As far as I seen, the cause of loss were excessive card/transaction fees covered by T212, thus they introduced the 0.7% fee to cover those costs.
0.7% is ridiculously high, I was shocked when I saw it. And it really did make up a huge proportion of expenses so was definitely a justified move
Thatās what T212 will charge, not necessarily what the banks charge T212.
Also I think you mean āfewer peopleā. Pet peeve of mine. 
Very true, welcome to the club 
Even if it is not the case at present, it is the Companyās business model, as in its official documents.
Per UK regulations, T212 can charge only to the amount charged by card provider(issuing bank).
So I donāt think they will make profit, rather cover existing costs.
Which is fair if they provide clients with free top up, like Open Banking(UK), SEPA for EU clients.
Hopefully Direct debit and Open banking for EU in near future.
Did I say they are charging more?
I meant T212 may be still subsidising the deposits 
If the fees are higher than 0.7% then thatās absurdā¦ Trading 212 should charge the full amount since bank transfers are an option. It would be different if it was a fee on all methods
Anyway, it is an excellent platform, I really hope they fix whatever problems they have soon.
Trading212 makes profit on their Invest/ISA accounts from uninvested cash (collects interest on uninvested cash), spread difference (makes up a very small amount of a transaction) I guess. I could be wrong but hopefully we get an insight into that in the future.
T212 cannot profit from spread as there is no markup in invest or ISA, that is illegal. In fact there are no ways for T212 to profit from the ISA account as it currently exists as they donāt sell order flow (information). They profit from securities lending which is through IB on the invest account, as shares in an ISA canāt be lent out. This is talked about by the staff, not a secret. The link shared by krr13 at the beginning of the topic. As for how profitable, they only need the lending to cover the share dealing service expenses to say such, as all other services were already covered by the CFD platform.
I would pay even more if T212 integrate with German tax department for annual tax declaration, as all German brokers does, also other countries need thatā¦ but since T212 only cares to UK, it will probably never happens.
Donāt forget that while the CFD might be dysfunctional for new trades being executed, there is still a huge number of positions opened
Not quite correct - t212 can profit on ISAs from interest on cash not invested (one of the US brokers stated recently that interest made up over 50% of its income!).