- SelfWealth (SWF) welcomed 14,132 active traders to its platform in the June quarter — a 44 per cent quarter-on-quarter increase
- The company also achieved $809,000 in operating cashflow, which is largely due to its end of financial year SelfWealth Premium offer
- Clients were encouraged to subscribe to the annual plan to score 15 free trades
- Additionally, operating revenue was up 101 per cent quarter-on-quarter to reach $4.18 million
- SelfWealth ended the quarter with no outstanding debt and $5.26 million cash in the bank
- Furthermore, SelfWealth aims to launch U.S. equity trading later this year and hopes clients will open a U.S. trading account
- Company shares are up 9.62 per cent and are trading for 57 cents each
SelfWealth (SWF) has welcomed an influx of new clients on its retail trading platform for the June 2020 quarter.
SelfWealth is a securities brokerage company and claims to be the cheapest online broker in Australia, with a competitive fee of $9.50 per trade.
New clients
Essentially, new customers complete an application to set up a trading account which will allow them to trade shares through the SelfWealth platform.
“Ultra-low interest rates globally and the digitalisation of investment markets have led to large numbers of new investors in the share market, particularly amongst the Millennial and Gen Y demographic,” Managing Director Rob Edgley said.
SelfWealth reported an additional 14,132 active traders joined its platform during the June quarter. This represents a 44 per cent quarter-on-quarter increase with total active traders sitting at 46,445 as at June 30 2020.
The increase of active traders has led to six consecutive record months in trade volumes during the first half of the year.
“In further good news, the increased client numbers and activity levels have resulted in the company’s first-quarter of positive cash flow from operating activities in its history,” Rob added.
Financials
SelfWealth achieved $809,000 in positive operating cash flow for the June quarter, with each month contributing positively. Each month contributed to the achieved amount, however, June was particularly outstanding. This is due to SelfWealth’s end of financial year SelfWealth Premium offer.
SelfWealth Premium was a promotion where clients could subscribe to the annual plan for SelfWealth Premium to score 15 free trades valued at $142.50.
The annual plan is $240 but would total $382.50 with 15 trades included.
The subscription is tax-deductible, as long as customers generate an income from share trading.
Additionally, operating revenue was up 101 per cent quarter-on-quarter to reach $4.18 million. Quarterly trade volumes reached 340,000, which is a 112 per cent quarter-on-quarter increase.
As of June 30, SelfWealth’s net cash position of $5.26 million and it ended the quarter with no outstanding debt.
Product and technology update
SelfWealth is working with its partner, Phillip Capital, to prepare the technology required for the launch of U.S. equity trading in the December quarter.
SelfWealth customers are encouraged to open a U.S. trading account with their existing membership over the next few months.
The company has commenced a new project aimed at delivering a brand new mobile app for both iOS and Android. The app is set to improve the trading experience for existing clients. SelfWealth also hopes the app will attract new clients, especially in the younger demographic.
Company shares are up 9.62 per cent and are trading for 57 cents each at 1:22 pm AEST.