Investment trading platform, SelfWealth (SWF) has witnessed a decline in revenue as the number of active traders on its platform rises.
According to the company’s December quarterly report, operational revenue declined to $5.07 million, down from $5.5 million in the previous quarter but up 14 per cent year-on-year.
The decrease is reportedly due to a customer acquisition promotion in which customers were offered free brokerage when buying Exchange Traded Funds (ETFs).
SelfWealth said its active traders were up by 10,213 to 117,674, representing a 9.5 per cent increase to the previous quarter.
SWF said it has started diversifying revenue streams across different exchanges. During the quarter, total receipts from US trading represented over 10 per cent of revenue, with 34 per cent of active traders having added US trading to their portfolios by the end of last year.
The company reported a three per cent quarter-on-quarter decrease in the number of trades executed during the period, which represents an 11 per cent increase when compared to the previous year. The company said the second quarter is a seasonally slower trading period due to the holiday season disrupting retail trading activities.
Client cash on the platform reportedly increased by eight per cent compared to the previous quarter to $646 million. This represents a 49 per cent increase when compared to the previous year.
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Source: SelfWealth (ASX:SWF) reports 9.5pc increase in active traders – The Market Herald
Source: https://australianfintech.com.au/selfwealth-asxswf-reports-9-5pc-increase-in-active-traders/
