ActivTrades Posts £12.8m Profit in 2016, Commits to Continued Investment

London-headquartered Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term brokerage ActivTrades has published a filing with UK Companies House that reveals another positive year for the company. Last year the brokerage posted a rise in profits by a third to £12.8 million ($16.5 million). As of December 31st 2016 the capital of ActivTrades PLC stands at £39.5 million ($50.9 million).

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The news comes as the brokerage marked an increase in turnover totaling 11 percent to £34.9 million ($45 million) last year. During the same period, the company also decreased its administrative expenses by 6 percent to £15.4 million ($19.8 million).

According to the company's year end report for 2016, ActivTrades is aiming to continue the expansion of its operations and will focus on growing outside of its core geography in Europe.

Key Performance Indicators

During 2016, ActivTrades identified 73,500 potential clients, managing to onboard 9,544 to fund accounts with the firm. As of the end of last year, a total of 12,000 clients of the brokerage have been actively trading on a monthly basis.

Net deposits last year increased 35 percent when compared to 2015 to a total of £45 million ($58 million). The company acknowledges that some of the increase is due to the decline in the value of the British pound as most of its clients are depositing in euros and British pounds.

Client trading volumes throughout 2016 increased by 29 percent due to increased client numbers and Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term across the markets.

ActivTrades states that 46 percent of its new clients came outside of the European Union, however when it comes to revenue, the share dropped to 23 percent. New clients from the UK represented 4 percent.