SelfWealth (ASX:SWF) share price on watch after achieving 100,000 active traders

SelfWealth has climbed up to number 4 in online stockbroking in Australia.

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The SelfWealth Ltd (ASX: SWF) share price could be a mover on Tuesday after the company announced two major operational milestones for its investing platform.

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Why the SelfWealth share price is on watch

SelfWealth revealed that it will achieve 100,000 active traders this week, up 5.1% from 95,189 on 30 June 2021.

The company says that its customer base is "highly engaged" and continues to translate into "high levels of new customer acquisition through member referrals".

In addition, independent market research firm, Investment Trends reported SelfWealth as the number four player in the online broking market in Australia.

SelfWealth believes that it can continue to drive future revenue growth from product development, underpinned by a growing customer base and track record of market share expansion.

Technology and product roadmap

SelfWealth has been changing a lot in the background, hiring heavily in tech and product teams to drive new features for its now 100,000 active traders.

According to the company's fourth quarter results and recent capital raising presentation, it is currently negotiating with several cryptocurrency exchanges to provide access to cryptocurrencies.

The company said that it wanted to be the "first investment platform to offer CHESS-sponsored share trading on the ASX, US trading and cryptocurrency access to Australian investors".

In addition, the company is looking to add additional international markets through its partner, Phillip Capital by the end of the year.

Why the SelfWealth share price has fallen off a cliff

The SelfWealth share price has tumbled 35% year-to-date despite its financial and operational achievements.

SelfWealth shares took an 11.96% tumble on 12 July following the release of its fourth quarter results.

Interestingly, the results flagged negative quarter-on-quarter growth for number of trades executed by clients.

Trade figures for the June quarter were ~357,000, down from a record high of ~514,000 in Q3 FY21.

Adding further insult to injury was a $10 million capital raising at an issue price of 39 cents on a 9.3% discount to its last closing price on 14 July.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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