To enter the German market, Trading 212, a cash equities and CFDs provider, acquired FXFlat Bank GmbH. This acquisition is to provide German investors with access to Trading 212 zero-commission stock brokerage service and is expected to disrupt the traditional brokerage model in the UK and Europe.
Expansion Plan of Trading 212
The acquisition of FXFlat Bank GmbH is a big step for the CFD provider. Being a brokerage firm that offers commission-free trading, UK and European residents are well familiar with the company. This recent acquisition therefore allows the company to carry out its business in Germany through a fully licensed German entity.
The two are working to rapidly launch the company’s trading and investing platform in the German market. At this stage of the transition period, FXFlat will stop onboarding new clients but will continue with client services.
Statement from the FXFlat team
FXFlat Bank GmbH stated that it had been acquired by the UK and European-based Trading 212 Group Limited, which is a fast-growing fintech company offering commission-free trading in the UK and Europe. This is a new chapter for us as it opens the path to deliver Trading 212 value and user experience to German investors via a fully licensed German entity.
For 2021, the CFD provider got the Cyprus Securities and Exchange Commission’s approval for a crypto asset service provider license. The license was given to Trading 212 Crypto Ltd in May, this is a separate entity from Trading 212 Markets Ltd.
Plans of Scaling Business Globally
The CFD company has added a multi-currency payment card for UK customers joining forces with Paynetics, an e-money service provider. The card provides for cash back at a rate of 1. Up to September, it is 5%, and then it is 0. 5%.
Also, the London-based brokerage company is to launch card services in the UK under the brand name 212 Card. This card is compounded daily with an annual percentage yield of 5% and offers a cashback reward of 0—up to 5% of the amount which is up to £20 per month.
The cards of Trading 212 allow the conduct of transactions worldwide with a foreign exchange commission of 0. No charges over the weekend and only 15%. This feature helps the users in performing international transactions. Established in 2004 in Bulgaria as Avus Capital, the company rebranded to Trading 212 when it was incorporated in the United Kingdom in 2013.