In 2022, non-UK entities within the Trading 212 umbrella faced a significant revenue drop and incurred losses, as shown in 2022 Financials, while the UK entity proved to be the primary revenue driver and remained profitable. The overarching company of Trading 212, known as Trading 212 Group, managed to close the year with profits, mainly attributed to the UK operation’s performance.

Two non-UK entities, one based in Bulgaria and the other in Cyprus, collectively generated £16.2 million in annual revenue for 2022, a notable decline from the previous year’s combined revenue of £44 million. Despite this, the Trading 212 Group’s total revenue amounted to £114.9 million, signifying a 17 percent year-over-year decrease. Impressively, the UK entity, Trading 212 UK Limited, accounted for over £98.7 million of this total revenue.

The Trading 212 Group encompasses three distinct entities: Trading 212 UK Limited, which is registered and regulated in the UK; Trading212 Limited, located in Bulgaria; and Trading 212 Markets Limited, situated in Cyprus. In the previous year, the group shuttered its German entity and transferred clients’ funds to the UK and Cypriot entities.

Trading 212 2022 Financials: UK Entity Thrives!

While the umbrella group achieved a pre-tax profit of £40.5 million, it marked a decline from the previous year’s £86 million. A financial report from the UK entity showed a pre-tax profit of £50.8 million for 2022, indicating that the Cypriot and Bulgarian branches concluded the year with a combined loss of £10.3 million. Trading 212 Group Limited, as a whole, reported a net profit of £30.3 million for the year, representing a 58.4 percent decrease from the previous year’s figures.

Despite the financial challenges faced by the non-UK entities, Trading 212 maintained a robust client onboarding process. The company operates two main segments: a stock brokering platform and a contracts for differences (CFDs) trading platform, both under the Trading 212 brand. Most of its clients originate from the United Kingdom and the European Union.

After a temporary pause in client onboarding, Trading 212 UK resumed accepting new clients in August 2022 and concluded the year with 165,968 unique customers. Meanwhile, the Cyprus entity successfully onboarded 424,281 new clients throughout the year. The Trading 212 brand is presently shifting its focus from the CFDs business to the stock brokerage, utilizing a zero-commission business model.

The Companies House filing elaborated on the growth strategy, emphasizing the concentration on the stockbroking sector and the expansion of client asset balances, ultimately driven by the platform’s popularity and product offerings.

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