Trading 212 has quickly emerged as a prominent player in the online brokerage industry, offering commission-free trading to a global audience. Established in 2004, the financial holding company operates through its key subsidiaries in the United Kingdom, Bulgaria, and Cyprus, catering primarily to clients in the UK and the European Union.
We will focus on Trading 212 Group Limited, which includes the main subsidiary, Trading 212 UK Limited, which represents ~85% of the overall Group revenue, but excludes the subsidiary Trading 212 AU PTY LTD (Australian investors).
In this article, key statistics about Trading 212, including assets under management (AUM), user growth, revenues, and more, will be explored, offering insights into its rise and financial performance.
Trading 212 subsidiaries
As of 31 December 2022 (the latest information on the Group), Trading 212 Group Limited (called “Group” from now on) had three principal subsidiaries, namely:
- Trading 212 UK Limited: registered in the United Kingdom and regulated by the Financial Conduct Authority (FCA);
- Trading 212 Limited: registered in Bulgaria and regulated by the Bulgarian Financial Supervision Commission (FSC);
- Trading 212 Markets Limited: registered in Cyprus and regulated by the Cyprus Securities and Exchange Commission (CySEC).
Additionally, there is a fourth subsidiary that is focused on the Australian market: Trading 212 AU PTY LTD. It is registered in Australia (ABN 46 660 342 763) and regulated by the Australian Securities and Investments Commission (ASIC). Unfortunately, we could not access any financial data concerning this subsidiary.
Please note that, according to Companies House, Trading 212 UK Limited has access to data as of 31 December 2023. We will also use that information in our analysis.
Revenues
Trading 212 revenues were £115m in 2022, a decrease from £139m in 2021. The UK subsidiary was responsible for roughly 85% of 2022 revenue.
The UK subsidiary data for December 2023 (not available for the Group yet) shows a 2023 total revenue of £95m, down 3% from the prior year. If the UK market continues to represent the same exposure to the Group (~85%), the Group revenue might have been between £110m and £120m.
In 2022, the administrative costs were increased, particularly on staff and marketing. We believe this trend as continue throughout 2023 and even 2024, given their talent acquisition and marketing efforts since then.
Trading profit after tax in 2022 was £30m, compared with £73m the previous year. For the UK subsidiary, the profits were down ~27%, from £41m to £30m.
Net assets sit at £151m, up from £116m at the end of 2021, while cash balances have increased from £115m to £129m over the same time period.
| Description | 2022 (£000) | 2021 (£000) |
| Revenue | 114,909 | 138,685 |
| Gross profit | 114,909 | 138,685 |
| Other operating income | 2,194 | 4,701 |
| Administrative expenses | -75,553 | -57,018 |
| Profit from operations | 41,550 | 86,368 |
| Finance income | 421 | 244 |
| Finance expense | -1,402 | -564 |
| Profit before tax | 40,569 | 86,048 |
| Tax expense | -10,265 | -13,109 |
| Profit for the year | 30,304 | 72,939 |
| Exchange gains arising on translation of foreign operations | 3,862 | -1,317 |
| Total comprehensive income | 34,166 | 71,622 |
Source: Trading 212 Group Limited – financial statements
Trading 212 AUM and number of users
As of October 2024, the Assets Under Management (AUM) of Trading 212 was €4 billion in client assets and cash. Besides, the number of users, defined as “lifetime funded accounts”, was 3 million, as shown on their homepage:
If you want to know how Trading 212 compares with other brokerage firms regarding AUM, please check our article on the topic.
Average account balance
By dividing the assets under management by the “lifetime funded accounts”, we get an average account balance of €1,333 per user.
Business model
The main activities of Trading 212 focus on the following:
- Stockbroking platform: Through “Trading 212 Invest” account, it offers a commission-free stockbroking service that allows users to buy and sell shares of publicly traded companies. It operates under a zero-commission model, meaning clients do not pay fees for trades, nor do they incur custody fees for holding assets on the platform. Revenue is generated through services such as foreign exchange conversions when trades are made in a different currency than the one deposited.
- Contract for Difference (CFD) Trading: Through “Trading 212 CFD” account, it allows traders to speculate on the price movements of financial assets like stocks, currencies, commodities, or indices without owning the underlying asset. This type of trading involves leveraging and allows for short-selling. For positions held overnight, Trading 212 applies an overnight interest rate charge/credit based upon the value of the positions, the prevailing market interest rates and a mark-up;
- Stock lending: Part of their revenue is generated through a fully collateralized stock lending program, allowing them to earn income by lending out stocks held by clients under certain conditions.
Nonetheless, Trading 212 is shifting its focus from CFDs to stockbroking. According to its 2023 fillings: “While operating both a stockbroking and CFD platform, T212’s growth strategy remains focused on the stockbroking part of the business and growing the value of client money and client asset balances”.
Is Trading 212 planning an IPO?
No. According to company representatives, “Trading 212 does not currently have anything planned for a potential IPO, so we will refrain from sharing anything specific on the matter”.
Trading 212 valuation
According to PitchBook, Trading 212 has had three financing stages:
| Deal Type | Date | Amount |
| Series A | 27-Jul-2021 | $19M |
| Seed | 01-Aug-2020 | $2.62M |
| Seed | 01-Mar-2017 | – |
Since we have no information about the proportion of the company equity that was obtained, we have no way of knowing the Trading 212 valuation.
Bottom line
All in all, Trading 212 has established itself as a key player in the online brokerage industry, particularly in the UK and Europe. With a user base of 3 million and €4 billion in assets under management, the company has seen notable growth since its inception in 2004.
However, financial challenges have emerged, with revenues declining from £139 million in 2021 to £115 million in 2022, and profits after tax dropping from £73 million to £30 million in the same period. Despite these headwinds, the company remains focused on its stockbroking platform, reducing reliance on CFD trading.
While no IPO is currently planned, Trading 212’s expansion strategy and client base position it for further potential growth in the future.