Swissquote Ltd, the UK arm of Swiss financial services group Swissquote, reported a deeper loss in 2024 as the online broker continues to grapple with Brexit-related restrictions that have limited its ability to attract new customers.
Swissquote's UK Unit Reports Wider Loss as Brexit Impact Persists
The London-based CFD company posted a loss of £1.16 million for the year ended December 31, more than tripling from a £354,000 loss in 2023. The widening deficit came as trading volumes dropped 53% compared to the previous year, while net turnover fell 48% to almost £419,000.
The company's struggles reflect the ongoing impact of Britain's departure from the European Union, which stripped UK-based financial firms of their ability to passport services across the bloc.
"As a consequence of Brexit, passporting rights were lost and this change in the British regulatory and legal framework had a significant impact on new customers onboarding, which translated in limited client growth and lower trading volumes," Swissquote said in its annual report.
Administrative expenses rose 18% to £1.94 million, partly due to £215,890 in employee share and option awards that weren't recognized in the prior year. The company employed nine people at year-end, down from 11 in 2023.
Despite the challenging environment, the firm maintained £6.09 million in cash and cash equivalents, though this was down from £7.03 million a year earlier. Client money held in segregated accounts totaled £5.89 million, compared to £7.49 million in 2023.
Swissquote Ltd (UK Subsidiary) Key Metrics
Metric | 2024 | 2023 | % Change |
Net Turnover | £418,567 | £810,210 | -48.3% |
Administrative Expenses | £1,943,759 | £1,641,994 | +18.4% |
Loss Before Tax | -£1,155,796 | -£354,108 | +226.4% |
Total Assets | £6,471,063 | £7,556,525 | -14.4% |
Related: Swiss Regulator Pressures Swissquote Over Rising Cybercrime Risks: Report
Strategic Pivot Toward New Products
Swissquote Ltd has been working on expanding its product offering to diversify revenue streams and strengthen its position in the UK market. The company said it has "concluded the assessment of additional products designed for the UK market and expects to diversify its revenue streams and strengthen its UK presence."
The firm continues to provide support for Swissquote Capital Markets Limited, the group's Cyprus entity, as part of efforts to maintain a European Union presence following Brexit. This supporting role leverages the UK unit's existing knowledge while covering functions necessary to affirm the brand's presence in the EU.
Swissquote Ltd operates as a matched principal broker, meaning it takes no market trading risk by offsetting all client trades with its Swiss parent company. The firm's revenue comes primarily from commissions charged to clients and overnight funding charges on open CFD positions.
If the case of the entire Group, Swissquote's financial condition looks decidedly better. The company generated $444.2 million in revenue in H1 2025, which resulted in raising the full-year pre-tax profit guidance to $452.6 million from $440.2 million.
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