FCA-regulated broker, Finotec Trading UK Limited (FTUK) has disclosed its annual financials for 2020, ending on December 31. The company’s revenue increased by 41 percent with more than $1.5 million.
Additionally, transactions on the platform skyrocketed as it cleared 3 billion in client transactions over the year. The volume-based transactions climbed by 110 percent year-over-year.
Finotec offers Execution and clearing services to professional traders, brokers, investors, asset managers and hedge fund operators. The platform requires a minimum investment of $100,000 from its clients and does not onboard any retail traders.
In addition, the broker provides ancillary technologies and investment management solutions. “Finotec provides a diverse range of customized services to its clientele, as well as the tools and systems needed to set up and operate their flourishing FX Business,” the broker noted.
Massive Jump in Profits
Along with the total revenue, the cost of sales associated with the broker’s operations also increased. But, there was a decline in administrative expenses. The brokerage has ended the year with a profit of £313,792, which is a significant increase from the previous year’s £59,774.
Moreover, the Companies House filing highlighted the impact of the pandemic and Brexit on Finotech’s business. “Despite this, Finotec continues to attract interest in its growing portfolio of higher tier products and services and has recently expanded into the provision of Hedge Fund solutions to regulated Asset Managers,” the broker explained.
Furthermore, it detailed that the Hedge Fund setup process takes only 2 weeks to complete. While the setup process itself costs €15,000, the broker then charges at least €2,000 as a monthly service fee.
“The immediate consideration for Finotec is a monthly transaction volume of more than $1 billion for each $1 Million AUM, which would generate an additional income of up to $15,000 (including price improvements) per month,” the broker added.
“Finotec’s target is to reach $US20 million in total deposits by the end of 2021.”
