Okay so I’m on the phone, so I’ll keep it simple and short,
Trading 212 team member said here on this forum on a similar topic post that they are profitable since 16 years. I could have gotten the number wrong but it was definitely not a few years. Be my guest and search.
I don’t have the Bulgarian fillings.
80% who loose of course will not be happy, but one who bets once, always bets again. I’ll give you my example. I lost some 200€ before I realized I’m happy with options and stocks. Realizes LTV of a user like me is already 200€+.
I started very small, most people loose much much more. And a good number of them don’t stop trading unless they loose all. Or make more.
I don’t know their filings and neither did I read them, also the quote says transactional revenue, whereas the team said there don’t make money via order flow. Also I don’t know how old that report is. Because remember, T212 eradicated most of the fees in the last 12 months while they saw tremendous growth. So their plans could have changed.
Also I didn’t just write that for no reason, the team clearly mentioned on a post where someone was requesting a 10€ a month premium plan, the team said there will be nothing like that and they will have all features and more free. Go search on the platform please, I’m assuming you are new here.
Also to point out, they don’t have inflated spread in Invest/ISA accounts, even in fractional/pie transactions, it’s just that it’s traded OTC and they take the other side, so they could make money unintentionally, if the price goes in their favor. I hope you understand what I mean here.
Now about assets under management, the team often teases us with some numbers, especially Alex. He pointed out recently how much the pie values and number of pies have grown, exponentially. Again I don’t have solid numbers. Please make a search on the platform because clearly you are the one who’s in doubt.
Lastly about lending shares, I assumed 1 billion in shares value, but I believe it’s more than that. And 5% of course is high, some stocks have very high shorting fee, others have almost nothing. IBKR is a major international broker and is leading in institutional and active traders, offering APIs as well. So of course these people like to short. A lot.
Now was I right with 5% yield, most probably not, but that’s not the point. The point is they are making money from this. Even if it is 1% or less, 1% of a billion is still 10 million and that’s just assuming 1 billion.
I hope you understand.