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SWF - SelfWealth Limited

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So_Cynical

The Contrarian Averager
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Floated in late 2017 at 20c per share and has traded under that price ever since, the % growth in revenue and clients is somewhat spectacular however they need it to be even more spectacular as they burn over a million dollars per quarter and only have 5 million in the bank.

SelfWealth has the cheapest Chess sponsored trades in the country with flat rate brokerage at $9.50 per trade, the platform looks clean and straight forward and has a social media edge to it as members can see what stocks others hold and compare their own results with other users and indexes etc.

A rampish discussion thread can be found here: https://www.aussiestockforums.com/threads/selfwealth-trading.31213/

They have a tie up with SMSF cloud software provider BGL: https://www.bglcorp.com/
BGL's simple fund software is used by 70% of SMSF's ~ they plan to offer an ETF for SMSF's based on the best performing portfolios, a one simple investment type of thing, a managed ETF.

I can see potential as people want low cost brokerage and the site is clean and easy on the eye and i like the helpful and competitive edge to the social media side of it, the average account balance is about 100K, i suppose its a matter of what price they will raise capital at and when self funding can be achieved, MC of 18 Million, trading at 0.135
~
 
So_Cynical said:
the % growth in revenue and clients is somewhat spectacular however they need it to be even more spectacular as they burn over a million dollars per quarter and only have 5 million in the bank.
Click to expand...

Another quarter and now they have 3.3 million in the bank, the growth has continued along with the cash burn resulting in the share price visiting 10c over the last week. The outlook with many of the banks looking to get rid of their broking and advise businesses should see competition increase in an already low margin industry, i just cant see where the needed profit growth is going to come from.
 
I bought a small parcel last week @ 9.5c - bought on the basis that it's cost leader in stock broking & rolling out a variety of different products - was a bit disappointed to see it trade @ 8.4c last week but am planning on holding for the long term.

I see big potential in the business model - I'm hoping revenue continues to grow at a similar pace to the past 2 quarters.
 
05/03/2019 - SWF closes out shortfall raise and secures 1.235 million

Turnaround?

 
As Australian based lowest cost stock broker at A$9.50 per share trade, this company is on a rapid customer (investors/traders) acquisition path. Has been in a down-trend ever since listing, but may have turned the corner...
 
I bought another parcel for 16c on Friday, sitting on a small gain at the moment. The momentum is good. I really hope they do keep their eye on the ball i.e. keeping the costs low as that really is there primary advantage compared to other brokers imo as any existing broker is not going to want to give up their margins until it's too late.

I understand there are features missing that serious traders won't compromise on but for the majority of retail investors/traders, this should be your buy/sell platform.
 
Picking SWF for the October 2019 tipping competition.

It's had a good run so far this month in anticipation of the September quarterly results which as mentioned earlier this month in an announcement had already exceeded last quarters # of trades in 2 months. Expectations are building but I think they'll still beat.
 
Entered as one of the top picks for CY2020 competition. Australia's lowest cost CHESS sponsored stock broker, growing at a rapid rate:


Traditional brokerage firms have been lowering their rates recently to be more competitive in the online share trading space but haven't been able to match or beat the market leading stock brokerage of $9.50 per trade offered by Selfwealth. Client numbers have been growing rapidly for Selfwealth (see below) and I think will continue to do so as investors and traders look for lower cost, locally based, CHESS sponsored brokers where the shares bought will actually be registered in their name with a share certificate from ASX.


Management planned the listing of ‘SelfWealth SMSF Leaders ETF’ to be listed on the ASX in 2019:


They've kept their promise and listed it, now trading as ASX: SELF.

Further innovations are likely as well as organic client growth.
 
CBerg said:
@aus_trader I like your pick for the 2020 competition.
View attachment 100114

If client growth & trade volumes continue at the 20-30% rate they're achieving, I think they'll be profitable before the end of the year.
Click to expand...

Well spotted CBerg, yes the underlying growth continues which is not reflected in the share price.

I think this is a disruptive little company that has a fantastic opportunity to become a future leader in the stockbroking and trading space. What they are doing is already impressive in terms of achieving rapid growth as the lowest cost Aussie online stockbroker.

If they can improve their product offering going into the future and really show the other brokerage firms what they are made of, there could be mass adoption of SWF product offering which might happen rapidly once the word gets out.

I think (unless we are somehow special here down-under) you don't have to pay ridiculous fees to trade international shares within Australia or to pay 'ball cracking' absurd fees like $34.95 per options trade while in the US and other developed nations it's like $5 bucks. If Selfwealth can bring these rip off fees down to reasonable levels in Australia, I think masses will migrate to it's platform and it'll be the lion in the brokerage jungle.

Early days but watch this space...
 
I looked back to see any comments from actual users and not sure if there are any (cberg was a maybe but I am unsure).
As a user for more than 3 years I find the interface very juvenile but slowly maturing. Content is "somewhat" available. Prolly depends upon the users awareness of what is missing.... it is cheap (and chess).
 
I use it to execute trades, research is done elsewhere.

It is basic but I think the majority of users are ETF/index buyers so research is of little use to that market. Keeping costs low is why they're popular, they shouldn't lose sight of that. They emailed me yesterday and one of the tidbits was they're going to spend time this year updating the iPhone/Android apps.
 
They stated they plan to bring international trading to the platform this year which is certainly interesting but I think margin lending would be a bigger revenue driver for them tbh. I can somewhat understand higher fees for international trading given they're doing the leg work of registering, custody & FX of international trading, not saying the fees of other platforms are reasonable but I don't think they'll manage to bring it down to $9.5 flat fee either.
 
Since reentering the market a couple of years ago, I have only used Selfwealth, so I can't compare it against other sites but it's way better than the old ring the broker days.

I only use the site to buy or sell, not research or any other things offered.(Maybe price checking)

I haven't had any problems and would recommend it to others.

I considered IB recently as SWF has no US market access, but SWF is chess and IB isn't.

I am considering a small holding in SWF.
 
comment: the chess has no relevance to OS. I use 4 brokers for reasons such as that (each has strengths). I also have had nil issues with self wealth.

cberg, same same. The little pictures annoy the crap out of me so after 3 years I actually do not know if they even have charts. I just do my bigger trades there to save coin. Not a place I spend time at.
 
Yes I agree it could be a little higher than ASX stock brokerage, but could still be cost competitive compared to the traditional brokerage firms here.

Thanks for the info. I am considering opening a SelfWealth brokerage account myself, while keeping the current brokerage account. That way I can bring my trading costs down further.

Have held SWF recently in the Speculative Stock Portfolio, and armed and ready to get back in. Also one of my picks for the CY2020 stock picking competition.

HelloU said:
I use 4 brokers for reasons such as that (each has strengths).
Click to expand...
Could you kindly summarise the strengths of each of the 4 brokers for us HelloU?
 
I put some rambling thoughts on https://www.aussiestockforums.com/threads/negotiating-brokerage-fees.35188/
What else:
Some brokers let you talk to staff (traders) in singapore and UK after the aussie help lines close.
IG do $8, IB do $6
I find the number of accounts is directly proportional to the amount of my life I waste at my desk.
NAB do premium, Comm do CommsecOne etc that may suit peeps.
FP do "specials".....

Sorta like buying a car....... you have to start with a list of what you need it to do. It does not matter what others want in a car.
 
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