FxPro UK, a subsidiary of FxPro Group, had a tough performance in 2021 even as the financial market boomed. The company, which is regulated by the Financial Conduct Authority (FCA), reported a net loss in 2021 as business activity waned.
FxPro UK’s revenue dropped to just £900k in 2021, which was about 48% below what it made in 2020. It had previously made £1.7 million in 2020 and over £4.4 million in 2017. As a result, the company’s total loss for 2021 came in at £545k.
At the same time, the volume of the company’s client assets dipped by 30% to £7.5 million from £10.47 million a year earlier. Net volume traded during the year fell by 40%^ to £38.8 billion.
The company also saw its total non-current assets crash from £678k to £321k. Total assets dropped to £4.3 million. Therefore, these results show that the company’s business in the UK is going through a rough patch. If this trend goes on, there is a high possibility that the company will leave the market.
FxPro UK is facing numerous challenges. For example, it is facing tough competition from the likes of IG Group, CMC Markets, and Plus500. Most of these companies have continued doing well in the past few months. In fact, IG Group is implementing a £150 million share repurchase program.
Other forex and CFD brokers are doing well. For example, ATFX and Exness have seen their monthly volumes surge in the past few months.
This post was last modified on Sep 26, 2022, 09:20 BST 09:20