Armada Markets Reports Record Trading Volume of $20.5 Billion in September
The broker additionally claims that during 2014 it has continued to grow rapidly in terms of client numbers, average monthly
Estonia-based broker, Armada Markets, announced today financial results for the first half of the year, reportedly showing the company has continued to grow in all financial metrics it tracks. Despite the record low volatility during the first 6 months of 2014, Armada Markets reported a solid net profit of €0.87 million for the H1 2014 period. This follows a reported net profit of €1.37 million for the fiscal year 2013.
Following the recent pick up of volatility in FX, the broker also reported today a record monthly trading volume for September of $20.5 billion, which is a growth of almost 100% YoY compared to September, 2013. The company also says it expects to reach a monthly trading volume of $25-$35 billion within the next 6-9 months. Armada Markets says the financial figures are audited but its volume growth claims are a bit more than you expect and is not independently verified as far as the information that was given today.
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Armada Markets additionally claims that during 2014 the company has continued to grow rapidly in terms of the client numbers, average monthly trading volumes and active markets in which it participates, but did not provide any figures. This announcement follows the recent first-ever net loss of rival Estonian broker, Admiral Markets Group, but the firm tries to shift the focus from its home market by saying the majority of Armada Markets’ revenues are derived from the Asia-Pacific region.
Ingmar Mattus, CEO of Armada Markets said: “I am delighted to see such a consistent growth for Armada Markets in all of the key metrics and was especially glad that our profitability wasn’t affected by the less volatile markets during H1 of 2014. I believe that at times of lower volatility the execution quality and low trading costs become absolutely critical for all traders and we were able to prove our case for so many new clients during H1 of 2014.”
Illimar Mattus, CFO of Armada Markets, commented at the announcement: “We started Armada Markets in 2011 with a mission to provide the best possible trading conditions. This approach has proven to be successful as illustrated by our financial results and the fact that around 60-70% of our new clients find us through word of mouth. In 2014 we have seen not only more clients and higher trading volumes, but we have also added 9 new client-oriented professionals to our global staff of 32 people. We will be hiring an additional 10-15 people over the next 6 months to service our clients and to introduce 2 new subsidiaries.”
Very low profits for such volume, they must have had significant losses on their B book.
I remain sceptical about these figures until they are independently audited. If stated volumes are genuine, then they are a very unprofitable company – relative to equity/volume – and must have some big overheads. Looks like a rushed PR release on back of Admiral’s recent news. Very transparent ploy.
Armada commenced a mass b-booking initiative in Q1 2014. Their margins (per million) are reflective of the choppy markets reflected in q1/q2 of 2014. Furthermore, there is absolutely no way they are transacting 1BB/day, especially given their recent legal issues with peripheral markets in eastern europe.
Check their marketing bill. I guess its pretty high…
This firm still smells funny. I wouldn’t want to be a client there. Basically clients are unsecured creditors to an estonian LLC, offering services to retail clients through out the EU without regulation (and as such without legal foundation). Albeit babbling since ages on how they are just about to get a real EU license. And the the owners have a history of regulatory problems. I doubt this will end well.
Armada Markets is a public limited company in Estonia and their audited 2013 annual report is available for anyone who has 2.5 EUR to spend. The figures in the audited report correspond to the ones they said in the press release. Regarding the 2014 figures then I think September was actually a good month for all of the larger FX brokers who have a decent amount of clients. I’m not sure how to take it but they are also hiring new people, currently 3 in Estonia – http://www.cv.ee/job-ads/q-armada%20markets
Kevin, didn’t you get the memo that we should all write negative comments about Armada?
I’m surprised Armada has grown so fast. My current broker Saxo Bank was started in 1997 and in 2013 their net profit was $30 million. And here is a broker that started in 2011 and in 2013 their net profit was $1.75 million. Based on the Armada’s press release I assume that H1 was also good so they might turn in $3 million of net profit this year, which is like 10% of Saxo who is a real whale in FX industry. On their website Armada has: “Armada Markets submitted on 12.03.2014 a complete application for a European Union MiFID… Read more »
There is no such thing as a “European Union MiFID licence”…..Their compliance should amend this statement.
fiver: but it has a nice ring to it, and as a marketing measure it doesnt need to have a foundation in reality. Also, what makes you think they actually have a compliacne dept. Its not like they need one as a unregulated firm.