Trading 212, the well-known online brokerage, posted revenue growth in 2023, with total revenue reaching £116.2 million, a slight increase from £114.9 million in 2022.
However, the company’s net profit took a hit, dropping by 35% to £22 million, down from £34.2 million the previous year. The decline in profitability was primarily due to a significant rise in operating expenses.
A key driver of revenue growth was Trading 212’s interest income, which surged to £15 million in 2023, compared to just £0.4 million in 2022. This increase was attributed to higher interest rates that boosted returns on uninvested cash.
Despite this, rising costs, particularly in advertising and staffing, weighed heavily on the company's net profit. The firm’s advertising expenditure more than doubled to £27.1 million, up from £13.1 million in 2022, as part of its strategy to increase market share.
Client assets on the rise as Trading 212 expands in Europe
Trading 212, owned by Bulgarian entrepreneurs Borislav Nedyalkov and Ivan Ashminov and led by CEO Mukid Chowdhury in London, also revealed key client asset figures. As of December 31, 2023, client funds in segregated accounts amounted to £438.6 million, up from £306.7 million in 2022.
The total value of client assets on the platform grew to £3.36 billion from £2.08 billion, reflecting increased investor engagement.
In a move to expand its European footprint, Trading 212 completed the acquisition of German CFD broker FXFlat in 2023. The €4 million deal was executed in two phases, with an initial 10% stake acquired for €385,012 and the remaining 90% for €3.604 million.
This acquisition reinforces Trading 212’s commitment to strengthening its presence across Europe.
New initiatives boost client engagement
While Trading 212 operates both exchange-traded and CFD platforms, its primary focus remains on exchange-traded products.
The platform’s popularity is driven by features such as zero-commission trading, fractional shares, and mobile access, attracting a tech-savvy and cost-conscious user base.
In 2023, Trading 212 also launched two key initiatives aimed at enhancing client returns. In June, the brokerage began sharing interest on uninvested cash with clients and introduced a fully secured stock lending program, enabling users to earn additional income.
Both initiatives have been well-received, contributing to the platform’s steady growth and increased client engagement.
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