Online brokerage firm Capital Index released its financial reports for 2017 on Wednesday. The London-based company has seen a dramatic increase in its turnover and profits since the end of 2016.
Capital Index was founded in 2014 by FX veteran Rob Woolfe, the former head of FX at ETX Capital. The firm received regulatory approval from the Cyprus Securities and Exchange Commission in the same year and from the British Financial Conduct Authority in 2015. Beyond FX brokering, the firm also offers clients the opportunity to trade metals, bonds, and commodities.
Last year’s annual report saw the firm finishing 2016 with net assets of £626,962 ($852,937). The 2017 annual report saw the company almost doubling this figure as they ended the year with £1,025,297 ($1,394,844) of net assets.
Capital Index also saw a drastic increase in year-on-year turnover. The broker finished 2017 with a turnover of £4,091,901 ($5,566,335) compared with £2,864,478 ($3,896,635) in 2016 – a 42 percent increase year-on-year.
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This increase in turnover was supported by a reduction in operating costs. While Capital Index spent £1,853,489 on sales in 2016, last year saw the company reducing this figure to £1,597,283.
This reduction in sales costs meant the company was able to more than double their year on year gross profit in 2017 to £2,494,618. Shrinking sales costs, however, were compounded by an increase of over $1,000,000 in administrative costs.
As a result, the brokerage firm saw pre-tax profits of £496,093 in 2017 – still a huge increase on 2016 where the company ended the year with pre-tax profits of £198,613. Taxes on 2017’s earnings meant the company started 2018 with £398,335 of profit. This was more than double 2016’s profit of £156,972.