The same trend is playing out in the USA. Retail broking firms...

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Mingchop

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12/05/20

07:17

Post #: 44563321
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Originally posted by danbradster: ↑

OpenMarkets has doubled revenue since December, hitting $1 million in March. TradeFloor, which has been funded by its two founders since making profits from its first year of operation in 2014, purchased half of OpenMarkets for $25 million in April.

SWF paid about $420k to OM for March brokerage. So this confirms that SWF is a big proportion of their income. $420k of $1m+. So <42% of their revenue as at March.

From my other numbers, I think SWF made up 46.6% of OM's trades in March.

But with intense competition in the industry pressuring margins, OpenMarkets needed an overhaul on costs and technology.TradeFloor slashed expenses by installing its own technology stack for order management and processing, and reducing the need for various external vendors. It also chopped salaries and the number of senior managers, further reducing the unit cost of trades.

They've cut costs and become profitable. This should make it more viable for them to offer better volume pricing to SWF.

OpenMarkets, founded in 2013, is one of the largest, independent retail brokers by volume with almost 60,000 clients.

Does this include SWF's 40,000 now? I'm not sure.

Software developer TradeFloor has acquired a controlling stake in OpenMarkets, after spending five months inside the retail stockbroker stripping out costs and updating its technology. Over this time, OpenMarkets' revenue has doubled and it has become profitable.

SWF also doubled quarterly trades in 6 months. Actually, more than tripled, if you compare March to 5 months earlier.

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The same trend is playing out in the USA. Retail broking firms are seeing a huge influx of new money and increased trading volumes. It’s a great time for SWF to be the lowest cost provider and also appealing to the millennial market.

SWF Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
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The same trend is playing out in the USA. Retail broking firms...

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