This is certainly the surprise of the month as Alpari isn't a public company and isn't obligated to publish any results. Such steps are unusual and often imply an intention to go public. Those with good memory will remember that FXCM started releasing some of its numbers, mainly balance sheet results, couple of years before it went public. The only other non-public forex broker to disclose its numbers is Saxo Bank - but this may be due to Danish banking regulations.
More than anything the report below is rather an extensive description of Alpari's latest developments and intentions as the only 'real' numbers we get to see is updated volume and number of customer accounts (not only active) across the Alpari group of companies. Unfortunately we don't get to see total customer funds or 2010 revenue or net profit. But this is a start and I'm sure once Alpari get more confidence they will release additional figures.
Taking a look at the numbers I can see that although Alpari group reports $160B in monthly volume it doesn't say whether this is both retail and institutional or just retail. I'll assume it's both and therefore retail volume is probably around $120-140B a month. If so, this pretty much resembles Gain Capital's volume and thus we can safely assume that Alpari had an operating income of about $180-200 million in 2010 and net profit in the region of $30-35 million.
Highlights:
- Over 440,000 customer accounts* worldwide
- Alpari companies’ monthly trading volumes exceed $160 billion** in 2010
- New products, platforms and services
London, 18 April 2011 – The Alpari companies (“Alpari”), which are among the world’s fastest growing providers of online foreign exchange (“Forex”, “FX”) trading services, are delighted to announce their figures and achievements for the full year 2010 (1 January – 31 December). During the year the companies continued to add products and services, opened new offices and increased staff globally, further consolidating their strong position in the global Forex market.
Andrey Vedikhin, CEO of Alpari (UK), says, “We would like to thank our customers for choosing Alpari. Our clients want choice, competitive pricing and excellent client service – we are here to exceed expectations. The success of our companies throughout 2010 is reflected in our record monthly trading volumes of over $160 billion** globally and the increase in customer accounts to over 440,000*.”
New products, platforms and services
During 2010, the Alpari companies launched even more products and introduced new account types and platforms. Alpari (UK) added contracts for difference (CFDs) to its product portfolio last year – an offering which was already expanded early in 2011 due to client demand. The CFD clients of Alpari (UK) now enjoy access to 10,000+ markets via our brand new trading platforms QTrader and L2 Dealer.
In late 2010, Alpari (US) launched the demo version of Alpari FXOptions, a platform which combines existing multi-bank spot Forex Liquidity with options pricing from top-tier banks to give clients greater flexibility to manage their trading strategies and risk exposure. The live version of the Alpari FXOptions Trading Platform was released several weeks ago and is now available to all Alpari (US) clients. Alpari (US) was the first US retail broker to offers spot FX and options trading from one margin account.
In 2010, Alpari Forex (India), a subsidiary of Alpari (UK), launched exchange traded currency derivatives, which symbolised not only a major step for the Alpari team in India and its clients but also the further development of the Indian Forex market as a whole. Alpari Forex (India) also became a member of three stock exchanges and opened a new office in Ahmedabad last year.
Alpari (Deutschland), another subsidiary of Alpari (UK), established a new office in 2010 in Frankfurt, Germany. The Frankfurt office serves and expands Alpari’s large client base across the German-speaking regions in Europe.
The Alpari companies’ clients were among the first traders to get a chance to test the unique capabilities of MetaTrader 5 when each Alpari company started offering the demo version of this highly anticipated next generation trading platform on our websites in early summer 2010. David Stuart, COO of Alpari (UK), remarks, “Technology is paramount to our business’s success. We strive to always be ahead of the competition and partner only with innovative and forward-thinking technology providers.”
In 2010, Alpari (UK) enhanced the automated portfolio trading experience with the release of the new version of Systematic. Systematic V2 simplifies the process of diversifying Forex investments with a wide range of time-tested trading strategies developed by Forex professionals. Because of the popularity of Systematic V2 amongst the client base of Alpari (UK) and its subsidiaries, Alpari (US) is now preparing to make it available in the US.
With the launch of MT4 Pro last year, Alpari (UK) combined one of the most popular retail trading platforms with institutional-level liquidity and pricing. Pro-account holders can now capitalise on direct market access and trade more than 50 currency pairs with tight spreads from 0 pips with ultra-fast straight-through processing. Alpari (US) also launched their MT4 Pro trading solution in early 2010 enabling access to US traders.
Each Alpari company has again improved its analysis and research offering to its respective client base. With in-house analysts and a 24-hour dealing desk, the Alpari companies have never been better poised to offer their clients up-to-the-minute and insightful market analysis. They have the ever popular Trading Central and Autochartist services, which also expanded their offering during 2010. The services continue to help clients through the perilous world of trading on the financial markets. In addition to these, clients also receive Alpari Squawk and Web TV live from the New York Stock Exchange provided by Trading Central.
The Alpari companies’ global expansion
Rapid global expansion means the Alpari companies are always looking to add true leaders in the industry to the Alpari team. Alpari (US) made its most significant recruitment to date at the executive management level when it appointed Daniel Skowronski as CEO of Alpari (US) last year. Skowronski, a former Managing Director of technology provider Currenex®, has been spearheading major new technology initiatives and driving the obvious growth of Alpari (US) as well as the Alpari brand globally. Skowronski will soon be relocating to the UK and take on the role of Chief Commercial Officer at Alpari (UK). This will be in addition to his role as CEO of Alpari (US).
Skowronski says, “The Alpari companies have a unique concept which will contribute significantly to the development of the global Forex industry. I recognise that technology will be the driver behind Forex market growth and our companies’ expansion. Our teams will focus on big-impact initiatives that will revolutionise the way we trade Forex today. Alpari (UK) has recruited Patrick McTurk. As the Global Head of Product Development for Alpari (UK), McTurk is working to bring the sales and new business development sides of Alpari (UK)’s business closer together.”
McTurk spent nine years at Currenex®. As Vice President of Margin Trading Solutions, he was responsible for driving the product strategy on margin trading products and managing margin clients and the Currenex® business in Europe.
In late 2010, Mushegh Tovmasyan also joined Alpari (UK). Based in London, Mushegh is the new Global Head of Sales for Alpari (UK), in charge of further developing the company’s sales teams and operations. With his wealth of new business development experience, Mushegh will be instrumental in introducing new platforms and trading products for Alpari (UK)’s solutions across all asset classes.
Skowronski comments, “Our clients benefit from our global footprint. Historically, we have focused mainly on the global retail finance sector and with the experience we’ve gained over the years, we’re now well positioned to further expand our institutional offering. I regard it as our responsibility to offer our expertise to both an expanding retail and institutional sector.”
QuantumFX
One of the year’s highlights on the institutional side of the business was the creation of QuantumFX, a state-of-the-art trading platform providing corporations, hedge funds, banks and high frequency trading institutions with access to a diverse and deep liquidity pool via a central clearing counter-party model with multiple execution mechanisms. QuantumFX is offered by Alpari (US). To steer the larger institutional offering, Alpari (UK) hired Mark Davison as Global Head of Institutional Sales at Alpari (UK). Davison brings with him over 20 years of Forex experience. Immediately prior to joining the company, he was Head of Institutional Sales EMEA at Forex Capital Markets.
QuantumFX enables access via third-party platforms and offers a full line of customised solutions, including but not limited to: custom front-end integration, efficient back office solutions, credit solutions, algorithmic trading capabilities and front and back end analytical report automation.
Skowronski says, “QuantumFX is ideally positioned with its portfolio of trading tools and support services to grow with the market. Forex is a truly global phenomenon and we expect to see continued growth from the developing countries as well as organic growth from the centres more traditionally recognised as major Forex domains.”
Alpari events and accolades
Alpari (UK) was very proud to receive several major industry awards in 2010: the Shares Magazine Best Active Trading Tools 2010, the World Finance Awards Best Execution House 2010 and three FX Traders’ Choice Awards.
In 2010, Alpari (US) secured its first major sports sponsorship deal when it negotiated a multi-year partnership agreement with Madison Square Garden. The deal makes Alpari (US) an Official Partner of the New York Knicks, New York Rangers and Madison Square Garden. More agreements of this kind are planned to introduce various audiences to the Alpari brand and associate Alpari with leaders in the world of entertainment. Alpari (Russia) became the official sponsor of Spartak Moscow. Associating itself with one of the top football clubs in the country and also on the international stage, reflects the position of Alpari (Russia) and the Alpari companies.
Alpari (UK) launched its first Forex Traders’ Contest, a competition to find the Alpari community’s “super trader”. Clients competed using demo accounts and Alpari’s comprehensive research tools. Alpari (UK) treated the most successful traders to a combined $20,000 in cash and trading credits. Due to the popularity of the contest Alpari (UK) is planning to offer more opportunities for traders to compete against their peers for top prizes throughout 2011.
In 2010, Alpari (UK) and Alpari (US) reached out to traders at major conferences in the US, the UK and Germany for the first time. Alpari (US) proudly acted as the Las Vegas Futures & Forex Expo’s Platinum sponsor and the Silver sponsor of the Traders Expo Las Vegas. Alpari (UK) was the international sponsor of the World MoneyShow in London and, through its subsidiary Alpari (Deutschland), the Gold sponsor of World of Trading 2010 in Frankfurt, Germany.
Currently confirmed conference sponsorships for the rest of 2011 include:
- 6th Jordan Forex Expo 2011; 2-3 May; InterContinental AMMAN-Hotel, Jordan
- The Futures & Forex Expo; 22-24 September; Caesars Palace in Las Vegas, US
- The Traders Expo Las Vegas; 16-19 November; Caesars Palace in Las Vegas, US
Alpari Forex (India) already welcomed traders in India at the Vibrant Gujarat event in January. Vibrant Gujrat is one of the biggest business events in the country and Alpari (India) played a major role in educating and informing visitors about Forex trading. Alpari (US) sponsored the Traders Expo New York and Alpari (UK) the London Investor Show FOREX in February as well as the International Traders Expo London in April. In March Alpari (Deutschland) contributed a trade stand and education to Invest 2011 in Stuttgart, Germany, and Alpari (UK) was also the official partner of the Middle East Forex Trading Expo in April.
The Alpari companies are looking forward to meeting their customers, present and future, over the course of the year. They also invite all traders to take part in the webinars that they are planning to host over the next few months. Dates and times will be announced on the Alpari companies’ websites.
What’s ahead
The Alpari companies have ambitious growth plans for 2011. Vedikhin says, “We are very excited to announce to our Japanese customers that Alpari (UK) has agreed to acquire the Japanese assets of CMS Forex; renamed Alpari (Japan). Through the acquisition we will be able to offer a full range of Alpari products and services to Japanese customers. Alpari (Japan) will be an independent entity providing trading services in Forex, CFDs and precious metals. We see great potential across Asia and specifically in Japan, a country which already has a very mature Forex market.”
Stuart adds, “There have been changes to our Dubai operations. The new entity operates under the name ‘Alpari ME DMCC’ and has been licenced by the Dubai Multi Commodities Centre. It is a member of the Dubai Gold & Commodities Exchange. We are very excited about reaching out even further to traders in this region. Alpari (UK) has also been running an onboard advertising campaign to reach out to all of Emirates global airline passengers.”
The Alpari companies plan to continue their global expansion in 2011. In the first quarter, Alpari in Cyprus received its CySec licence, strengthening the companies’ position in the region. Vedikhin comments, “We’ll be reviewing other potential locations and may make further location-related announcements as the year goes on. Our expansion in 2010 has laid the foundations for a very exciting 2011. Our aim is to bring many more trading products and services to people around the world.”
About the Alpari companies
With a history dating back to 1998, the Alpari companies (“Alpari”) are among the world’s fastest growing providers of online foreign exchange (“FX”, “Forex”) trading services. The group of Alpari companies has more than 50 offices in cities in over 20 countries, including London, New York, Shanghai, Dubai, Moscow, Mumbai and Frankfurt. Combined, the companies look after over 440,000 customer accounts*, generating monthly trading volumes in excess of $160 billion**, and employ over 550 people* worldwide.
Alpari (UK) Limited is an award-winning Forex, CFD and precious metals broker headquartered in the heart of the City of London and with offices in Germany, China and India. Alpari (UK) is authorised and regulated by the Financial Services Authority (FSA) in the United Kingdom. FSA Register number 448002. Company No. 05284142.
Alpari (Deutschland) GmbH, based in Frankfurt, is a wholly owned subsidiary of Alpari (UK). Alpari (Deutschland) provides investment services to retail and institutional investors in the German-speaking region as a tied agent of Falcon Asset Management GmbH, Königsallee 50, 40212 Düsseldorf, BaFin registration number 117767, according to § 2 Abs. 10 KWG.
Alpari Forex (India) Pvt. Ltd. is a subsidiary of Alpari (UK). The company was formed under the Indian Companies Act 1956 and incorporated in 2008. Providing currency trading services to Indian institutional and retail customers, Alpari (India) is a member of the NSE (National Stock Exchange of India), MCX-SX (MCX Stock Exchange) and USE (United Stock Exchange).
Alpari (US), LLC is one of the leading providers of online Forex, commodity futures, options and precious metals trading services. The company is based on Wall Street, in the financial district of New York City, where it is dually registered by the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer and has been a member of the National Futures Association (NFA) since 2007, member ID: 0379678.
Alpari ME DMCC is licensed by the Dubai Multi Commodities Centre, Dubai. The company is a member of the Dubai Gold & Commodities Exchange.
Alpari (Russia), established in 1998, is a leading Forex, CFD and precious metals broker based in Moscow and regulated by the Financial Regulation Agency in Russia.
Alpari Financial Services is based in Cyprus, CySec licence number 129/10.
Trading foreign exchange, commodity futures, options, precious metals and other over-the-counter products such as contracts for difference carries a high level of risk and client losses can exceed deposits. These products may not be suitable for all investors. For more information about the Forex industry and the regulatory protections offered to those who trade within it, please visit the Financial Services Authority (FSA), Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) websites at https://www.fsa.gov.uk, https://www.cftc.gov and https://www.nfa.futures.org
*December 2010 **November 2010
