I understand there is no business account available as of yet, although I have heard it might be the case at some point.
Maybe somebody from Trading 212 team can tell me how far in the future we can expect that to happen as I really want to start trading using my company.
And if it does happen, will it be available in any country or in just some of them?
Genuinely fascinated whether people of this forum think that âbusiness accountsâ are a viable (valuable) business opportunity?
Would you âinvestâ you Company monies?
Serious. Would you?
Youâll risk the capital value going down (yes, even with âlow riskâ bonds). Depending on the exact asset you hold you âmayâ not get daily interest/dividends. You âmightâ expose yourself to (higher) capital gains rather than income tax and so on
So. You âmightâ profit. But you âmightâ not.
You âmightâ generate tax liabilities you wouldnât on cash.
You âmightâ generate 5% plus⌠but you also âmightâ not.
If cash in a bank was, say, 5% and interest on a US bond was 5.25 or 5.5 then you minus provider fees so you end up with 5 to 5.25% ⌠would you do it?
The sign up âmightâ be harder as verification/KYC/KYB could be harder
Youâll have to pay for an LEI to be able to open an account Iâd imagine (as you need to identify the business for trade reporting etc)
All in all :: is there a business here for Lightyear or Trading 212 - if they decided to follow down this path?
A niche business yes, if I were to setup a company as a wrapper to hire out my services I could invest prior to dividend taxes and write losses off against profit of the markets tumble.
I kinda see that. But thereâs a maths hurdle and pain hurdle, surely:
Setting up a business solely for this purpose has a cost â accountants, software, tax returns, LEIs etcâŚ
That equals some level of friction and pain.
Given that would you bother?
Maybe yes. Maybe no.
But that example is probably super niche.
Would an everyday sole trade/business owner/ Company do this with their cash? Itâs nearly âinvestingâ. You can sugar coat it and rationalize it as much as you like it is âinvestingâ and given that would a Company âriskâ losses⌠or even the tax implications of the âgainâ.
Folk understand cash. Do folk really understand the intricacies of investing?
Iâm unsure.
Iâve laboured this question too much.
I clearly remain unconvinced their is BIG opportunity in the D2B (or B2B) brokerage space.
I guess Lightyear are the litmus test.
And if they really do have over 1000 companies signed up already well good for them and I might be wrong
I have a âSPVâ limited company the sole purpose of which is investment so I am desperate to be able to do this through Trading212 now; is there any news on timescales for this please?