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.
