Key Financial Indicators Comparison: Trading 212 UK vs NAGA
A number of forex brokers have released their financials for the year of 2021. By analyzing these written records that convey the business activities, traders can find out each broker's profitability and operation in the past year.
Through analysis, we find that two forex brokers stand out as they witnessed rapid growth in trading metrics compared with 2020, i.e. Trading 212 UK Limited ("T212") and NAGA.
T212 is a London-based FCA-regulated online broker offering trading services with forex, company shares, and CFDs; while NAGA is a provider of the social network for trading, cryptocurrencies and payments.
A Brief Comparison in Key Financial Indicators
The rapid development of T212 and NAGA coincided with surging trading volume in the forex market when COVID-19 pandemic became more rampant.
As you can learn from the chart, revenue for T212 came in at £55.9M (€67.08 M), 107% higher than 2020's £26.9 M. That number for NAGA more than doubled to around €55.3 M compared to the previous year's €24.4 M. The latter has lower total revenue but higher growth rate than the former. NAGA attributes this strong growth to the ever-increasing copy-trading activity, according to the official press release.
Moreover, T212 registered a 107 percent YoY increase in net profit, bring the total figure to £45.2M (€54.24 M) (2020: £21.8M). While net profit for NAGA jumped from €2 M in 2020 to €8 M in 2021.
Additionally, T212's EBITDA totaled £94.1M (€112.9 M), representing an increase of 73.2% compared to the same period in 2020 (£54.3M). NAGA closed the period with a EBITDA of €12.8 M, up 93% than the previous year (2020:€6.5M).
It can be seen from the above that among these three important indicators, T212's figure is much higher than that of NAGA. However, NAGA enjoys a higher growth rate on a YoY basis.
Different Strategies
Launched in 2013, T212 operates both a CFD and a stockbroking platform to clients predominantly resident in the UK and the EU. It was the first retail UK broker to offer commission-free trading and its core product portfolio includes stocks, forex, ETFs and derivatives products. The broker said that it will continue to shift focus towards stockbroking.
NAGA, founded in 2015, boasts years of experience as a market maker. Currently, it does not offer services to residents within the European Economic Area, excluding Belgium and the United Kingdom.
On March 2022, NAGA launched its brand-new social trading platform NAGAX focused on cryptocurrencies. Shortly after the launch of NAGAX, the broker will release its NFT as well as Staking platform under the label "NAGA Earn". The company expects that the focused crypto division will be able to generate more revenue than the existing brokerage business in the next 18 to 24 months, said its founder and CEO, Benjamin Bilski.
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