Following two years of spectacular growth and a rebuild of its management C-Suite, London and Bulgaria based online brokerage Trading 212 Group Limited has released its financial statements for 2022 indicating a slowdown in activity, as the company halted the onboarding of new clients for a good portion of the year, and restructured its EU operations.

Overall, Revenues at Trading 212 came in at £114.9 million in 2022, down 17% from the record £138.7 million Trading 212 saw in 2021. We’d remind FNG readers that revenues at Trading 212 increased more than 4x from 2019 to 2020, as the company’s zero commission pricing structure, fractional share offering, and T212 mobile app proved to be extremely popular with the tech savvy demographic.

On the bottom line Trading 212 profits dropped by 52% to £34.2 million in 2022, from £71.6 million in 2021, as Admin expenses continued to rise as Revenues fell, coming in at £75.6 million for the year, versus £57.0 million in 2021.

As noted above Trading 212 had made a number of significant senior hires leading up to the 2022 fiscal year in totally reworking its management C-suite, which began with the hiring of CEO Mukid Chowdhury from Tickmill in May 2021, as was exclusively reported at the time here at FNG. Other hires at Trading 212 include COO George Mantilas, and CFO Philip Parsons.

Trading 212 Group Limited is a financial holding company that operates through its principal subsidiaries. As of 31 December 2022, the company had three principal subsidiaries, namely:

• Trading 212 UK Limited (registered in the United Kingdom and regulated by the Financial Conduct Authority).
• Trading 212 Limited (registered in Bulgaria and regulated by the Bulgarian Financial Supervision Commission).
• Trading 212 Markets Limited (registered in Cyprus and regulated by the Cyprus Securities and Exchange Commission).

Regarding the breakdown in Group revenues in 2022 between the different entities within the Trading 212 Group:

A period of exceptional growth, as noted above, led the T212UK Board to voluntarily and temporarily pause onboarding and reflect on the firm’s strategy and operating model, including the current systems, capacity, and controls in place at Trading 212, to ensure that they remain appropriate for the size and scale of the growing business. That process was completed during 2022 with improvements made in each of the aforementioned areas.

Following completion of this work, onboarding of new clients commenced in August 2022, with 165,968 unique customers onboarded between 1 August 2022 and the year end. Meanwhile, T212CY onboarded the total of 424,281 new clients during 2022.

The group operates segregated client money bank accounts and client transaction accounts. As at 31 December 2022, the total balance of these accounts was £306.7 million (2021: £298.5 million).

Trading 212 is controlled by Bulgarian entrepreneurs Borislav Nedialkov and Ivan Ashminov. The company’s 2022 income statement follows: