The small cap online broker making more money from idle cash than trading
Despite being a share trading business, Selfwealth owes its first ever profit to cash in the bank.
The decline in retail investing is not necessarily bad news for trading platforms — at least if the experience of one ASX-listed business is anything to go by.
Selfwealth calls itself a stock trading platform but its full-year earnings earlier this month revealed the company's core business is no longer its main revenue driver.
While the ASX-listed company offers customers access to the Australian, US, and Hong Kong equity markets, Selfwealth made significantly more money from cash last financial year.
The low-cost broker brought in $29.4 million revenue over the last 12 months. But just $8.3 million of that was actually derived from trading equities. The figure is down 39% on the year prior amid a broader slowdown in ASX trading activity.
