Online forex broker FxPro UK has reported its annual numbers for 2019, showing a 59 percent decline in its revenue, along with a net loss of £221,724 (around $273,312).
Till December 31, 2019, the brokerage recorded £1.54 million ($1.90 million) in total annual revenue, compared to £3.76 million ($4.64 million) the previous year – a year-on-year decline of almost 59 percent. The company was also profitable a year before with a net profit of £1.24 million ($1.53 million).
The sluggish figures followed the declining notional volume traded on the platform that reached $55 billion in 2019, almost one-third of the reported $142 billion in the previous year.
The attack of the European regulator on brokers
The FxPro UK subsidiary highlighted that the decrease in the volume of trading and the resulting poor revenue is due to the measures imposed by the European Securities Market Authority (ESMA), which include the restrictions on marketing and the distribution of CFDs to retail investors.
The impressive 2018 numbers of the broker were also hit by the week market conditions.
$100,000 Battle: PrimeXBT Debuts New Contests ModuleGo to article >>
Due to the loss incurred in the year, the company’s net asset also £4.1 million ($5.05 million) while the figures for the previous year stood at £4.32 million ($5.33 million) – the company still has a total asset of £5.1 million ($6.29 million).
The cash and cash equivalencies of the company also decreased to £3.69 million ($4.55 million) last year – this was at £4.6 million ($5.67 million) in 2018.
The online brokerage also highlighted that its total expanse also reduced 23 percent primarily due to the decrease in staff costs and commissions to introducing brokers.
The disappointing figures from the company came after posting record figures for the previous couple of years.
Despite the worse-than-expected figures for 2019, the COVID-19 induced volatility of Q1 saw many brokers experience post record numbers. With Q1 2020 results yet to be published by FXPro UK, we should expect an uptick in performance.
Earlier this year, the UK regulator warned the traders against a similarly named clone of FxPro.