Finance Magnates has learned that the forex and CFD trading platform HYCM (Europe) is voluntarily renouncing its CIF License. In a statement published on its website, the company mentioned that it will no longer accept new clients or open new accounts for individuals based in the EU.

Additionally, HYCM Europe is in the process of terminating services for all existing clients in the region. However, the company will ensure that users are informed about how they can access their funds. The firm has not provided specific details regarding the reasons for this decision.

Terminating Services in the EU

HYCM Europe wrote: "We would like to inform you that HYCM (Europe) Limited (the Company) hereby notifies you that it is in the process of voluntarily renouncing its CIF License with authorization number 259/14."

"Therefore, the Company will no longer accept any new EU-based clients and/or the opening of any new EU-based accounts while it is in the process of terminating all its existing EU-based clients and informing them about the procedure that should be followed for their fund's return."

The brokerage firm has directed clients seeking clarification to compliance@hycm.com and those with complaints to send their emails to complaints@hycm.com. Finance Magnates contacted HYCM for comments and will update this article once we get their feedback.

Meanwhile, the Cyprus Securities and Exchange Commission indicated on its website that HYCM Europe is under examination for voluntary renunciation of its authorization.

HYCM's Financial Performance

Last year, HYCM Capital Markets (UK) Limited released its financial performance for the fiscal year ending December 31, 2022. Despite experiencing a notable surge in revenue, the company faced a decline in profitability compared to the previous year.

The company's turnover soared to over £1.88 million, marking a substantial increase of 14% from the preceding year. This surge in revenue was attributed to various factors, including a significant boost from 'other operating income' sources, which skyrocketed to £697,335 from £5,464 in the previous fiscal year.

However, amidst this growth in revenue, HYCM UK encountered a significant rise in administrative expenses, which surpassed £2.57 million. This represents a substantial increase of 43% compared to the previous year.

Despite the uptick in revenue and supplementary income, HYCM UK's operating profit for the year amounted to a modest £13,088, significantly lower than the £198,050 recorded in the preceding fiscal period. The company attributed this decline to the surge in administrative expenses.