Exinity UK, the British entity of retail FX and CFDs broker, ForexTime (FXTM), has published its annual financials for 2019, showing excellent growth in its revenue. The company even turned profits from the previous year’s heavy losses.
The latest Companies House filing showed that the revenue of the UK entity, formerly known as ForexTime UK Limited, for the year came in at £1.6 million, four times more than the previous year’s £402,748.
“Revenue is recognized by reference to the total volume of client trading activity and from service charged to ForexTime Limited,” the filing explained.
The broker detailed that its revenue comes from commissions “receivable from a related group entity.”
Finance Magnates reached out to FXTM to know the details behind this massive jump in revenue but did not receive anything as of press time.
Turning Profits in the Second Year
The astronomical rise in revenue helped the UK broker to turn profits of £18,099. In the previous year, it ran at a loss of £674,538.
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Though the number of new clients onboarded by Exinity UK in 2019 is not known, the entity opened 838 new accounts in 2018, out of which 521 accounts received deposits.
It is to be noted that FXTM’s British entity was formed in 2017, and it gained a license from the Financial Conduct Authority (FCA) in February 2018. Most of the broker’s European clients are onboarded under its Cyprus-regulated entity.
Moreover, FXTM has a third entity, Exinity Limited, registered and regulated in Mauritius to offer trading services to traders outside Europe.
The performance of forex brokers is accessed with the number of newly opened accounts, the volume traded and overall profitability.
“The company is within its first year of trading so as yet does not have any comparative figures to benchmark its performance against,” the filing noted.
Meanwhile, the European broker is constantly expanding its services and launched its European share of CFDs earlier this year, followed by the launch of commission-free stock trading services for traders outside Europe.