On Wednesday, retail broker Valutrades released its financial report for the 2018 fiscal year.
The trading firm saw significant growth in revenue last year, with turnover increasing to £2.28 million ($2.85 million). That was almost double the prior year’s total of £1.22 million.
But the broker also saw a steep rise in its sales costs and administrative expenses. Ultimately, those two things left Valutrades with a loss of just over half a million pounds for the year.
Still, those numbers may cloud the reality of what’s going on at the firm.
Speaking to Finance Magnates, Valutrades CEO Graeme Watkins said that last year’s losses were actually due to one-off costs related to regulatory changes.
“Last year’s loss can be attributed to one off costs in relation to complying with the ESMA requirements and upgrading our FCA license,” said Watkins.
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“Valutrades has also stayed committed to excellent products and services over profitability. While other brokers have reported tougher trading conditions this year, Valutrades is on track for an improved performance in 2019. That comes on the back of a transparent, low cost and professional service offering.”
Beating low volatility
If Valutrades’ losses can be attributed to one off costs, that means the broker pulled off quite a feat last year.
Most other retail brokers saw substantial declines in revenue because of regulatory changes and a sustained period of low volatility.
According to Watkins, Valutrades was better able to withstand those pressures because of its business model.
“Clearly 2018 was a difficult year for all European brokers with the introduction of ESMA’s CFD restrictions,” said the Valutrades CEO. ”
“We believe the impact for Valutrades was lower than that it was to most of our competitors as we have never offered binary options or aggressive welcome bonuses to our clients.”