit fees on top. Put £500 a month into a handful of index funds and those fees compound into tens of thousands of pounds over a working lifetime. On a 0.35% platform charging £11.95 per trade, a 30-year-old contributing until 60 might hand over £15,000-£20,000 in platform costs alone - money that could have been compounding in the market.

Trading 212 built its name on stripping out unnecessary fees. Zero commission, zero platform fees, interest on your idle cash. Applying that model to pensions was the obvious next step - and they have gone further than anyone expected. No platform fee. No trustee fee. No dealing fee. Just the 0.15% FX charge if you buy non-GBP investments.

What You Get

The Trading 212 SIPP gives you access to the same investment universe as the ISA and Invest accounts:

• Over 13,000 stocks and ETFs - UK-listed, US-listed, and major European exchanges
• Commission-free trading - No dealing fee on any trade, just like the ISA
• Fractional shares - Invest any amount into any holding, even if a single share costs hundreds of pounds
• Pies and AutoInvest - Build a target allocation, set a schedule, and let the platform invest automatically each month
• Interest on uninvested cash - Your cash earns a competitive rate while you decide where to put it

If you already use Trading 212 for your ISA, the SIPP works the same way. Same app, same interface, same investment tools. The only difference is the tax wrapper.

For passive investors running a simple global index fund strategy, this means you can now hold your pension and your ISA on the same platform with the same low-cost ETFs - and pay almost nothing for the privilege.

The Fee Structure

This is the headline. Here is what the Trading 212 SIPP costs:

Trading 212 received its own FCA authorisation to operate a personal pension scheme in February 2026. They run the SIPP directly - no third-party trustee skimming a fee off the top. A Trading 212 staff member confirmed on the community forum: no management fees, no transfer fees, no exit fees. The only transaction cost is the 0.15% FX conversion fee when you buy non-GBP investments.

If you are buying UK-listed global ETFs like VWRP or VHVG (denominated in GBP), you pay literally nothing.

That changes everything as your pension grows. Compare two scenarios on a £200,000 pot:

• Hargreaves Lansdown (0.35%): £700/year in platform fees
• Trading 212: £0/year

That is £700 a year back in your pocket. Over 20 years of continued growth, the fee gap alone could be worth tens of thousands. The bigger your pension gets, the more dramatic the saving. This is the opposite of platforms like Hargreaves Lansdown or Vanguard, where costs scale with your portfolio size.

Note: the SIPP is still in beta. Trading 212 could introduce fees before or at general release. But based on their track record with the ISA and Invest accounts - which have remained commission-free since launch - there is no indication they plan to.

Interest on Uninvested Cash

One of Trading 212's best features carries over to the SIPP: interest on uninvested cash. At the time of writing, GBP cash earns around 3.85% AER (variable), calculated daily and paid automatically.

Pension contributions often arrive in lumps - a monthly direct debit, a one-off top-up at the end of the tax year, or a transfer that takes weeks to settle. On most platforms, that cash sits earning nothing while you decide where to put it. On Trading 212, it earns interest from day one.

This is not a reason to hold large cash balances inside a pension. You should be invested in equities for the growth. But if you are drip-feeding £500 a month and it takes a few days to decide on your next purchase, at least that cash is not sitting dead.

How It Compares to Competitors

Here is how the Trading 212 SIPP stacks up against the main UK alternatives on a £100,000 pension pot:

A few things stand out:

InvestEngine is the closest competitor - also zero platform fee, also zero commission. But InvestEngine only offers ETFs, no individual stocks. If all you want is a handful of index ETFs, either platform works. But if you want the flexibility to hold individual shares alongside your ETFs, Trading 212 wins. And Trading 212 pays interest on uninvested cash, which InvestEngine does not.

Interactive Investor is competitive on a flat-fee basis, but you pay per trade. If you are making regular monthly investments across several holdings, those dealing fees add up.

Vanguard is excellent for pure passive investors, but you are restricted to Vanguard's own fund range. No individual stocks, no third-party ETFs.

Hargreaves Lansdown offers the widest range of investments but charges the most. Their recent fee cut to 0.35% helps, but it is still significantly more expensive than Trading 212 at any portfolio size above about £30,000.

For most readers of this site - people building a low-cost, diversified portfolio with regular monthly contributions, aiming for financial independence - Trading 212 hits the sweet spot of low cost, wide choice, and good automation.

Transferring an Existing Pension

You can transfer existing pensions into the Trading 212 SIPP. Both cash transfers and in-specie (stock) transfers are supported, which means you do not necessarily have to sell and rebuy your holdings.

What you can transfer:

• Other SIPPs
• Defined contribution workplace pensions
• Personal pensions
• Partial transfers (where the existing provider allows it)

What you cannot transfer:

• Defined benefit (final salary) pensions
• Pensions with safeguarded benefits (guaranteed annuity rates, guaranteed minimum pensions)
• Pre-April 2006 pensions
• QROPS (overseas pension schemes)

Important: If your existing pension has a protected retirement age (such as 55 before the rise to 57 in 2028), transferring out will likely lose that protection. Check with your current provider before you transfer.

The transfer process works through the app. Trading 212 handles the communication with your old provider. Timescales depend on the old provider - some complete in weeks, others can take months.

If you are sitting in an expensive workplace pension from a previous employer, paying 0.5-1% in platform and fund fees, a transfer to Trading 212 could save you thousands over the life of the pension.

What You Cannot Do Yet

The Trading 212 SIPP is new and still in beta. There are some important limitations:

No flexi-access drawdown

This is the biggest one. You cannot currently draw income from the Trading 212 SIPP. If you are approaching retirement and need to access your pension, you would need to transfer to another provider that supports drawdown. If you are decades away from decumulation, this is irrelevant. If you are within ten years of drawing income, it matters a lot.

No mutual funds

Trading 212 only offers stocks and ETFs. If you specifically want access to active mutual funds (such as Fundsmith Equity or Lindsell Train), you will need a platform like AJ Bell or Hargreaves Lansdown. For most passive investors using index ETFs, this is not a limitation.

No employer contributions

The Trading 212 SIPP cannot receive employer contributions directly. It is a personal pension, not a workplace pension. You would keep your workplace pension for employer matching and consider the Trading 212 SIPP for additional personal contributions or as a consolidation home for old workplace pensions.

Beta access only

The SIPP is currently available to a limited number of users. You can join the waitlist in the app by tapping the SIPP account option. Trading 212 is onboarding users gradually, so it may take some time before you get access.

UK Pension Allowances for 2026/27

Since today marks the start of the 2026/27 tax year, here is a quick refresher on the numbers:

• Annual allowance: £60,000 per year (including employer contributions and tax relief)
• Tax relief: Available at your marginal rate - basic rate (20%) is claimed automatically; higher rate (40%) and additional rate (45%) must be claimed through self-assessment
• Carry forward: You can use unused allowance from the previous three tax years, potentially contributing up to £240,000 in a single year
• Non-earners: Can contribute up to £3,600 gross per year (you pay £2,880, HMRC adds £720)
• Tax-free lump sum: 25% of your pension, capped at £268,275
• Minimum access age: 55 (rising to 57 from April 2028)

If you have not used your full pension allowance in previous years, carry forward lets you make a much larger contribution this year. A higher rate taxpayer contributing £40,000 to a SIPP effectively pays £24,000 out of pocket after tax relief. That is a 67% return before the money even hits the market. Pensions remain the most tax-efficient way to build long-term wealth in the UK - and stealth taxes like the freezing of income tax thresholds make them even more valuable now.

For a deeper look at how pension matching works and why it is effectively free money, see our pension match calculator guide.

Should You Join the Waitlist?

If you are a UK investor in the accumulation phase - contributing regularly, investing in index funds, and not planning to draw from your pension for decades - yes. Get on the waitlist.

Zero commission. Zero platform fee. Zero trustee fee. Interest on idle cash. Over 13,000 stocks and ETFs. AutoInvest for hands-off monthly contributions. Fractional shares so you can allocate precisely. All in a pension wrapper with tax relief on top.

This is what low-cost pension investing should look like. The traditional platforms have been charging percentage fees for decades and getting away with it because there was no credible alternative. Now there is.

The waitlist is open in the app. If you already have a Trading 212 account, look for the SIPP option. If you do not have an account yet, sign up now - you can use the ISA in the meantime while you wait for SIPP access.

Frequently Asked Questions

Is the Trading 212 SIPP free?

Effectively, yes. There is no platform fee, no dealing commission, no trustee fee, no transfer fee, and no exit fee. The only cost is a 0.15% FX conversion fee when you buy investments denominated in a foreign currency. If you stick to GBP-denominated ETFs, you pay nothing. The SIPP is still in beta, so check the latest fee schedule before committing.

Can I transfer my workplace pension to Trading 212?

Yes, if it is a defined contribution pension. You can transfer old workplace pensions from previous employers into the Trading 212 SIPP. Defined benefit (final salary) pensions cannot be transferred. Check whether your old pension has any exit fees or protected benefits before initiating a transfer.

Does Trading 212 claim tax relief automatically?

Basic rate tax relief (20%) is claimed automatically by Trading 212 from HMRC. If you contribute £800, HMRC adds £200 to make a gross contribution of £1,000. This typically appears in your account within 6-11 weeks. Higher rate and additional rate taxpayers must claim the extra relief through their self-assessment tax return.

Can I have a Trading 212 SIPP and a workplace pension?

Yes. You can have multiple pensions. Most people should keep their workplace pension running to capture employer matching contributions, and use the Trading 212 SIPP for additional personal contributions beyond that. Just remember the total annual allowance of £60,000 applies across all pensions combined.

What happens if Trading 212 goes bust?

Your SIPP assets are held separately from Trading 212's own funds. Trading 212 is authorised and regulated by the FCA and operates the SIPP under its own pension scheme permission. Client investments are covered by the FSCS up to £85,000. In practice, your shares and ETFs are held in your name and would be transferable to another provider.

When will the SIPP be available to everyone?

No confirmed date. Trading 212 received FCA approval in February 2026 and announced the SIPP in March 2026. It is currently in beta with a phased rollout through the waitlist. Keep an eye on the app for updates.

Can I withdraw money from the Trading 212 SIPP?

Not yet. Flexi-access drawdown is not currently available. If you reach retirement age and want to draw income from your pension, you would need to transfer to a provider that supports drawdown. This is a significant limitation for anyone close to retirement, but irrelevant for younger investors still building their pot.

Try Trading 212

If you do not yet have a Trading 212 account, you can sign up using our referral link below. Both you and the site will receive a reward of up to £100 in free shares. Once you have an account, you can join the SIPP waitlist directly in the app.

Join Trading 212 and get up to £100 in free shares →

Disclosure: This is a referral link. If you sign up, we may receive a reward at no cost to you. Capital at risk. Pension rules apply. Not financial advice.

Further reading:

Smarter Investing - Tim Hale - The best book on building a low-cost, evidence-based portfolio in the UK. If you are opening a SIPP to hold index funds, this is the book that tells you exactly which ones and why. (Affiliate link - we may earn a small commission at no extra cost to you.)

The Little Book of Common Sense Investing - John Bogle - The case for index investing from the man who invented the index fund. Short, direct, and the perfect foundation for anyone putting money into a SIPP for the first time. (Affiliate link - we may earn a small commission at no extra cost to you.)

Read next:

• Why Trading 212 Is the Best Platform for Getting Started
• How to Choose a Low-Cost Index Fund
• Pension Match Calculator Guide
• The Decumulation Trap
• Stealth Taxes in the UK