flatexDEGIRO’s strong growth outlook for 2022 follows another record year in 2021
“After an exceptional start into the year, which allowed us to raise our initial guidance twice, we have demonstrated a very solid performance and fully met the guidance given nine months ago.”
flatexDEGIRO has announced a strong growth outlook for 2022 after another record year in 2021, with customer accounts growing to 2.06 million customers, an increase of 55% from 1.33 million customer accounts in 2020.
As to customer retention, the rate of 97% points to high customer loyalty as they engaged in 91 million transactions in 2021 (+21% versus 2020).
Customer accounts expected to grow 30-40% in 2022
The leading retail brokerage firm in Europe has said its growth expectation for 2022 is to reach 2.7 – 2.9 million customer accounts, an increase of 30-40% from 2.06 million customers currently.
flatexDEGIRO expects to execute 95m to 115m transactions in 2022, which at best would signal an increase of 26% versus the 91 million transactions in 2021.
Management bases this expectation on conservative assumptions regarding this year’s market volatility, resulting in an average customer trading activity of approx. 40 to 45 transactions (compared to approx. 55 in 2021).
Frank Niehage, CEO of flatexDEGIRO: “In 2021, we have marked another record year. Even more important, we have also laid the foundations for future exponential customer growth. We have invested heavily into IT to offer highest stability and security on our platform, while further enhancing the usability and relevance of our trading app with the launch of ‘next 3.0’.
“We have expanded trading opportunities for our DEGIRO customers with early and late trading and our unique product partnerships with global leading investment banks. On top, we have optimized our pricing structure, including zero commission trading for key products and markets, to further retailise capital market access. Together with a strong push for educational marketing, this unmatched combination of best-inclass platforms, products and prices will drive our exponential growth over the years to come, allowing us to support 7 to 8 million customer accounts by 2026.”
Muhamad Chahrour, CFO of flatexDEGIRO and CEO of DEGIRO: “After an exceptional start into the year, which allowed us to raise our initial guidance twice, we have demonstrated a very solid performance and fully met the guidance given nine months ago. The last quarters were characterized by rather average market volatility, the absence of external drivers like at the beginning of the year.
“Nevertheless, we continued to grow structurally our customer base in this normalized environment much faster than any of our direct peers. Just the continuation of this trend would already bring us to the lower end of our account growth guidance in 2022. However, given the multiple growth measures we took in 2021 to improve our customer experience and product offering, I am very confident that these actions will support a significant acceleration of our customer account growth.”
Growth markets in France, Spain, Portugal, Italy, Switzerland, Ireland, and the UK
flatexDEGIRO is serving retail investors in 18 European countries, with Germany, the Netherlands and Austria being its core markets, while its growth markets are France, Spain, Portugal, Italy, Switzerland, Ireland, and the UK. Denmark, Norway, Sweden, Finland, Poland, Hungary, Czech Republic and Greece are grouped within Research Markets.
In 2021, the highest absolute number of new customer accounts (+408,000) were added in Core Markets (+46%), while the Growth Markets showed the highest relative growth (+75%), adding 285,000 new customer accounts. flatexDEGIRO’s Research Markets reached crossed the 100,000 customer accounts threshold (+67%).
flatexDEGIRO has plans to continue its online brokerage strategy, which means off-boarding approximately 20,000 non brokerage customers in the first quarter of 2022. The broker is currently home to 41,000 non-brokerage customers, an insignificant amount