Hargreaves Lansdown Group  

Share trading boom boosts Hargreaves profits

Share trading boom boosts Hargreaves profits

Hargreaves Lansdown expects its pre-tax profit for the year ending June 30 to be above expectations because of a surge in share dealing during lockdown.

In February the platform reported a surge in new clients in the second half of 2020, as the platform continued to cash in on the coronavirus trading boom.

In a trading update published this morning, the FTSE 100 company said this trend had continued into 2021, with “elevated volumes” of share dealings, leading to a period of "very strong growth".

Hargreaves said this share dealing was increasingly directed towards international equities, driven by interest in US stocks from existing clients.

Many retail investment platforms have done well during coronavirus pandemic, as rookie users have turned trading in shares to pass the time.

Some of them have been exchanging tips and advice on forums such as Reddit, which in part led to the Gamestop debacle.

Earlier this year Gamestop shares rose in value from $20 to $350 in a couple of weeks - before crashing back to $40 - as retail traders using Reddit bought the stock in an attempt to harm the short sellers who had bet against the US video game retailer.

Hargreaves is expected to provide further information when it produces its scheduled trading update on May 13, 2021 for the four months to the end of April. 

In February, Hargreaves reported assets under administration grew by 15 per cent over the course of 2020, reaching £120.6bn.

This fuelled a 10 per cent increase in half-year profits to £188.4m.