CommSec’s profits soared 36% to $156M as market volatility sent Aussies trading in droves, boosting its user base to 3 million.
Background: CommSec is the online stockbroking arm of CommBank, Australia’s largest bank. It’s also the country’s most popular trading platform, with over 40% of Australian investors using it. Basically, if you’ve ever searched “how to buy ETFs,” chances are you’ve landed on CommSec.
What happened: Last financial year, CommSec reported revenue of nearly $289 million, with profits jumping 36% to just under $156 million. Despite facing increased competition from new low-cost trading apps, CommSec’s customer base surged 37% to hit 3 million users.
What else: The company credits the growth to heightened market volatility, with retail traders swooping in to grab bargains when stock prices dip.
What's the key learning?
💡When market volatility spikes, trading volumes soar…and so do broker profits. Every sharp price swing triggers more buying and selling activity, and more transactions mean more revenue for trading platforms like CommSec.
💡High volatility tends to lure in retail traders hoping to profit from big price swings, but it also heightens risk on both sides.
💡With the S&P 500 up 85% and the ASX 200 up 40% since 2022, more investors are entering the market, helping platforms like CommSec cash in on every trade.
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