Exclusive: GBE Brokers 2017 Figures Show €7.8m Revenues, Low Vol Bites

According to an official audited statement of the annual accounts of GBE Brokers in 2017, the firm reports a total of €7.8 million of revenues. The document seen by Finance Magnates shows that the company’s operating profit declined in line with lower Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in the latter half of the year.

Commenting to Finance Magnates, the company's CEO Rifat Sayim and Head of GBE Prime, Ben-Florian Henke, stated that the decline was attributed to lower levels of volatility in the latter half of the year. A one-off administration accounting adjustment related to the company’s administrative expenses also played a role.

GBE Brokers posted a decline in operating profits to about €150,000, a figure which is lower by about 60 percent when compared to 2016. The company retains a solid capital base with approximately €1.8 million of cash on its accounts.

Looking at the composition of revenues, GBE Brokers posted a total of €2.7 million from commission income and €5.1 million from principal trading. The company’s annual compensation costs totaled €2 million for 24 employees.

Revival of Volatility

Like many other companies in the industry, GBE Brokers has been looking at higher volatility across major asset classes this year. The firm has been posting upbeat results during the first five months of the year, with ample volatility across equities and currencies.

Brokers who have avoided the cryptocurrency scene in the final quarter of 2017 have also managed to sidestep the crypto volatility trap which caught some brokers ill-prepared. The conservative approach on the part of some firms in the final months of last year saved them exposure to the most-risky asset class as classified by financial regulators worldwide.

The first half of 2018 seems to be putting brokerage businesses on track to report substantial profits in the coming months. The extra revenue before the implementation of ESMA's lower Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term mandate is likely to provide a cushion for the industry before a possible increase in M&A deals.