Brokerage group Trading 212 recently updated its terms and conditions for order execution.
The latest terms and conditions show that the company is now using JP Morgan as a broker for executing equities trades.
When Trading 212 first launched its commission-free share trading product it was operating as something like a white label of Interactive Brokers.
The company still uses Interactive Brokers as one of its third-party execution venues.
However, the addition of JP Morgan is one sign of how the company has managed to develop its equities trading infrastructure over the last eight years.
Another feature of this is the fact the Bulgarian broker is now set up to operate as a systematic internaliser.
In practise, this allows the company to act as a market maker in cash equities for its own clients.
The decision to do that was probably driven by the broker’s own pricing model.
Given that there are no dealing or account fees, the company will have been pushed into looking for alternative methods of monetising that business.
