ActivTrades, a London-headquartered forex and CFDs broker, ended fiscal 2022 with a massive uptick in its financials and other performance parameters. It netted £16.3 million in profits last year on revenue of £50.2 million.
Solid Performance of ActivTrades
According to the latest Companies House filing, the broker’s revenue jumped by more than 50 percent in a year, from £33.4 million in 2021. The pre-tax profit of the broker came in at £19.3 million, increasing from £4.1 million the previous year. The net profit also increased to £16.3 million from £3.4 million, a growth of about 380 percent.
“The increase in revenue was primarily driven by market volatility in the financial markets and increase in customer base,” the filing stated.
Indeed, the ActiveTrades group added 8,118 new customers who funded their accounts last year, a jump of 2 percent from the previous year. With this addition, there were 20,339 active clients on the brokerage platform by the end of 2022, a yearly jump of 5 percent.
The brokerage further revealed that the total deposits from its clients reached £103.1 million from £95.7 million. It also witnessed withdrawals of £55.9 million, higher from £527 million. The average monthly trading volume on the platform came in 24 percent higher at $51.8 billion.
“The Group’s strategy is to retain its customer base through providing excellent customer service, as well as reaching out to more customers via direct marketing campaigns and promotions in the local markets in which it operates,” the filing added. “The Group will continue to innovate and to provide new financial products for its customers.”
Two New Licenses
ActivTrades operates in the UK with a Financial Conduct Authority license. Last year, the group obtained two new brokerage licenses, one in Brazil and the other in Portugal, which will bolster its operations in Latin America and European Union. Services under the new licenses are expected to begin in 2023.
It also has two other subsidiaries holding brokerage licenses in foreign jurisdictions – Bahamas and Luxembourg. The London-based company further has a Bulgarian branch offering IT and risk management services. Moreover, another subsidiary of ActivTrades securitizes loans as collateral for external bank funding.
“The Group aims to continue its specialist lending business, which focuses on unregulated short-term real estate loans written to UK-domiciled borrowers,” the broker added in the filing. “This business is now providing a significant diversified income stream for the Group.”
This article was written by Arnab Shome at www.financemagnates.com.
