FxPro UK Turns Losses amid 48% Revenue Drop in 2021

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 Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term and by the consequences of the Covid-19 outbreak, that caused abnormally significant market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.