How to invest in money market funds on Trading 212
Mark Tovey is a finance journalist with bylines in The Guardian, The Motley Fool, and more. He digs into data and FOI-based investigations, and makes finance easier to understand.
Last updated 25th February 2026
4 min read
- Money market funds earn modest interest by investing in safe, short-term debt
- Trading 212 currently offers a small selection of funds priced in GBP
- You can use the “money market” filter under ETFs to view all the MMFs available
- There’s also the option to enable interest on your spare cash, which will invest your funds in QMMFs.
Financial Interest provides guidance, not advice. If you’re unsure about anything, speak with a qualified adviser. When investing, your capital is always at risk. Past performance does not guarantee future results.
What are money market funds?
Money market funds (MMFs) earn interest by investing in short-term debt from stable governments, banks, and top-rated businesses.
They typically pay a bit more than a savings account, but unlike a bank, your money isn't protected by the Financial Services Compensation Scheme (FSCS).
In rare cases, these funds can lose value. This is called "breaking the buck", and it happened during the 2008 financial crisis when a US fund's price dropped below its target range of $1 per share. However, this is extremely rare and regulations have been tightened since then.
They can be a great option for short-term, lower risk investing. But, as with all financial products, it's important to understand what you're buying before diving in.
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Money market funds on Trading 212
If you're sure you want to invest, and you understand the risks, Trading 212 is a fee-free platform that offers some MMF options priced in GBP (£):
- CSH2 - Amundi Smart Overnight Return
- XSTR - Xtrackers GBP Overnight Rate Swap
CSH2 vs XSTR: What's the difference?
Both funds invest in short-term, ultra-safe debt and track overnight interest rates. However, there are some differences:
| CSH2 (Amundi Smart Overnight Return) | XSTR (Xtrackers GBP Overnight Rate Swap) | |
|---|---|---|
| Interest type | Reinvests (Accumulation) | Pays out (Distributing) |
| Tracks | €STR (Euro short-term rate) | SONIA (UK short-term rate) |
| Expense ratio | 0.1% | 0.1% |
| Best for | Compounding growth | Regular cash payouts |
If you want interest paid out as cash, you should pick XSTR. If you want it reinvested automatically, CSH2 is the better pick.
If you want to learn more or get a clearer idea of how money market funds could fit into your overall strategy, check out our beginners' guide to money market funds.
How to invest in money market funds on Trading 212
1. Log in to Trading 212
Or sign up if you don't already have an account.
If you’re new to the platform, here’s a quick tutorial. Skip to 1:25 for details on setting up an account. Alternatively, check out our beginner’s guide.
2. Search for specific MMFs or filter to view them all
Two examples of MMFs priced in Great British Pounds on Trading 212 are CSH2 and XSTR. These aren't recommendations, just examples. To find these, simply click the search bar and type in the ticker.
To view Trading 212's full range of money market funds, filter by clicking All ETFs > Fixed Income > Money market.
You can invest in MMFs priced in other currencies, though this will incur FX fees.
Currency fluctuations can also affect your returns both positively and negatively. For most people in the UK, London-listed versions are a more logical choice if you want to avoid this risk and additional costs.
3. Click the fund, then hit "Buy"
If you're happy with the fund you've chosen to invest in, click 'Buy'. Then, set the amount you'd like to invest, along with your order type (it will be a "market order" by default).
4. Click 'Review order' and submit if you're happy
Side note: Trading 212 pays interest on uninvested cash
If you don't want to actively invest in a money market ETF like CSH2 or XSTR, you can opt in so that Trading 212 places your uninvested cash into "qualifying money market funds" (QMMFs) and bank accounts, then pays you interest. You'll find our instructions on how to do this here.
However, there's a catch. In short, money held in QMMFs also isn't FSCS protected, meaning in a worst-case scenario, you wouldn't be covered.
Like banks would, Trading 212 also takes a cut of the returns before passing the rest on to you.
If you want full control over your money market investment (and possibly better returns), you might prefer to invest in a money market fund yourself rather than relying on Trading 212's automatic allocation.
Of course, the same risk applies: your investment won't be covered in the event of something going wrong, and you are responsible for your own investment decisions.
Financial Interest provides guidance, not advice. If you’re unsure about anything, speak with a qualified adviser. When investing, your capital is always at risk. Past performance does not guarantee future results.
