The UK registered arm of international FX broker FXPro has reported disappointing financial results for FY2019, according to Finance Magnates. The broker indicated that they experienced a decline of 59% in revenue, which resulted in a loss of £221,724.
In its report the broker points out worse than expected trading volumes for 2019, which amounted to $55 billion, while this figure was $142 billion in 2018. Furthermore, FXPro specifically mentioned that the poor performance was a result of “the measures imposed by the European Securities Market Authority (ESMA) which include the restrictions on marketing and the distribution of CFDs to retail investors.” This rationale is based on the fact that in 2018 retail trading volumes at the broker were also weak, but generated significantly more revenue from client trading. Furthermore, the broker said that they decreased expenditures during 2019 as well by 23% as a result of staff cuts and reduced commissions to introducing brokers.
Nonetheless, the recent Covid-19 related market volatility should help FXPro rebound financially once 1Q 2020 results are made available, as many UK registered FOREX brokers have already reported better than expected short-term financial results as volatility has reentered the market in the last few months.
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