Trading 212 Sees 512% Profit Surge in 2021, Closing German Entity

Trading 212 Group Limited, the holding company of four entities operating under the Trading 212 brand, reported total revenue of £138.7 million for the 2021 financial year, which ended on December 31. The figure jumped by more than 11.2 percent year-over-year.

According to the Companies House filing, the pre-tax profits came in at £86 million, which is 473 percent higher than the figure generated in the previous financial year. Considering taxes and other forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term conversion costs, the total comprehensive income of the group company came in at £71.6 million, compared to £11.6 million in the previous year, which is a growth of 512 percent.

Trading 212 Group Limited is a holding company and does not directly offer any commercial activities. It operates through four subsidiaries which are registered in the United Kingdom, Bulgaria, Cyprus and Germany.

Earlier, the UK-domiciled entity, which is regulated by the FCA, revealed that it had generated more than £94 million in revenue, which is a yearly jump of 74 percent. In addition, its pre-tax profits increased to £56 million from £26.96 million.

Meanwhile, the German company is in the process of shuttering. The clients under the entity are being migrated to the UK and Cypriot entities, based on their locations, and the process is expected to be completed by the end of 2022.

Earlier, the group intended to obtain a German license, but those plans seem to have been scrapped.

Demand Surge

The demand for Trading 212, and thus its performance, exploded during the pandemic years when it witnessed an influx of retail traders. Its revenue jumped to £124 million in 2020 from only £30 million in 2019. Moreover, the net profit increased from £7 million to £73 million over a span of three years.

The shift of focus of the platform towards commission-free stock trading over offering contracts for differences (CFDs) instruments also helped the company in pushing demand for its services.

On top of that, the demand growth can be seen in the increased client money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term and asset balances. At the end of 2021, the UK entity was holding £2.9 billion in client assets, while the Cypriot entity was holding £39.4 million.

“The growth has been led partly by broader market trends and activity, but also crucially by the increasing popularity of the platform and our product offering,” the filing of the holding company stated.