Finotec Trading 2019 Revenue Dips 31%, Shifts Focus to Fund Management

FCA-regulated broker, Finotec Trading UK Limited (FTUK) has published its annual financials for the year ending on December 31, 2019, showing mixed performances across various metrics.

The overall revenue of the company declined year-over-year to £1.12 million (around $1.5 million) in 2019. This figure was at £1.63 million the year before.

The declined revenue from the business resulted in a pre-tax income of £59,774, compared to the previous year’s £107,656.

On the positive side, it cleared around 16 million transactions in the period, which was a 66 percent increase on the previous year. Additionally, it detailed that the demand for its products is increasing and more investors are participating in its asset management program.

“Our aim is to turn the focus of the company from a purely brokerage institute to offer investment services as well,” the company noted in the Companies House filing.

Fund Management Business Looks Strong

Moreover, Finotec highlighted the 36 percent annual return of its managed investment program over the past five years, which has a minimum entry barrier of $100,000.

The broker tied with Israeli research company, Yedidya Capital Markets Limited in 2015 to develop a trading algorithm that evaluated the market sentiment by analyzing the behavior of traders.

“The system monitors the performance of over 100,000 traders, whilst recording over 700,000 trades to acquire a deep understanding of trading patterns, strategies and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term,” the broker explained.

Finotec is now targeting to reach $20 billion in deposits by the end of 2020 and is additionally exploring a corporate transaction with Yedidya Capital to integrate two companies’ revenues generated from management and performance fees.