Emerging online broker SelfWealth (ASX: SWF) has kicked off 2020 with aplomb after announcing a material increase in business throughout the month of January.
In the first month of this year, SelfWealth attracted 1,741 new active traders to its platform while the monthly inflow of cash deposits pushed up client cash balances up to $163 million.
One of the most business-critical metrics for all brokers is monthly trading volumes. In January, SelfWealth recorded monthly trade volumes of 32,934 trades – 15% higher than the previous record month.
In total, the online broker reported that it had generated record monthly revenue of $480,660 in January and is hopeful of achieving profitability later this year.
The SelfWealth story
SelfWealth was founded in 2012 and come to the market offering brokerage services to Australian clients seeking to invest in the equity market.
In 2016, it introduced a flat fee share trading platform while its strong performance pushed the company to become one of Australia’s fastest-growing brokers.
The broker claims to lead the broking industry courtesy of its $9.50 flat-fee brokerage for retail and advised investors while adding value to investors via what it calls a “community-driven insights tool” that pools information from over 80,000 Australian investor portfolios.
Most recently, SelfWealth launched an ASX-listed exchange-traded fund (ETF) that leverages its community-driven same data, called the SelfWealth SMSF Leaders ETF. The fund aims to outperform the market benchmark using a world-first ETF construction method, according to the company.
Additionally, the new fund serves as a growth investment option intended to complement existing Australian equities. The ETF draws on a concentrated selection of up to 75 ASX-listed stocks that track the performance of a benchmark fund called the SelfWealth SMSF Leaders Index.
To demonstrate its approach to the brokerage market, SelfWealth describes itself as an “online community for investors, partnering to achieve a common purpose of better returns”.
In a statement to the market, SelfWealth said it experienced a further increase in its already robust growth rate of new customers which has led to “record results in all business metrics” for the company.
“We flagged in our most recent quarterly 4C and Business Update announced to the market on 13 January that we were confident of achieving increasing volumes in the first quarter of 2020,” said Rob Edgley, acting chief executive officer of SelfWealth.
“What we have seen has been significantly stronger growth than we were expecting during January which is a month where many people are on summer holidays.”
“The increasing rate of growth in new customers leads us to believe that further growth in revenues over the coming quarters will accelerate the company towards its goal of reaching profitability,” said Mr Edgley.