Capital.com's UK branch has published its financial results for 2023, reporting a significant decrease in net profit compared to the previous year. Although revenue saw a modest increase, income shrank by over 60% to $1.5 million.

Capital.com UK Reports Substantial Profit Decline in 2023

Capital Com (UK) Limited is responsible for Capital.com's brokerage operations in the UK. The company's net trading profit reached $29.7 million, compared to $29.1 million reported in 2022. Thanks to much lower direct expenses, gross profit stood at $26.9 million, up from $22.8 million the previous year.

However, Capital.com UK experienced a significant increase in administrative costs, which amounted to $23 million, up $7 million from $17 million in the previous period. As a result, net profit fell to $1.5 million, compared to $4.1 million in 2022, shrinking by over 60%.

It's worth noting that the company paid a dividend of $5 million last year, whereas it did not share profits with shareholders in the previous year. The report also indicates that the company “invested in IT and second-line infrastructure employees to support” its ability to meet regulatory requirements. Consequently, staff costs rose from just under $11 million to over $16.5 million.

“We increased our headcount by 27%, bringing in additional expertise to provide even greater levels of service and support,” the company commented in an emailed statement. “These substantial investments, while essential for our long-term success, have resulted in a decline in reported profits for the year.”

“Despite these planned expenditures, Capital.com UK remains in a strong financial position with £9.2 million in cash and cash equivalents, and £7.4 million in capital. In 2023, overall income increased to £29.7 million while client funds grew to £20.5 million from the previous year.”

The company's total assets remained virtually unchanged at just over $30 million, similar to 2022.

In March, Finance Magnates reported that the UK arm of Capital.com suspended new account creations in the country. According to an emailed statement, the move was made to ensure the company will “continue to deliver an uncompromised level of service to existing clients in the UK.”

When visiting the Capital.com website in the UK and attempting to open an account, users are greeted with a message stating that the company has “made the decision to pause onboarding new clients in the UK for now.”

How Does Capital.com Perform Overall

It's important to remember that the results reported by Capital Com (UK) Limited represent only a fraction of Capital.com's entire operation. The broker's main headquarters is in Cyprus, under the CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term's regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, and it also operates several other entities worldwide.

Recently, the company reported its global trading volumes, which exceeded $1.2 trillion in 2023. The group's latest results cover the first half of 2024, during which revenue hit “triple-digit millions.”

From January to June, revenue jumped by 35%, and the total number of registered accounts increased by 63%. Trading volume reached $725 billion.

“These results underscore our strategic investments in talent, IT, and second-line systems, which are driving our global growth,” said Ariel Segev, Group Chief Financial Officer at Capital.com.

Meanwhile, the firm also appointed Jessica Bliesner as the new Group Chief Operating Officer. She has already assumed the role and is based in the broker's London offices.

A month ago, Capital.com started a new initiative with the crowdsourced security platform Integrity, offering its clients a bug bounty program. Thanks to this move, the broker wants to commit more to the safeguarding of user data and the integrity of its platform.