FxPro UK Turns Losses amid 48% Revenue Drop in 2021

Monday, 26/09/2022 | 07:51 GMT by Arnab Shome
  • The broker witnessed a significant trading volume drop in the year.
  • Several other UK brokers reported a similar trend in their financials.
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FxPro UK Limited, which is the FCA-regulated subsidiary of the Cyprus-based group, published its financials for the fiscal year 2021 ending on December 31. It reported a revenue of £900,365 for the period, which is down by 48 percent from more than £1.7 million generated in the previous fiscal.

With only £36,440 of other income, compared to the previous year’s £146,470, the total annual income of the broker came in at £936,805.

While the administrative expense has remained almost the same over the past two years, FxPro generated a pre-tax loss of £528,584 from its UK operations. The net comprehensive loss of the broker came to be £545,567.

On top of that, the broker's Companies House filing revealed that the notional volume traded in the last fiscal year dropped by 40 percent to $38 billion. The figure was at $64 billion in the prior year. This pushed the overall trading volume on the FCA-regulated platform to decrease by 48 percent.

Market Volatility Vanishes

“The decrease in volume of trading and as such in the revenue performance was mainly driven by a decrease in the number of clients as a result of Brexit and by the consequences of the Covid-19 outbreak, that caused abnormally significant market volatility and thus unprecedented trading revenue in 2020,” the filing added.

Indeed, the broker brought in a profit of £466,597 in fiscal 2020.

However, FxPro is not the only broker to report a slowdown in the UK business last year. GKFX, Capital Index and ThinkMarkets are only a few broker brands that reported a revenue dip in 2021 from their operations in the UK.

The latest balance sheet of FCA-regulated FxPro changed significantly due to the losses incurred in the year. Its total asset came down to £4.3 million compared to £6.26 million. Furthermore, the net asset decreased from £4.56 million to £4.02 million.

FxPro UK Limited, which is the FCA-regulated subsidiary of the Cyprus-based group, published its financials for the fiscal year 2021 ending on December 31. It reported a revenue of £900,365 for the period, which is down by 48 percent from more than £1.7 million generated in the previous fiscal.

With only £36,440 of other income, compared to the previous year’s £146,470, the total annual income of the broker came in at £936,805.

While the administrative expense has remained almost the same over the past two years, FxPro generated a pre-tax loss of £528,584 from its UK operations. The net comprehensive loss of the broker came to be £545,567.

On top of that, the broker's Companies House filing revealed that the notional volume traded in the last fiscal year dropped by 40 percent to $38 billion. The figure was at $64 billion in the prior year. This pushed the overall trading volume on the FCA-regulated platform to decrease by 48 percent.

Market Volatility Vanishes

“The decrease in volume of trading and as such in the revenue performance was mainly driven by a decrease in the number of clients as a result of Brexit and by the consequences of the Covid-19 outbreak, that caused abnormally significant market volatility and thus unprecedented trading revenue in 2020,” the filing added.

Indeed, the broker brought in a profit of £466,597 in fiscal 2020.

However, FxPro is not the only broker to report a slowdown in the UK business last year. GKFX, Capital Index and ThinkMarkets are only a few broker brands that reported a revenue dip in 2021 from their operations in the UK.

The latest balance sheet of FCA-regulated FxPro changed significantly due to the losses incurred in the year. Its total asset came down to £4.3 million compared to £6.26 million. Furthermore, the net asset decreased from £4.56 million to £4.02 million.

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.
  • 6420 Articles
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