Gildencrest Capital Limited, a London-based financial brokerage firm formerly known as TeraFX, experienced a 75% drop in foreign exchange (Forex) trading volume during 2024, according to the company's recently published annual financial statements.

London Broker Reports 75% Drop in Forex Volume, Equity Trading Up 4%

The firm's FX business volume fell to £8.7 billion last year, generating just £231,000 in income related to CFD trading services, as the company deliberately shifted its focus toward equity trading and institutional clients.

Equity trading has emerged as the company's primary revenue source, now accounting for approximately 90% of Gildencrest's total income. The firm reported £2.05 million in equity trading services revenue. Although it represents only a 4% increase, the company still considers it a good result in light of the challenging market conditions in 2024.

"In 2024 the Company continued its shift of focus from Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Business to focus more of its efforts on other Capital market instruments such as equities, to broaden its product offering and brokerage activities," the company stated in its strategic report.

Total revenue for the year decreased to £3.65 million from £7.55 million in 2023, while profit after taxation fell significantly to £20,458 compared to £809,912 in the previous year.

Operating for years as TeraFX, the broker decided to rebrand as Gildencrest Capital at the beginning of last year. The name change was intended to reflect that the company offers not only currency trading but also a broader range of financial services.

Gildencrest Capital Limited - Key Financial Metrics (2023-2024)

Dubai and Latvia to Help Grow CFD Business

The strategic pivot comes amid tightening regulatory constraints on retail forex and CFD trading. Gildencrest reported it has been deliberately reducing its concentration on retail clients affected by European Securities and Markets Authority (ESMA) intervention measures and permanent Financial Conduct Authority (FCA) restrictions on leveraged products.

"There is a continued emphasis on developing relations with more experienced professional traders and corporate clients, and to trading in equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term," the company noted.

The firm is pursuing geographic expansion to support future growth in the CFD sector, continuing operations through its Dubai branch and pursuing a license application in Latvia, which it hopes will enable it to offer products in European markets by mid-2025.

Looking ahead, Gildencrest expressed caution about general business conditions in early 2025, citing "global risk aversion, and political tensions and economic uncertainty created by Trump Tariffs, which are likely to remain as headwinds."

The company's financial position remains stable with regulatory capital resources of £3.1 million at the end of 2024, well above its minimum capital requirements.

Gildencrest Capital Limited is a non-advisory matched principal broker authorized and regulated by the UK's Financial Conduct Authority, offering brokerage services in OTC leveraged derivatives and capital market securities.