Gain Capital UK Reported £11.36 Million Loss in 2019

Similar to its parent company, the FCA-regulated entity struggled with low volatility.

Gain Capital UK Limited, has recently released its financial results for 2019, revealing that the UK operations of GAIN Capital reported a loss for the 12 month period, which was plagued with low levels of volatility.

In the United Kingdom, Gain Capital is authorised and regulated by the Financial Conduct Authority (FCA). The company’s principal activity is the provision of market-making and spread-trading on equities, equity indices, commodities, exchange rates, interest rates and other financial instruments.

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In particular, Gain Capital UK reported a loss of £11.36 million for the year ended on 31st December 2019, a report filed through UK’s Companies House shows. This is less than the £19.81 million profit the online trading provider recorded in the previous financial year.

Turnover for the 12-month period also dropped notably in 2019, falling from £83.35 million in 2018 by 80.3 per cent to reach £16.43 million in 2019. Gross profit also dropped by 86.9 per cent year on year.

Gain Capital Holdings Sees $60.8m Net Loss in 2019

The results from Gain Capital UK in 2019 reflect those achieved by its parent company at the time, Gain Capital Holdings Ltd., which posted a net loss of $60.8 million for the year, and a 35 per cent annual decline in revenues.

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According to the trading provider’s report, its UK operations were weighed down by prolonged muted volatility across both currency and equity markets in 2019. This adversely impacted volumes and, therefore, trading revenues.

In 2019, the trading firm prioritised the acquisition and retention of clients, as well as ensuring it had suitable products and services for professional and high-value clients. 

A spokesperson from Gain Capital UK confirmed to Finance Magnates that in 2019, the company saw multi-year lows, particularly in foreign exchange (forex), which contributes a large percentage of the volume traded by its customers.

Despite this, the spokesperson highlights that the firm continued to develop its product offering during the year, which including the launch of DMA FX in the United Kingdom and thematic indices – a Biden Index and a Trump Index – which contain a basket of equities that are most likely to be impacted should one of them win the election.

Looking to the future, Gain Capital UK outlined that its business strategy for 2020 and beyond continues to be focused upon driving organic growth, creating greater operational efficiencies and focus on revenue optimisation.

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