The broker highlighted a rise in expenses due to its marketing efforts.
It added 14,623 customers with funded accounts.
The revenue of ActivTrades, a London-headquartered forex and CFDs broker, nosedived to £27.5 million in 2023 from the previous year’s £50.2 million, a decline of 45.2 percent. Further, the broker turned a net loss of £5.8 million, down from a profit of almost £16.3 million.
A Struggling Year for ActivTrades
The latest Companies House filing by ActivTrades PLC shows that the company’s sales cost did not follow the revenue decline, staying at £2.8 million, compared to £2.9 million in 2022. However, administrative expenses last year increased by 17 percent to £34.4 million.
“The notable rise in our expenses this year primarily stems from enhanced marketing efforts,” the filing stated. “We’ve been actively exploring new markets and expanding our customer base, which necessitated a higher investment in marketing activities.”
Improvement in Customer Metrics
The strategy might have paid off, as the broker managed to identify 206,690 new potential clients in 2023, of which 14,623 became customers with funded accounts, a yearly rise of 80 percent. At the year's end, the broker had 27,943 active clients, an increase of 37 percent.
Further, the monthly trading volume on the brokerage platform averaged $56.4 billion, a 9 percent increase.
“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. The Group will continue to innovate and to provide new financial products for its customers,” the filing added.
“As the customer base has become more spread out across the world and demand has continued to grow, the Group has established entities outside of its headquarters in London.”
Indeed, apart from the UK operations, the ActivTrades brand is operated by entities in the Bahamas, Luxembourg, and Portugal. Another entity in Brazil is also readying to start trading. All these entities operate as subsidiaries of the UK entity, and their combined performances are reported in the consolidated financial statement.
“Historically, the Group has had a high market share in occidental European countries,” the filing continued. “In the last few years, the Group has invested more heavily in acquiring clients from newer markets, particularly in Latin America, to develop the opportunities in these markets to their full potential.”
The revenue of ActivTrades, a London-headquartered forex and CFDs broker, nosedived to £27.5 million in 2023 from the previous year’s £50.2 million, a decline of 45.2 percent. Further, the broker turned a net loss of £5.8 million, down from a profit of almost £16.3 million.
A Struggling Year for ActivTrades
The latest Companies House filing by ActivTrades PLC shows that the company’s sales cost did not follow the revenue decline, staying at £2.8 million, compared to £2.9 million in 2022. However, administrative expenses last year increased by 17 percent to £34.4 million.
“The notable rise in our expenses this year primarily stems from enhanced marketing efforts,” the filing stated. “We’ve been actively exploring new markets and expanding our customer base, which necessitated a higher investment in marketing activities.”
Improvement in Customer Metrics
The strategy might have paid off, as the broker managed to identify 206,690 new potential clients in 2023, of which 14,623 became customers with funded accounts, a yearly rise of 80 percent. At the year's end, the broker had 27,943 active clients, an increase of 37 percent.
Further, the monthly trading volume on the brokerage platform averaged $56.4 billion, a 9 percent increase.
“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. The Group will continue to innovate and to provide new financial products for its customers,” the filing added.
“As the customer base has become more spread out across the world and demand has continued to grow, the Group has established entities outside of its headquarters in London.”
Indeed, apart from the UK operations, the ActivTrades brand is operated by entities in the Bahamas, Luxembourg, and Portugal. Another entity in Brazil is also readying to start trading. All these entities operate as subsidiaries of the UK entity, and their combined performances are reported in the consolidated financial statement.
“Historically, the Group has had a high market share in occidental European countries,” the filing continued. “In the last few years, the Group has invested more heavily in acquiring clients from newer markets, particularly in Latin America, to develop the opportunities in these markets to their full potential.”
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
X Open Hub’s CEO, Michal Copiuk, on the developments of AI
X Open Hub’s CEO, Michal Copiuk, on the developments of AI
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
FX and CFDs in Africa: Key Industry Trends | FMAS:24
FX and CFDs in Africa: Key Industry Trends | FMAS:24
As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation's impact on trading –the role of technology, social platforms, and automated systems in democratizing market access.
SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
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As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation's impact on trading –the role of technology, social platforms, and automated systems in democratizing market access.
SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
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Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24
Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24
Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns.
SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
📣 Stay updated with the latest in finance and trading!
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Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns.
SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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