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.
