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 , 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:
- Blackwell Global UK Posts £17K Loss, Exits Retail Market after "Challenging Year for Trading"
- Capital.com UK’s 2024 Profit Jumps 215% Despite Higher Expenses
- Trading212 Cyprus Doubles Its 2024 Revenue to £42 Million
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 , 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.
