Similar to competitors, the broker introduced interest on uninvested funds this year.
However, the terms initially stated that passive and inactive clients might not receive interest payments.
Retail
trading firms and CFD brokers have recently begun offering their clients
interest on uninvested funds. London-based Trading 212 introduced a similar
offer in May, encouraging clients to engage in passive investing.
As it
turned out, the terms included a clause stating that the company reserved the
right to suspend interest payments for inactive clients. In the latest update
to the Invest terms, this unfavorable term has been removed.
Passive Investing in
Trading 212 Only for Active Clients
Record-high
interest rates have led many savers and investors to avoid risk, preferring to
keep their money in bank accounts and earning several percentage points in
interest.
To meet
this demand and retain clients, retail trading firms began offering interest on
uninvested cash. Among them was XTB, which in November 2023 offered up to 5% on
idle client deposits. BidX and Webull later joined with similar offers.
Trading 212
introduced a similar solution in May, along with a multi-currency payment card,
likely aiming to diversify revenue streams and keep clients on board. The new
product offered up to 5.2% interest on uninvested money deposited in trading
accounts.
However,
the offer had a catch. Trading 212's “Invest
Terms” reserved the right to suspend interest payments with immediate
effect. The company cited the need to ensure it operated within its regulatory
permissions.
“15.3.
To ensure that we act within the scope of our regulatory permissions, in order
to be eligible to receive Interest on Cash in accordance with this Clause 15.,
you must actively engage in trading activities through your Account or Stocks
ISA Account with us. For Accounts that are not actively trading, we reserve the
right, at our sole discretion, to suspend any interest payment to you with
immediate effect and we will notify you.”
The change
takes effect on October 4, 2024, so within the next month.
In response to a question about the change asked by Finance Magnates, Mukid Chowdhury, the Group's Chief Executive Officer, responded: “The removal of the clause related to the suspension of
interest payments is part of our ongoing effort to simplify and improve
transparency in our terms and conditions. We strive to ensure that our terms
are clear and beneficial to our clients, and this change reflects our
commitment to providing a more straightforward and customer-friendly
experience.”
Acquisition, New License,
and “Eaten Gains”
Trading 212
has been busy lately. Last month, the CFD company acquired FXFlat Bank GmbH as
part of its expansion into the German market. This acquisition aims to provide
German investors access to Trading 212's commission-free investment platform,
which promises to disrupt traditional brokerage models in the UK and Europe.
Earlier in
June, the company obtained a cryptocurrency license in Cyprus, becoming an
official crypto asset service provider (CASP). According to the Cyprus
Securities and Exchange Commission (CySEC) register, the CASP license was
granted to a local entity called Trading 212 Crypto Ltd on May 20, 2024. This
newly formed entity is separate from Trading 212 Markets Ltd, which holds a
Cyprus Investment Firm (CIF) license.
In May, the
London-based broker published its results for the previous year, showing that
the UK subsidiary experienced a slowdown in revenue and profit growth in 2023.
The brokerage operator reported a 3% decrease in revenue and a 28% decrease in
pre-tax profits over the year.
The
company's profits were affected by increased administrative costs, which rose
by 45% to £71.2 million due to intensified marketing efforts. The firm resumed
marketing activities in the last quarter of 2022 and spent over £7.4 million on
research and development.
Retail
trading firms and CFD brokers have recently begun offering their clients
interest on uninvested funds. London-based Trading 212 introduced a similar
offer in May, encouraging clients to engage in passive investing.
As it
turned out, the terms included a clause stating that the company reserved the
right to suspend interest payments for inactive clients. In the latest update
to the Invest terms, this unfavorable term has been removed.
Passive Investing in
Trading 212 Only for Active Clients
Record-high
interest rates have led many savers and investors to avoid risk, preferring to
keep their money in bank accounts and earning several percentage points in
interest.
To meet
this demand and retain clients, retail trading firms began offering interest on
uninvested cash. Among them was XTB, which in November 2023 offered up to 5% on
idle client deposits. BidX and Webull later joined with similar offers.
Trading 212
introduced a similar solution in May, along with a multi-currency payment card,
likely aiming to diversify revenue streams and keep clients on board. The new
product offered up to 5.2% interest on uninvested money deposited in trading
accounts.
However,
the offer had a catch. Trading 212's “Invest
Terms” reserved the right to suspend interest payments with immediate
effect. The company cited the need to ensure it operated within its regulatory
permissions.
“15.3.
To ensure that we act within the scope of our regulatory permissions, in order
to be eligible to receive Interest on Cash in accordance with this Clause 15.,
you must actively engage in trading activities through your Account or Stocks
ISA Account with us. For Accounts that are not actively trading, we reserve the
right, at our sole discretion, to suspend any interest payment to you with
immediate effect and we will notify you.”
The change
takes effect on October 4, 2024, so within the next month.
In response to a question about the change asked by Finance Magnates, Mukid Chowdhury, the Group's Chief Executive Officer, responded: “The removal of the clause related to the suspension of
interest payments is part of our ongoing effort to simplify and improve
transparency in our terms and conditions. We strive to ensure that our terms
are clear and beneficial to our clients, and this change reflects our
commitment to providing a more straightforward and customer-friendly
experience.”
Acquisition, New License,
and “Eaten Gains”
Trading 212
has been busy lately. Last month, the CFD company acquired FXFlat Bank GmbH as
part of its expansion into the German market. This acquisition aims to provide
German investors access to Trading 212's commission-free investment platform,
which promises to disrupt traditional brokerage models in the UK and Europe.
Earlier in
June, the company obtained a cryptocurrency license in Cyprus, becoming an
official crypto asset service provider (CASP). According to the Cyprus
Securities and Exchange Commission (CySEC) register, the CASP license was
granted to a local entity called Trading 212 Crypto Ltd on May 20, 2024. This
newly formed entity is separate from Trading 212 Markets Ltd, which holds a
Cyprus Investment Firm (CIF) license.
In May, the
London-based broker published its results for the previous year, showing that
the UK subsidiary experienced a slowdown in revenue and profit growth in 2023.
The brokerage operator reported a 3% decrease in revenue and a 28% decrease in
pre-tax profits over the year.
The
company's profits were affected by increased administrative costs, which rose
by 45% to £71.2 million due to intensified marketing efforts. The firm resumed
marketing activities in the last quarter of 2022 and spent over £7.4 million on
research and development.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
MetaTrader 5 Now Supports over 40 Payment Options for Global Traders
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
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