55% Online Trading Growth Boosts ETX Capital Revenues and Profits in 2014

Filing their 2014 Annual Report with the UK Companies House, figures from ETX Capital revealed that revenues increased 38% to £34.7 million compared to £25.2 million in 2013. During the year, bottom line profits were reported at £2.487 million, well ahead of the £783,080 figure for 2013.

The broker also ended the year with £53.67 million in net funds, compared to £43.19 million in 2013. Also, net client obligations were reported at over £104 million, reflecting a near 50% increase in customer net asset value levels.

Strong Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term

According to ETX Capital, 2014’s growth was directly attributed to its online retail trading business which saw revenues increase 55%. This compared with its high net worth (HNW) brokering business, of which revenues were flat at £8.11 million. Overall, online trading revenues were reported at £26.55 million, compared to £17.03 million in 2013.

Despite record low volatility in currencies in the first half of the year, ETX Capital stated that average trades per client grew 17% to 1026 during the year. More impressively, the firm was able to achieve strong growth in its customer onboarding, with active monthly traders growing to around 7,500 customers in Q4, compared to about 5,000 for much of 2013.

According to ETX Capital, the customer growth is being achieved through its international expansion out of the UK, which began five years ago. As such, non-UK accounts accounted for 55% of new customers in 2014 compared to 40% in 2014. The firm added that in December of 2014, the ratio of non-UK accounts reached 68% of new customers. As a result, although UK customers composed of 55% of online trading revenues for 2014, that figure dropped to 50% in Q4.

Among non-UK areas of growth, ETX Capital reported that Northern Europe, which is composed of mainly Germany, France and Scandinavia, reported 123% of retail growth in 2014. The region was the first to be targeted outside of the UK five years ago and has become one of its largest revenue drivers.

Ariel Communications Purchase

Among other areas of its operation, ETX Capital acquired Ariel Communications during 2014. The firms had a previous connection, with Ariel having developed ETX’s multi-asset Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. As a result of the acquisition, ETX Capital expects the deal to decrease its technology expenses related to operating its platform, relating to savings of £600,000 on a yearly basis.