CFDs Broker Fortrade Increased 2023 Profits Despite 39% Revenue Drop

Thursday, 14/11/2024 | 10:58 GMT by Arnab Shome
  • The broker generated £19.7 million in revenue in 2023, down from £32.3 million in 2022.
  • Its net profit rose by 27.4 per cent to £1.05 million.
London's skyline; Source: Wikimedia Commons
London's skyline; Source: Wikimedia Commons

London-headquartered Fortrade, a contracts for differences (CFDs) broker, ended 2023 with a turnover of £19.7 million and a net profit of £1.05 million, according to the latest Companies House filing. While turnover declined by 39 per cent, the company increased its profits by 27.4 per cent year-over-year.

Another Profitable Year for Fortrade

Notably, Fortrade witnessed a revenue decline for the first time in three years. Its revenue peaked in 2022, reaching £32.3 million. The latest drop in revenue is also the second time the broker has faced a challenge in its growth trajectory—the only other time its revenue declined was in 2019, when it generated £15.5 million compared to the previous year’s £17.7 million.

Despite the revenue decline, the group managed to reduce its administrative costs from £4.4 million to £3.5 million. It also benefited from £80,156 in interest income. Additionally, it received a tax credit last year, with pre-tax profits at £1 million compared to £857,103 in the previous year.

Income statement of Fortrade Limited & Subsidiary
Income statement of Fortrade Limited & Subsidiary

Opportunities in Core Markets

“The Group continued to look for opportunities overseas although the directors expect that the Group’s future profitability will be primarily from its existing core markets,” the filing stated.

Further, the company also managed to strengthen its balance sheet, increasing its net assets to £12.5 million from £7.5 million.

Established in 2013, Fortrade offers CFD trading services with forex, stocks, indices, commodities, and US treasuries. It targets both retail and institutional clients. Although headquartered in London, it operates globally with licences from regulators in countries including Canada, Australia, Cyprus, and Mauritius.

However, earlier this year, its subsidiary in Belarus lost its authorisation in the country about five and a half years after receiving the licence. Apart from its trading operations, it also operates a back office in Israel.

London-headquartered Fortrade, a contracts for differences (CFDs) broker, ended 2023 with a turnover of £19.7 million and a net profit of £1.05 million, according to the latest Companies House filing. While turnover declined by 39 per cent, the company increased its profits by 27.4 per cent year-over-year.

Another Profitable Year for Fortrade

Notably, Fortrade witnessed a revenue decline for the first time in three years. Its revenue peaked in 2022, reaching £32.3 million. The latest drop in revenue is also the second time the broker has faced a challenge in its growth trajectory—the only other time its revenue declined was in 2019, when it generated £15.5 million compared to the previous year’s £17.7 million.

Despite the revenue decline, the group managed to reduce its administrative costs from £4.4 million to £3.5 million. It also benefited from £80,156 in interest income. Additionally, it received a tax credit last year, with pre-tax profits at £1 million compared to £857,103 in the previous year.

Income statement of Fortrade Limited & Subsidiary
Income statement of Fortrade Limited & Subsidiary

Opportunities in Core Markets

“The Group continued to look for opportunities overseas although the directors expect that the Group’s future profitability will be primarily from its existing core markets,” the filing stated.

Further, the company also managed to strengthen its balance sheet, increasing its net assets to £12.5 million from £7.5 million.

Established in 2013, Fortrade offers CFD trading services with forex, stocks, indices, commodities, and US treasuries. It targets both retail and institutional clients. Although headquartered in London, it operates globally with licences from regulators in countries including Canada, Australia, Cyprus, and Mauritius.

However, earlier this year, its subsidiary in Belarus lost its authorisation in the country about five and a half years after receiving the licence. Apart from its trading operations, it also operates a back office in Israel.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6644 Articles
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