OANDA, a provider of multi-asset trading services, has published its financial statements for its European operations – OANDA Europe Limited – for the financial year ending December 31, 2017. According to the report, the firm managed to achieve its main goal in 2017 – increasing its profitability.
In fact, during the 12 months ended December 31, 2017, OANDA’s European operations recorded a profit of £2.1 million ($2.7 million). This is an increase of around 40 percent from 2016, which had a profit of £1.3 million.
OANDA attributes this increase in profit to effective risk and expense management. During 2017 the firm also saw an increase of 21 percent in trading volume, which was driven by its high-value client base, which also played a key role in the uptick in profit.
In the report, the broker highlighted its key milestones for 2017. One of these milestones included being fully compliant with all MiFID II requirements, which came into effect in 2018. The firm notes that this was a sizeable task, but nonetheless, it was able to meet the deadline.
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The company also pinpoints its new customer acquisition and targeting model at being a key attribute to its success. This new model allows OANDA to target more high-value active clients, which resulted in the uptick in volume, which in turn boosted profits.
Taking a look at expenses, OANDA managed to reduce its expenses by 13 percent year-on-year from £15.2 million in 2016 down to £13.3 million in 2017. However, turnover for the company was actually less in 2017, coming in at £15.7 million. This is down 6 percent from 2016 which experienced a turnover of £16.6 million.
OANDA Outlines Its Business Objectives for 2018
Looking ahead, OANDA Europe Limited has outlined its key objectives for this year. The most important on that list is to increase profit while mitigating expenses and risk where possible.
The firm also aims to enhance its product offering, add new platform features, increase its active client base through Europe, Middle East and Africa (EMEA) region and improve the competitiveness of its pricing.
According to the report, OANDA aims to achieve this by improving its sales conversion process as well as focus on its customer service and retention programmes. However, the firm also notes that an ever-changing regulatory environment and low market volatility will be its two main obstacles in achieving its goals for 2018.