Exclusive: Monex Europe’s Profit for 2018 Fell 25.1% YoY

Monex Europe, a specialist in commercial foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), has provided Finance Magnates with its financial statement for the year ended December 31, 2018, this Tuesday.

The forex-focused firm has established itself as a leading niche provider of commercial and deliverable FX. Despite 2018 being a tough year for the FX industry, particularly in the second-half, Monex Europe still managed to report a solid performance, although most of its key financial indicators are lower on a year-on-year comparison.

Specifically, operating profit for the 2018 financial year was £11.21 million. When measuring this against the previous year, which had an operating profit of £14.69 million, it is lower by around 24.4 percent.

Profit for 2018 fell by 25.1 percent year-on-year to reach £8.98 million. Profit before tax came in at £11.21 million. Although still a solid figure, it is lower than that achieved in 2017 by 23.67 percent.

Group net trading during the year was above £61.8 million. When measuring this against the net trading achieved in 2017, which was £68.3 million, it is lower by 9.5 percent.

Monex Europe’s financial results reflect an industry-wide trend. Following the implementation of the European Securities and Markets Authority’s (ESMA) product intervention measures, many brokers within the EU have reported lower trading volumes, and as a result, lower profits and revenues.

Speaking to Finance Magnates, Nick Edgeley, Managing Director of Monex Europe, said: "It's been another strong year for Monex Europe, generating pre-tax profits of £11.2m. Our concentration has been on expansion, with a doubling of our London office space."

"It's been especially exciting to announce the opening of our new offices in Singapore and Luxembourg. This will allow us to increase our activities in some of the world's most vibrant markets and provide a more expansive service to clients. We're all looking forward to the year ahead."

Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term Uncertainty Continues into 2019 for Monex Europe

Not only have companies within the EU had to deal with tightening regulation, but also the looming threat of Brexit. In its report, the company highlights a number of ways that Brexit could harm investments - instability of the Eurozone, weakening of the British pound and potential harm to the UK’s economy, among other issues.

Monex Europe - not to be confused with the Japanese company which is also named Monex, was previously known as Schneider Foreign Exchange. However, in July of 2012, Monex S.A.B. (also known as Monex Group) acquired the firm and then renamed it to Monex Europe Ltd.