Our Invest & ISA services are profitable

Your reading comprehension and verbal literacy skills are way off on thisā€¦ I didnā€™t know ā€œpleaseā€ equated to an order, silly me I must have misunderstood pleading for commanding.

False. I would have quoted exec @ivan himself on this but his posts and profile appear to have been erased.

Anyway, Iā€™ll chalk this one down to a misunderstanding. Well done Trading212, continue to democratise investing. Thank you.

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You have a multitude of currencies you can use and can load via chooses currency :slight_smile:

First of all, congrats for all the work done. Itā€™s a well deserved prize to Trading 212 and his great team!

Would be nice, to have a thread that aggregates all features on the T212 pipeline, so we donā€™t repeat ourselves asking the same things all the time and bother T212 team with the same old things. (Perhaps a pinned thread.)

It would improve the communication and get all the investors and Trading 212 more involved.

PS: I know that some details couldnā€™t be revealed, such as the ETA, or shouldnā€™t be revealed, as secrets are the soul of the business. :wink:

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I had this idea last year in Jan. Never got the traction. We got feedback initially, but no follow-up.

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Would love to see this!

Yep, it was a good idea, but as you said, never got the well-deserved traction. A official centralized communication policy on some subjects will be a plus.

First thing to put on the Trading 212 Pipeline Features, creating a Trading 212 Pipeline Features Thread. :slight_smile:

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Congratulations @Tony.V and the rest of @Team212 on ISA & INVEST being profitable!

Can somebody (who actually knows) remind me how Trading 212 make money on ISA & INVEST? Iā€™ve read a lot of speculation on the subject and I believed that it was subsidised by CFD.

How is the profitability of CFD?

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That would interest me too

ISA maybe profitable via spreads?

I recall that @David said something about it being illegal to manipulate the spreads, at least on the ISA platform. I think ISA uses the ā€œbase spreadā€. If thatā€™s true, then thatā€™s not a profit source.

For ISA, I can only think of commission on exchange rates and/or bank interest on uninvested cash.

For INVEST, I know that they make money by lending our shares for the purposes of shorting. Could that be enough to cover both services?

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Congratulations :partying_face:
I had 490 trades since March, 2020, the savings made are huge, not just commissions but fx charges as I mostly buy US stocks.
I know I should not have made those many trades. I havenā€™t yet calculated turnover to see how much I have saved on FX. Kudos to @Team212

If Iā€™m in T212 marketing I push for adding a feature to enable sharing savings made over some period of time.

In some popular rocket/FOMO stocks could be enough. :wink:

I thought ISA shares too were up for lending but I have not idea.

Selling the order flow, perhaps? Both on ISA and on Invest accounts. :wink:

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Had to be subsidised until share lending was introduced which I think pushed it over to profitable for the first time as this post says:

  1. Share lending (Invest account only): lending the shares owned by the clients to people wanting to short the stock. Trading 212 earns a fee for lending out these shares.

  2. Bank interest (Invest and possibly ISA): any cash in your account is held in a bank account which earns interest. Trading 212 keeps this interest which is pure profit.

I donā€™t think thereā€™s any other means of monetising the accounts as I say. Spread is just the market spread, and thereā€™s no other fees, other than deposit fees on most methods which is a cost cover rather than revenue generating. When a subscription account is added this will make them even more profitable.

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Theyā€™ve already said they do not do this.

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Damnnn you just made me realize you can do this o_O

That would be so mean

You cannot sell order flow in the UK

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What would you estimate, back of envelope?

  1. Interest on cash. 2B, perhaps 5% of that is cash earning 0.5%. That is just 0.5m.

  2. Share lending. Maybe 5% of the 2B can be loaned out at 4% (half of what IBKR charges). This is 4m.

How many staff, on what average salary? IT costs? Banking costs? Cost of answering clients complaining about delayed dividend payments, etc?

My figures are wild guesses. Perhaps too generous. Is that enough?

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Here is the 2019 financial report.
Might give some clues.

Source:

Direct download:
https://find-and-update.company-information.service.gov.uk/company/08590005/filing-history/MzI3NTQ0ODk2MmFkaXF6a2N4/document?format=pdf&download=0

@Tony.V Promise us right here and now that should T212 decides to have an IPO we should get some free shares as we all made T212 what it is today :wink:

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