Traditionally Assets Management Companies are valued as a % of AUM (usually around 2.0%-2,5% of AUM).
Not sure this methodology is correct for Neo banks or Neo brokers.
For reference Robinhood is valued around 40% of AUM.
1 Like
Yeah Iām not suggesting the nascent platforms should be valued at 2-5% now, because clearly they are significantly growing their AUA.
To expand my point about earning potential, it seems most of the brokers are able to make around 50bps of revenue.
| Peer | Sales/AUA (bp) |
|---|---|
| AJ Bell | 20.99 |
| Interactive Investor | 42.28 |
| Hargreaves Lansdown | 46.57 |
| Nutmeg (est) | 50.00 |
| Trade Republic | 60.67 |
| Robinhood (Cash equities*) | 65.75 |
| flatexDEGIRO | 113.00 |
| Robinhood | 221.57 |
- RH is an outlier but if you strip out crypto then the cash equities business is much more inline.
I find it more realistic that the high neobroker valuations reflect an expectation of massive growth in assets rather than an expectation that theyāll be able to charge much more than their peers.
8 Likes
1 Like
Damn it! I was hoping Tiger might be looking at FT they love pumping up valuations!
1 Like
Iāve been using lightyear and it actually quite like it does anyone else have opinions on it?
Please donāt say things like that 
Iāve been playing around with Lightyear as well. The app has a decent interface and is pretty fast in use when converting from Ā£ to $ and also buying shares.
But until they have a much larger choice of shares to buy and ISA & SIPPs I donāt think they are a viable option for most people. They have been releasing regular app updates and Iām sure will improve their offering very quickly but my main account is staying with Freetrade.
1 Like
Interesting colour 
7 Likes
Their late to the party
2 Likes
When all else fails ā¦ blatantly copy another successful brand?
13 Likes
6 Likes
The article is in French but Lydia is quite big (4.5 million users at the end of 2020), theyāve raised a total of $160 million, they started expanding in a few European countries and theyāre launching trading + crypto
3 Likes
These āYouāre almost thereā emails from Lightyear arenāt a great look! (for accounts that have only partially completed the onboarding process). Two in two days is spam 
2 Likes
Yeah!!! I signed up to see the sign up number to post here and am now being spammed to death from them with those messages 
The lengths we go to give a number to our friends on the FT community 
1 Like
A Bulgarian commission free broker has added a new feature:
This highly requested feature is now live! You will now receive actual shares, instead of their cash equivalent, for events such as:
Mergers & acquisitions
De-mergers & spin-offs
Stock dividends
Hi all
New to the thread, is anyone using a good alternative to FT for ISA in trading the US momentum stocks?
I have a direct US brokerage account but would like something for my ISA and then in the long run my SIPP.
1 Like
Just got yet another reminder but notice there is a button to click in the small print at the bottom to stop getting reminders 
2 Likes
Just turned mine off - emailing everyday seems desperate
1 Like