ActivTrades Sees Spike in Yearly Profit Margins, FX Turnover in 2015

Higher FX volatility helped significantly boost ActivTrades' profit margins in 2015.

ActivTrades Plc, a UK-based broker providing foreign exchange (FX), contracts for difference (CFDs), and spread betting, has reported its full year financials for 2015, which showed a healthy uptick in profitability, according to a filing with the UK Companies House.

The latest company report casts light on ActivTrades’ overall metrics and volumes, both of which appeared to have been helped by higher market volatility in the FX market. As such, ActivTrades disclosed a 2015 FX turnover figure of $45.3 million (£31.4 million), up 26.5% YoY from $35.8 million (£24.8 million) in the year prior.

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This growth was tempered by an additional rise in administrative expenses at the broker, which in 2015 climbed to $23.7 million (£16.4 million), vs. just $22.5 million (£15.6 million) one year earlier. A large component of this increase in expenses was pegged to ActivTrades’ rising workforce in 2015, including marketing costs, IT, and investments.

Broker Reaches Profitability in 2015

ActivTrades also reached profitability in 2015, after reporting a figure of $13.9 million (£9.6 million) after tax, up from just $6.6 million (£4.6 million in the year prior). Another boost for the broker was captured across its increase in trading accounts – during 2015, ActivTrades identified over 66,000 new clients, including 9,039 new accounts for the year, up 88.0% YoY from 2014.

The broker also witnessed a net increase in deposits in 2015, having swelled to $49.1 million (£34.0 million) during the year, up a full 50.0% YoY. Finally, the manifest showed ActivTrades having net assets in excess of $41.4 million (£28.7 million) in 2015, climbing 31.1% YoY from $31.6 million (£21.9 million).

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