OANDA
Europe Limited, the UK subsidiary of the global OANDA brokerage
group, reported a profit of £1.07 million for 2024, marking an
eightfold increase over the prior year despite lower market
volatility throughout the period.
OANDA UK Posts Profit Jump
on Client Growth
The
FCA-regulated broker generated total revenue of £18.5 million
during the year ended December 31, 2024, up 13% from £16.3 million
in 2023. Pre-tax profit climbed to £1.51 million from just £227,336
the previous year, according to the company's annual report filed with
Companies House.
"Despite
lower market volatility in 2024, the Company achieved better financial
performance than 2023 due to improvements in client acquisition and
retention," the directors stated in the strategic report.
The
results came during a year when market turbulence generally declined compared
to 2023, typically a headwind for retail trading volumes. Instead,
OANDA Europe pointed to improvements in bringing new clients onto its
platform and keeping existing ones active as the main drivers behind
the stronger numbers.
The
company operates primarily through OANDA's proprietary
FxTrade platform and MetaTrader 4 and 5, offering leveraged trading
on contracts for difference and spread bets covering foreign currencies,
equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term, bonds, commodities, metals and indices. All client positions are
immediately hedged with related OANDA entities to eliminate market
risk exposure.
Check
also other UK-based, FCA-regulated companies related to CFDs that published
2024 results this week:
Revenue Sources Shift
Trading revenue
allocation from OANDA Australia totaled £10.1 million in 2024, up
from £9.3 million a year earlier. The company also earned £8.3 million
from business consulting services provided to other OANDA
entities, calculated on a cost-plus basis, compared to £6.8 million
in 2023.
OANDA
Europe terminated its Residual Profit Split Method agreement during
the year, which had previously contributed to revenue. A shift in transfer
pricing methodology across the OANDA group from the residual profit
split model to a royalty and services structure took effect in April
2024.
Administrative expenses
reached £17.5 million, down slightly from £16.6 million in 2023, even
as the company continued investing in marketing
Marketing
Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t
Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t
Read this Term, customer service and
relationship management. Staff costs jumped 19% to £9.3 million, driven primarily
by higher bonus payouts. The average headcount during the year was 54
employees, down from 57 in 2023.
Marketing expenses
declined to £2.5 million from £2.7 million, while business consulting fees
paid to other OANDA entities dropped to £3 million from £3.5 million.
Key Financial Metrics
Metric | 2024 | 2023 | Change |
Total Revenue | £18,474,182 | £16,328,050 | +13.1% |
Profit Before Tax | £1,507,287 | £227,336 | +563.0% |
Net Profit | £1,072,499 | £127,831 | +738.9% |
Administrative Expenses | £17,486,403 | £16,585,444 | +5.4% |
Capital Requirements
Tighten
OANDA
Europe maintained a regulatory capital surplus of £4 million at
year-end, down from £5.2 million in 2023. The company has operated
under the FCA's Investment Firm Prudential Regime since January 2022,
which imposed more stringent capital calculations and liquidity
monitoring requirements compared to previous rules.
The
broker's balance sheet showed total assets of £15.8 million at
December 31, 2024, up from £13.5 million a year earlier.
Cash holdings rose to £8 million from just under £6 million. The
company also maintained a £5 million unsecured loan to parent OANDA Global
Corporation, extended in December 2024 at a 5.13% annual interest rate.
Client money
held in segregated accounts under FCA rules totaled £25.8 million at
year-end, down from £29.4 million in 2023. These funds are kept
separate from the company's own assets and reconciled daily
in compliance with the regulator's client asset requirements.
Acquisition Pending
On
January 30, 2025, Czech proprietary
trading firm FTMO Group signed an agreement to acquire the
entire OANDA group from CVC Capital Partners, subject to
regulatory approvals including from the FCA. Upon completion, Plutus
Investment Holdings, OANDA Europe's ultimate parent company, will
become a wholly owned FTMO subsidiary.
Related
stories: FTMO
Announces Over $450 Million Paid Out as Prop Trading Firm Turns 10
The
company noted it was still assessing
the impact of the pending acquisition and made no adjustments to
the 2024 financial statements related to the transaction. CVC
acquired OANDA in
2018 at a reported valuation of $175 million.
OANDA
Europe outlined several risk factors in its strategic report, including
potential losses from professional clients not covered by
negative balance protection, ongoing geopolitical conflicts in Ukraine and
the Middle East, and new US trade tariffs that have sparked increased
market volatility in early 2025.
The broker
said heightened trading activity from tariff-induced market swings could
boost financial results in upcoming periods, though it cautioned
about risks associated with volatile conditions. The company also
stated it found no material climate-related impacts on its business
model or operations.
OANDA
Europe Limited, the UK subsidiary of the global OANDA brokerage
group, reported a profit of £1.07 million for 2024, marking an
eightfold increase over the prior year despite lower market
volatility throughout the period.
OANDA UK Posts Profit Jump
on Client Growth
The
FCA-regulated broker generated total revenue of £18.5 million
during the year ended December 31, 2024, up 13% from £16.3 million
in 2023. Pre-tax profit climbed to £1.51 million from just £227,336
the previous year, according to the company's annual report filed with
Companies House.
"Despite
lower market volatility in 2024, the Company achieved better financial
performance than 2023 due to improvements in client acquisition and
retention," the directors stated in the strategic report.
The
results came during a year when market turbulence generally declined compared
to 2023, typically a headwind for retail trading volumes. Instead,
OANDA Europe pointed to improvements in bringing new clients onto its
platform and keeping existing ones active as the main drivers behind
the stronger numbers.
The
company operates primarily through OANDA's proprietary
FxTrade platform and MetaTrader 4 and 5, offering leveraged trading
on contracts for difference and spread bets covering foreign currencies,
equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term, bonds, commodities, metals and indices. All client positions are
immediately hedged with related OANDA entities to eliminate market
risk exposure.
Check
also other UK-based, FCA-regulated companies related to CFDs that published
2024 results this week:
Revenue Sources Shift
Trading revenue
allocation from OANDA Australia totaled £10.1 million in 2024, up
from £9.3 million a year earlier. The company also earned £8.3 million
from business consulting services provided to other OANDA
entities, calculated on a cost-plus basis, compared to £6.8 million
in 2023.
OANDA
Europe terminated its Residual Profit Split Method agreement during
the year, which had previously contributed to revenue. A shift in transfer
pricing methodology across the OANDA group from the residual profit
split model to a royalty and services structure took effect in April
2024.
Administrative expenses
reached £17.5 million, down slightly from £16.6 million in 2023, even
as the company continued investing in marketing
Marketing
Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t
Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t
Read this Term, customer service and
relationship management. Staff costs jumped 19% to £9.3 million, driven primarily
by higher bonus payouts. The average headcount during the year was 54
employees, down from 57 in 2023.
Marketing expenses
declined to £2.5 million from £2.7 million, while business consulting fees
paid to other OANDA entities dropped to £3 million from £3.5 million.
Key Financial Metrics
Metric | 2024 | 2023 | Change |
Total Revenue | £18,474,182 | £16,328,050 | +13.1% |
Profit Before Tax | £1,507,287 | £227,336 | +563.0% |
Net Profit | £1,072,499 | £127,831 | +738.9% |
Administrative Expenses | £17,486,403 | £16,585,444 | +5.4% |
Capital Requirements
Tighten
OANDA
Europe maintained a regulatory capital surplus of £4 million at
year-end, down from £5.2 million in 2023. The company has operated
under the FCA's Investment Firm Prudential Regime since January 2022,
which imposed more stringent capital calculations and liquidity
monitoring requirements compared to previous rules.
The
broker's balance sheet showed total assets of £15.8 million at
December 31, 2024, up from £13.5 million a year earlier.
Cash holdings rose to £8 million from just under £6 million. The
company also maintained a £5 million unsecured loan to parent OANDA Global
Corporation, extended in December 2024 at a 5.13% annual interest rate.
Client money
held in segregated accounts under FCA rules totaled £25.8 million at
year-end, down from £29.4 million in 2023. These funds are kept
separate from the company's own assets and reconciled daily
in compliance with the regulator's client asset requirements.
Acquisition Pending
On
January 30, 2025, Czech proprietary
trading firm FTMO Group signed an agreement to acquire the
entire OANDA group from CVC Capital Partners, subject to
regulatory approvals including from the FCA. Upon completion, Plutus
Investment Holdings, OANDA Europe's ultimate parent company, will
become a wholly owned FTMO subsidiary.
Related
stories: FTMO
Announces Over $450 Million Paid Out as Prop Trading Firm Turns 10
The
company noted it was still assessing
the impact of the pending acquisition and made no adjustments to
the 2024 financial statements related to the transaction. CVC
acquired OANDA in
2018 at a reported valuation of $175 million.
OANDA
Europe outlined several risk factors in its strategic report, including
potential losses from professional clients not covered by
negative balance protection, ongoing geopolitical conflicts in Ukraine and
the Middle East, and new US trade tariffs that have sparked increased
market volatility in early 2025.
The broker
said heightened trading activity from tariff-induced market swings could
boost financial results in upcoming periods, though it cautioned
about risks associated with volatile conditions. The company also
stated it found no material climate-related impacts on its business
model or operations.
