Today our co-founder Ivan was on Sky News with Ian King.
I’m advertising Trading 212 but people keep doubting the veracity of such company, as how do Trading 212 make profit if there isn’t any fees. How can I defend Trading 212? I read in other post it is from CFD trading, is it?
Our revenue comes from our CFD business. It’s enough to cover the cost of our free investing service. We have a working business model and we are profitable.
I’d suggest the doubters to examine the business model of our competitors. Some of them not only don’t have a meaningful revenue, but even struggle to gain much traction being bellow 60th position in the app stores.
Who and on what basis will give them money in the next funding round?
Thanks for the feedback! Great to know that.
Is the item somewhere online? Sky News is not aired in The Netherlands.
Not yet, we’ll let you know when it is available.
Thanks. I was already searching on their site and their YouTube channel.
It is worth noting that free investing is now common with many US brokers, so it is a business model that others make work - just new to Europe. For example I know that Fifth/Third bank of Cincinnati (ticker FITB) provides free dealing to its customers. If a old legacy bank like Fifth/Third can do this, surely can a nibble new player like T212. I expect days are numbered for firm’s like Hargreaves Lansdown, charging £11.95 per trade and as much as 1.5% for currency exchange.
Another source of revenue can be if market makers pay a broker for order flow. But I think this is illegal in Europe, so T212 would not be doing it. Lending out stock overnight is another revenue earner. I guess we have to hope that enough people continue to enjoy CDF trading. It will be interesting to see what paid for extras are introduced by T212 in future months.
Not yet on the YT channel.
definitely giving this a watch.
Please drop us a link once it goes live @AlexK