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All reputable brokers, including Trading 212 and eToro, ask for your National Insurance Number (NINO). But why? And can you open a brokerage account without a National Insurance Number? Adding your NINO is a hassle, but as shown below, brokers have legit reasons for this rule.
What Is a National Insurance Number (NINO)?
The National Insurance Number, abbreviated NINO, is an insurance number. You need it for insurance and tax purposes. Every UK resident should have one. British people get their National Insurance Number before their 16th birthday. People immigrating from abroad need to apply for one.
Your National Insurance Number is a personal identifier. To prevent identity fraud, you should not share it with anybody.
Where Can You Find Your National Insurance Number?
You can find your National Insurance Number on the following documents:
- Payslip
- P60
- Letters about your tax, pension or benefits
- National Insurance Number card, if you have one
- In the National Insurance section of your tax account
Contact the National Insurance Number helpline if you cannot find your NINO. HMRC can tell you your National Insurance Number over the phone and post it to you.
Brokers Need Your National Insurance Number to Comply With the Law
eToro, Trading 212, and other reputable brokers need your NINO to follow the law. The Markets in Financial Instruments Directive II (MiFID II) forms the legal basis for this.
It asks all traders to confirm their nationality and provide a national identifier. Brokers in the UK also must report all your trades to the Financial Conduct Authority (FCA). They use your National Insurance Number to identify you.
Another reason trading platforms need your NINO is to confirm your identity. If you are a company, trust, or charity, you must provide a Legal Entity Identifier (LEI) instead of your NINO.
You Can Open Some Accounts Without a National Insurance Number
You should apply for a NINO if you do not have one. While you wait for it, you can open accounts with some brokers.
For example, with Hargreaves Lansdown, you can hold funds without a NINO. You can open a General Investment Account without a National Insurance Number with Moneybox.
While you can sign up without, you must provide it before selling your assets. If a broker doesn’t ask for your National Insurance Number, they are likely not legit. You should not create an account with them or provide personal data.
Without your National Insurance Number, you also can’t open the following accounts:
- Individual Savings Account (ISA)
- Lifetime ISA
- Other ISA accounts
- Self-invested Personal Pension (SIPP)
Why Do Brokers Ask for Your National Insurance Number? Summary
Online brokers ask for your National Insurance Number to comply with the law. They use it to confirm your identity and report trades to the FCA. A broker not asking for your National Insurance Number is not legit.
You can open some investment accounts without a NINO. However, you can’t sell assets or withdraw money without it.
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