London-based online broker Trading 212 has acquired FXFlat Bank GmbH, a multi-asset broker based in Germany and regulated by BaFin. The financial terms of the deal have not been disclosed.
FXFlat Bank GmbH announced the news in a statement on its website: “We’re thrilled to announce that FXFlat Bank GmbH has been acquired by Trading 212 Group Limited (‘Trading 212’), one of the fastest-growing fintech companies in the UK and Europe and a pioneer in zero-commission investing.”
The broker said that their “combined teams” are working to launch Trading 212’s trading and investing platform soon. During this transition period, FXFlat will temporarily pause onboarding new clients, but will continue to provide support to existing clients as usual.
Trading 212 currently operates in Germany via Trading 212 Markets Limited.
“This acquisition marks an exciting new chapter, as it allows us to bring Trading 212’s exceptional value and user experience to German investors through a fully licensed German entity,” the statement reads.
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Founded in 1997, FXFlat Bank GmbH is a German-based financial services provider regulated by BaFin. The broker provides access to trading in various asset classes, including forex, CFDs, futures, stocks, options, bonds, ETFs, and mutual funds across 135 global exchanges.
Trading 212 was the first retail UK broker to offer commission-free trading and its core product portfolio consists of stocks, ETFs, FX, and derivatives products.
In terms of CFD products, the company operated from January 2021 to May 2021 on a spread revenue model, profiting from the difference between the prices offered to clients and those on which hedging trades were conducted via a back-to-back hedging agreement with a group affiliate.
From May 2021 onwards, T212 opted to end this arrangement to manage its own risk based on defined parameters for each product and asset class, hedging exposures outside of these with third parties.
Earlier this year, Trading 212 Crypto Ltd, a newly-formed crypto subsidiary, was granted Class 3 registration which allows the platform to offer spot, custodian, staking and card services.
Operating under the CySEC umbrella allows Trading 212 to leverage its new regulatory profile to expand its services into the European Markets. Launching a service under the CySEC license will also provide users with a regulated platform to work with digital asset-based investments.
