I can't believe they are still allowed to trade as a UK entity!
They are not the cheapest on average. They are certainly not the easiest. They do have nasty hidden charges (they charge you £10 per year for your own subdomains!). They autorenew very much earlier than they tell you they will by email. They don't make it easy to remove payment methods. They make it hard for you to transfer out. If their system takes payment incorrectly, it can be months before you get them to cough up a refund. Their web panel often shows errors, incorrect details, inconsistent details, or shows details that do not match the emails they send you. Their support is like talking to a computer, if the answer is not on the support assistant's screen, be prepared for a long drawn out tiresome dialogue where you wonder whether the issue will ever get solved.
Tip: If you don't want to pay for your subdomains, like you don't with other companies, and you have hosting with another company, you should be able to set the nameservers to that company's and then set up subdomains. That will probably also improve DNS resolution time of your site (because 123-reg's nameservers are rubbish). However, don't be surprised if occasionally they revert back because 123-reg's settings don't always stay how you left them.
In summary, if you are a lawyer with plenty of spare time, who knows about trading standards and consumer rights, and doesn't mind getting in a dispute, this is the company for you. For everyone else, avoid like the plague! I've been with DreamHost for the past year (though still a handful more domains to transfer), and I have not been disappointed. I still have ongoing disputes with 123-reg.
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