Forex moves caused Swissquote to report a one time loss of $21M because of Swiss franc volatility, but how else did the forex unit perform.
Last week Swissquote announced its H1 2015 financials. For the period, bottom line profits swung to a loss of $10.97 million (CHF10.6M) compared to a profit of over $11.38 million (CHF11M) in the same period in 2014. The culprit was a $21.2 million (CHF20.5M) one-off loss attributed to covering negative balances following the January 15th Swiss franc Volatility.
Today we take a closer look at the broker’s Forex unit which contributed a large part to the firm’s realized losses. Since acquiring MIG Bank in September 2013, Swissquote’s forex business has become a greater part of the overall broker’s business, composing 36.1% of the firm’s revenues in H1 2015. In addition, with a strong end of the year, Swissquote was able to surpass $100 billion in monthly volumes during Q4 2014.
Accounts and clients assets
As seen in the chart above, Swissquote experienced a steep decline in client assets within its forex division. During the half year, client assets ended at CHF189.9 million versus CHF 241 million at the end of 2014. The 21% decline can be attributed in part to client losses suffered on January 15th. In addition any client accounts denominated in currencies other saw their value depreciate against the Swiss franc during the quarter. Overall, the decline in client assets was specific to Swissquote’s forex division.
With client assets falling to their lowest level since Swissquote’s acquisition of MIG Bank, number of accounts added grew by the highest amount in that same period. During H1 2015, 1,926 new accounts were added compared to less than 1000 during both H1 2014 and H2 2014.
Volumes and revenue capture
One the downside, trading volumes fell during H1 2015 compared to H2 2014. During the period, Swissquote averaged $81.7 billion in monthly volumes. The figure was well offer the $110 billion mark for Q4 2014, and the $96.1 billion monthly average for all of H2 2015.
On the bright side, according to Swissquote, revenue capture per million dollars traded (DPM) increased to $60.5. As seen in the chart above, DPM had been decreasing in the aftermath of Swissquote’s acquisition of MIG Bank. The decline isn’t surprising given the low revenue capture MIG Bank had experienced in 2012 and 2013, which ultimately led them to become a takeover candidate. Looking ahead, it will be interesting to see how much improvement in DPM Swissquote is able to achieve and whether it can climb back to the $70 to $100 level recorded prior to the acquisition of MIG Bank.
Last week Swissquote announced its H1 2015 financials. For the period, bottom line profits swung to a loss of $10.97 million (CHF10.6M) compared to a profit of over $11.38 million (CHF11M) in the same period in 2014. The culprit was a $21.2 million (CHF20.5M) one-off loss attributed to covering negative balances following the January 15th Swiss franc Volatility.
Today we take a closer look at the broker’s Forex unit which contributed a large part to the firm’s realized losses. Since acquiring MIG Bank in September 2013, Swissquote’s forex business has become a greater part of the overall broker’s business, composing 36.1% of the firm’s revenues in H1 2015. In addition, with a strong end of the year, Swissquote was able to surpass $100 billion in monthly volumes during Q4 2014.
Accounts and clients assets
As seen in the chart above, Swissquote experienced a steep decline in client assets within its forex division. During the half year, client assets ended at CHF189.9 million versus CHF 241 million at the end of 2014. The 21% decline can be attributed in part to client losses suffered on January 15th. In addition any client accounts denominated in currencies other saw their value depreciate against the Swiss franc during the quarter. Overall, the decline in client assets was specific to Swissquote’s forex division.
With client assets falling to their lowest level since Swissquote’s acquisition of MIG Bank, number of accounts added grew by the highest amount in that same period. During H1 2015, 1,926 new accounts were added compared to less than 1000 during both H1 2014 and H2 2014.
Volumes and revenue capture
One the downside, trading volumes fell during H1 2015 compared to H2 2014. During the period, Swissquote averaged $81.7 billion in monthly volumes. The figure was well offer the $110 billion mark for Q4 2014, and the $96.1 billion monthly average for all of H2 2015.
On the bright side, according to Swissquote, revenue capture per million dollars traded (DPM) increased to $60.5. As seen in the chart above, DPM had been decreasing in the aftermath of Swissquote’s acquisition of MIG Bank. The decline isn’t surprising given the low revenue capture MIG Bank had experienced in 2012 and 2013, which ultimately led them to become a takeover candidate. Looking ahead, it will be interesting to see how much improvement in DPM Swissquote is able to achieve and whether it can climb back to the $70 to $100 level recorded prior to the acquisition of MIG Bank.
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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