Trading 212 earns income through three main channels: its hybrid market maker broker model, commissions and spreads on CFD trading, and a range of non-trading fees, such as overnight charges and deposit fees for amounts exceeding $2,000.
Trading 212 may act as a counterparty for certain trades, and in case of traders’ losses it earns money. CFD trading is a major contributor to Trading 212’s revenue, as users pay spreads and commissions when opening and closing positions. Trading 212 impose overnight fees for positions held beyond market hours and a 0.7% fee for deposits over $2,000 made through non-bank transfer methods.
In 2023, Trading 212 recorded £116.1 million in revenue, showing a modest recovery from the previous year. Revenue peaked at £138.7 million in 2021, driven by a retail trading surge, before dropping to £114.9 million in 2022.
How Does Trading 212 Make Money?
Trading 212 generates its revenue through three main streams: its role as a hybrid market maker broker, commissions and spreads on CFD trading, and non-trading fees such as overnight charges and fees on deposits exceeding $2,000.
As a hybrid market maker broker with No Dealing Desk (NDD) service, Trading 212 facilitates trading by creating an internal market where traders’ orders are either matched internally or netted against other traders. In this setup, Trading 212 may act as the counterparty to trades, meaning that when a trader loses, the broker could theoretically gain. However, the reality is far more complex, as market oscillations can result in both traders winning or losing simultaneously, depending on how and when they close their positions. This process ensures that Trading 212 doesn’t automatically profit from a trader’s losses.
Trading 212 charges spreads and commissions when users trade CFDs. When opening and closing a CFD position, traders pay a commission alongside the spread (which is the difference between the buy and sell price of an asset). Traders at Trading 212 can choose between accounts offering fixed or floating spreads, where fixed spreads remain consistent providing predictability in trading costs, and floating spreads are adjusted dynamically with market conditions offering lower costs.
Unlike many brokers, Trading 212 does not charge inactivity fees, provided the account retains some funds. However, other non-trading fees include overnight fees with positions held open past the daily market closing incur small fees, and deposit fees of 0,7% with deposits exceeding $2,000 through methods other than bank transfers.
How does Trading 212 make money without commissions?
Trading 212 does not earn revenue directly from trading commissions on its commission-free accounts, such as the Trading 212 Invest Account. Instead, Trading 212 profit or incur losses depending on customer trading activity. Commission-free stock trading is generally a less risky and less significant source of income for the company compared to CFD trading.
Even though commission-free trading is a key draw for customers, Trading 212 benefits indirectly through various other fees, including spreads, overnight fees, deposit fees and currency conversion fees.
The commission-free trading service provided by Trading 212 is actual stock trading. Other products and account types have various fees. To gain access, you will have to open a Trading 212 Invest Account dedicated to trading stocks. With this account, you will have over 3,000 stocks across seven international exchanges, as shown in the image below.
It’s important to note that not every stock offered by Trading 212 is commission-free. For these, Trading 212 generates revenue just like any traditional broker, through spreads or commissions. However, the revenue generated from other trading products, such as CFDs, allows the company to support commission-free stock trading for many users.
What is the Trading 212 revenue?
In 2023, Trading 212 reported revenues of £116.1 million.
The table with the Trading 212 revenue per each year is shown below.
| Years | Trading 212 Revenue (Million GBP) |
|---|---|
| 2023 | 116.1 |
| 2022 | 114.9 |
| 2021 | 138.7 |
| 2020 | 54.3 |
| 2019 | 2 |
Trading 212 experienced record revenues in 2021, peaking at £138.7 million due to the surge in retail trading activity and the growing popularity of the platform. However, Trading 212 reported a significant drop in revenue in 2022 (-17% from £114.9 million). In 2023 Trading 212 experienced a slight rebound, increasing its revenue to £116.1 million, which represented a modest improvement over the prior year.