Exclusive: Valutrades Limited Posts 42% YoY Uptick in 2019 Revenues

Valutrades Limited has revealed its 2019 financial results exclusively to Finance Magnates, showcasing a strong performance during the 12 month period for the retail and institutional foreign exchange (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) and contracts for difference (CFD) broker.

In 2019, Valutrades reported a strong performance, with revenue increasing by 42 per cent year-on-year to reach £3.29 million. In addition, the UK-based broker also saw an increase in gross profits of 59 per cent, hitting £2.40 million. Net profits were finalised with a loss of £90,867 compared to a loss of £511,982 for 2018.

As Finance Magnates previously reported, Valutrades loss in 2018 was due to the fact that it saw a steep rise in its sales costs and administrative expenses which were actually from one-off costs related to regulatory changes.

Although still reporting an overall net loss for the year, Valutrades results are largely positive, as many brokers globally were still struggling to recover from the 2018 ESMA leverage changes for retail clients last year.

Furthermore, at the end of 2019, the FCA-regulated broker raised an additional £1,559,925 of capital. According to the statement seen exclusively by Finance Magnates, this will be used primarily to robustly manage risks and further invest in the next generation of technologies.

Commenting on the results, Valutrades CEO Graeme Watkins said: "I am extremely proud of a great team effort for 2019, in spite of the tightening prevalent regulatory environment combined with stagnant market volatility.

“Valutrades stuck to the plan of continuing to invest in the core offering of providing clients with a low cost, transparent platform coupled with superior customer support. Additionally we now have the framework to better support our institutional offering in terms of prime broker and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provision.

“This investment has gone arm in arm with the fact that we have seen a very loyal client base to the brokerage throughout 2019 and we look forward to further servicing traders going forward."

Valutrades starts 2020 on solid footing

The coronavirus pandemic, which has largely been beneficial for brokers, has provided a boost to the FX broker, with the first quarter of 2020 being a record period by many metrics, the company said.

"Our long term investment in building out a highly efficient team with an expanded product offering has witnessed a strong start out of the blocks in 2020. That which was particularly impressive was our ability to continue to price all markets, in spite of extreme volatility, including a 100% uptime in products such as Gold and Oil that saw significant service and pricing disruptions at other brokerages,” Watkins continued.

“Furthermore, the work that we have put in on our systems and technology meant that the transition to a working from home schedule was completely seamless and offered absolutely no disruption to clients. Indeed, we had made the decision to switch to the current model well before the UK Government began to enforce it."

It is worth pointing out that the results mentioned above do not include Valutrades Seychelles Limited, whose launch Finance Magnates exclusively covered earlier this year, which has also reported a very strong start to business this year, the company said.