ActivTrades, a London-headquartered forex and CFDs broker, ended the fiscal year of 2022 with a massive uptick in its financials and other performance parameters. It netted £16.3 million in profit last year on revenue of £50.2 million.

Solid Performance of ActivTrades

According to the latest Companies House filing, the broker's revenue jumped 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 in the previous year. Additionally, the net profit increased to £16.3 million from £3.4 million, which is 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 ActivTrades group added 8,118 new customers who funded their accounts last year, which is 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. Further, this is a yearly jump of 5 percent.

On top of that, the brokerage revealed that the total deposits from its clients reached £103.1 million from £95.7 million. It witnessed withdrawals of £55.9 million, which was higher than the £527 million withdrawn in 2021. 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 the European Union. Services under the new licenses are expected to begin in 2023.

Furthermore, it has two other subsidiaries holding brokerage licenses in foreign jurisdictions – Bahamas and Luxembourg. Also, the London-based company has a Bulgarian branch offering IT and risk management services. To add to that, 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."

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