Swissquote Posts Record Revenues and Profits in 2018

Swiss bank and brokerage company Swissquote has achieved a new milestone in its corporate history. Last year marks a new record for the company both in terms of revenues and profits.

Swissquote not only delivered on its guidance issued in the first half of 2018 but exceeded it when it comes to the bottom line.

While we are yet to see the details from the company, which will be posted in early March, the Swiss brokerage posted its top and bottom line figures for the second half of last year.

Total earnings in 2018 increased by 15 percent year-on-year to CHF 214 million ($220 million). Pre-tax profits for the same period rose by 16 percent on a yearly basis, coming in at CHF 53.5 million ($55 million).

The results are not including any figures from Internaxx, which Swissquote acquired last year. The deal is still subject to regulatory approval by the end of Q1 2019.

High Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and Insulation from ESMA

The strong performance of Swissquote in 2018 should be attributed to two main factors. First and foremost, a massive increase in volatility across financial markets drove rising trading activity.

Global stock markets tanked last year, leaving investors with few options to hedge their losses. Commodities declined sharply led by oil, while lackluster bond markets performance didn't help risk-parity strategies.

Another major factor helping Swissquote's bottom line was its insulation from the impact from the new ESMA regulations. The company's Swiss banking license permits it to provide higher Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term when compared to EU-based peers.

Clients across the EU have been looking for ways to continue trading with high leverage. The position of Swissquote, Dukascopy, and IG and Saxo Bank's local offices in Switzerland have granted the firms a regulatory advantage when compared to its peers.

Further uncertainty down the line and what seems to be the peak in US interest rates are positives for market volatility. The present market conditions are warranting further solid results for the Swiss broking company.