Trading 212 Posts 512% Profit Surge, German Entity Closes.

The Trading 212 Group Limited, which operates under the Trading 212 brand, reported total revenue of £138.7 million for the 2021 financial year. It was a significant increase of 11.2% compared to the previous year.

The pre-tax profits were £86 million, a jump of 473% from the previous financial year. After accounting for taxes and other forex conversion costs, the total comprehensive income of the group company was £71.6 million. It was a 512% increase from the previous year.

Trading 212 Group Limited is a holding company that does not directly offer commercial activities. It has four subsidiaries registered in the United Kingdom, Bulgaria, Cyprus, and Germany. The UK-based entity, regulated by the FCA (Financial Conduct Authority), has revealed that it generated more than £94 million in revenue in 2018 – a yearly jump of 74%.

Its pre-tax profits also increased to £56 million from £26.96 million. Meanwhile, the German company is in the process of shutting down. Clients under this entity will migrate to the UK and Cypriot entities based on their locations. The process will complete by the end of 2022. The group had initially planned to obtain a German license but has scrapped those plans.

Demand Surge

Since Trading 212 experienced a surge in demand from retail traders during the pandemic years, its revenue jumped significantly, going from £30 million in 2019 to £124 million in 2020.

Additionally, its net Profit increased from £7 million to £73 million over the same period. We can attribute the dramatic growth to the platform’s shift towards commission-free stock trading, which made it more attractive to traders.

The demand for the company’s services has grown significantly in recent years, as seen in the increased client money and asset balances. At the end of 2021, the UK entity held £2.9 billion in client assets, while the Cypriot entity held £39.4 million.

This growth has been driven partly by broader market trends and activity but also significantly by the increasing popularity of the platform and its product offering.