Selfwealth (ASX:SWF) share price on watch following AGM

The SelfWealth (ASX: SWF) share price has flatlined in recent weeks. Could its AGM provide investors with much anticipated good news?

| More on:
man looking up as if watching asx 200 shares index such as VIX

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Selfwealth Ltd (ASX: SWF) share price has struggled to find its mojo lately after falling to a two month low. The investing platform has faced increasing challenges in recent times with growing competition from international players such as eToro and Stake, as well as new domestic platforms such as Superhero. Today, however, the Selfweath share price could be one to watch after the company announced the results of its annual general meeting (AGM) which could provide its investors with some potential much needed good news. 

Why the Selfweath share price is one to watch 

I'll be keeping an eye on the Selfweath share price today despite the fact that the company's AGM largely highlighted old news, including a recap of its outstanding FY20 performance. This included a 313% increase in revenue to $8.6 million, a 235% increase in active traders to 46,445 and $147,000 cash burn down from $3.4 million in FY19. This includes the June and September quarters being cash flow positive for the business. 

In what could be positive news for the Selfwealth share price, the AGM did provide some insight to the company's FY21 performance to date. This included the company achieving 60,000 active traders and $440 million in client cash as of October. These figures represent 29% and 20% respective increases on FY20 figures in just the first four months of the financial year. 

Selfwealth continues to take market share from its competitors and is currently ranked as the sixth most popular brokerage platform. 6% of all online investors use Selfwealth, up from 4% in December 2019. Interestingly, 11% of all online investors changing brokers choose Selfwealth. The company's main selling point has been its industry-leading, value for money brokerage fees, coming in at a flat $9.50 per trade. 

International trading 

Selfwealth will be launching United States trading in the December quarter. This highly anticipated move could position it as the home of US direct equities trading for Australian investors. The company intends to maintain its competitive brokerage fees of US$9.50 with no account fees or further commissions. It also intends to maintain a competitive foreign exchange spread of 0.60% when transferring to or from US dollars. This compares to banks and other competitors which can charge up to 1.00%. 

Platform enhancement 

Finally, the AGM concluded with commentary on potential enhancements that will be added over the coming 12 to 18 months. These could be good news for the Selfwealth share price moving forward and include: 

  • Platform-wide live pricing as a paid-for feature. This is the number one feature requested by clients. 
  • Increased independent stock research for both Australian and US equities. 
  • Enabling the creation of 'minor' accounts for parents wanting to invest on behalf of their children. 
  • Delivering unique initial public offering (IPO) opportunities to investors as well as access to capital raisings and the ability to trade options. 

Two-thirds of Selfwealth clients have indicated they would be willing to pay for additional features or services. 

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Shares to Watch

asx share price rebound represented by wooden blocks spelling rebound with coins on top
⏸️ Shares to Watch

Could the Zip (ASX:Z1P) share price make a comeback in 2021? 

The Zip (ASX: Z1P) share price struggled to outperform in the second half of 2020. Could 2021 be a better…

Read more »

⏸️ Shares to Watch

What next for the a2 Milk (ASX:A2M) share price?

Could you call the A2 Milk Company Ltd (ASX: A2M) share price a cheap growth stock after it slumped to…

Read more »

⏸️ Shares to Watch

What's in store for the Afterpay (ASX:APT) share price in 2021? 

The Afterpay (ASX: APT) share price has surged more than 275% in 2020. Here's a little of what investors can…

Read more »

wondering about asx share price represented by man surrounded by question marks
⏸️ Shares to Watch

Is the Zip (ASX:Z1P) share price a buy yet?

The Zip Co Ltd (ASX: Z1P) share price continues to underperform despite an exciting capital raising. Could it finally be…

Read more »

questioning whether asx share price is a buy represented by man in red shirt scratching his head
⏸️ Shares to Watch

Should you buy the Appen (ASX:APX) share price dip?

Could the Appen Ltd (ASX: APX) share price be a buying opportunity after its recent selloff? We take a look…

Read more »

Share Fallers

Why this broker thinks it's time to buy Qantas (ASX:QAN) shares

As state borders re-open to domestic tourism, this broker thinks it could be time to start buying Qantas Airways Limited…

Read more »

wondering about asx share price represented by man surrounded by question marks
⏸️ Shares to Watch

Could this be why the Zip (ASX:Z1P) share price is underperforming?

Could this be why the Zip Co Ltd (ASX: Z1P) share price is down 50% from its August highs and…

Read more »

Hands grabbing for high rung on a ladder pointing to the sky
⏸️ Shares to Watch

The Rhipe (ASX:RHP) share price has jumped 8% today. Here's why.

The Rhipe Ltd (ASX: RHP) share price has popped 8.59% after announcing its first quarter FY21 update. Here's the run…

Read more »