The future of trading on T212

The situation now is:

1- T212 offers free Invest / ISA platform
2- T212 depends on CFD to generate income
3- CFD is currently dysfunctional (that was discussed extensively), and less people are trading, so the income flow must be decreasing.

How do you think this is going to be solved?

1 - Yes they do.
2 - Apparently they don’t.
3 - see 2.

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:eyes::point_up_2:

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The profitable post isn’t completely explicit and I’d love to get confirmation on the extent of this. For example, is it profitable including all the staff costs? Since staff costs are fixed and spread across both sides of the app. But future plans are to create a premium account, other than that I don’t know anymore revenue streams planned from invest and ISA

If T212 follows the actual trend in the business, they will end up making most of their money by lending shares and selling data. Their CFD service sucks and they know it. I haven’t seen any attempt to improve it though so I wouldn’t be surprised if the service gets terminated at some point…
I’m speculating of course.

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Does it actually matter to users how profitable a private company is, the key point should be are your assets ‘safe’ which is also a question that has been asked several times.

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I’d rather they didn’t go Bust though :sweat_smile: kinda like using them

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Where did you find that information from?

In 2019, the company filed a loss.

But the free component depends on the CFD side, I think it is more likely to be modified than terminated.

When are the 2020 accounts due they will be very interesting to see!

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If they where able to stay in business this long and increase active users this much, I think they will be just fine.

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two things on that, keep in mind that even tough ISA/Invest might be profitable could 1 pound or 1 billion. Also that doesn’t mean that without CFD they will keep being profitable, because of things like company wide expenses that get split into CFD/ISA/Invest would then be be split only across ISA/Invest and also depends on how they did their accounting.
so
ISA/invest profitable not equal without CFD T212 is profitable

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Profitable Invest and ISA does not necessarily mean a profitable company. The £2B is client assests (an average of £2000 per account), a sign of success but not of profitability.

Sure but your original post was based on a potentially incorrect assumption that the invest side was still funded by CFDs. The reality is we won’t know until we see the 2020 or possibly 2021 accounts - whenever we see the full impact of cost reductions and share lending income.

We know that T212 have drastically reduced the costs of running the invest side by getting people to deposit using cheap or free means or by forcing customers to pay for more expensive deposit mechanisms.

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That was only introduced recently though, don’t think we’ll see a big impact of that until the following year

If Trading212 charged a monthly fee for invest/isa accounts of let’s say £2 a month? - would you pay?

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