The democratisation of the financial markets is happening. The new generation is joining.
Considering how the markets were free-falling this week, which typically scares most investors, and the fact that just 4 months ago when I joined T212, the front page was boasting ‘only’ 160000+ customers, this growth is indeed quite impressive. The marketing campaign must have worked wonders. If you guys keep delivering on features and growth, I can see this platform being a leading broker in Europe in the not so distant future.
That is very impressive. Can you share with us total assets under management?
From their 2018 annual report under the Financial Key Performance Indicators, client funds held is reported at £20.2 million. My wild guess is that it’s probably around £500m now.
How I came up with the number; Well, Robinhood in the US has an average account value $1-5k. T212 has onboarded 100,000 in just one week. It’s difficult to tell how much growth they have had throughout the year, but they report client acquisition numbers split between the ESMA restrictions at the end of 2018. Overall I would guess at around 300,000 - 350,000 users with an average account value of about £1,500. Value is on the lower end because I don’t think europeans have the same propensity to invest as americans.
Have to say they have a really healthy balance sheet with basically 0 long term debt.
I don’t think we have any estimates to the average balance of users on the platform, however there was the previous mention that funds in new users accounts have been up 500% and now we find out that the users on the platform have practically doubled as well.
I think it safe to say T212 has probable broken the £1billion demarcation line needed for other brokers to feel the threat. I say this on a basis that if all 260,000+ users simply had a balance equal to my own T212 would be already at the £500m mark and many of the users have far more funds than myself.
I am also curious about AUM. Recently the Chicago broker M1 Finance, which many people in this forum are familiar with judging by the feature requests, have surpassed 1 billion USD AUM, and they only claim 100000 users on their home page. With that said, indeed, investing is quite more popular in the States than in Europe, and the average salary is quite a bit higher.
To put those estimates in perspective, we can find data that in winter 2018 Hargreaves Lansdown administered £91.6 billion of investments for over 1,090,000 clients. This gives an average account size around £83,000. At September 2019, AJ Bell had £52.3 billion of assets and 232,000 customers, meaning an average account size of £225,000. Interactive Investor is said to have £30b of assets, over 300,000 customers. I wonder how great is the overlap between people who would be customers of HL/AJ Bell/II vs Trading 212.
I wonder how many customers of Trading 212 have accounts of 5, 6 and 7 figure sizes, as those others do.
I would expect that all investment platforms have a very long tail of small or inactive accounts. A more useful figure would be the median account size. Perhaps with the offer of an ISA account to UK investors, which encourages full use of the £20,000 pa allowance, the number of 5+ figure accounts at Trading 212 will rapidly grow.
There may be people with investment assets of over £100,000 who would feel comfortable placing them with T212, but it will be difficult for them to do so unless transfers in specie become available.
there definitely needs to be a weighted average rather than pure numbers, because as we all know its hard to get £1000 to £1500, but easy for someone with £1million to reach even just £1.5million in about the same time. those with lots of money can make more money in less time than those further down and the resulting numbers mean the average per account continues to raise by a decent level even if the bottom 40% of accounts only make up perhaps 15% of the broker assets.
right now I can only mourn lacking the funds, yet be happy the crash occurred and allowed me to increase holdings in rather pricey shares to increase my future gains. If i had more funds at my disposal I could have made this crash really work for me by dragging my entire portfolios average share cost to new lows. This non-stop bull market had me genuinely worried about the future.
Yes, if I had more available money now I would use it all to bring my average down a bit more. my hope is we continue to see sellers for the next weeks so I can at least take advantage of the correction a bit more.
pandemic fear hits to the market tend to last over a month. so you should have plenty of time.
I doubt we have seen true low’s yet
Will be plenty more chance to get cheaper stocks:)
I bought shares on a p/e of 3 in 2009. Once they hit the bottom they can double in months. However, it isn`t nusual for them to more than half from their peak first.