The United Kingdom-headquartered parent of FXOpen trading brand published the financials of the year ending on 31 December 2021, reporting a massive jump in revenue. It generated £611,705, which is almost 146 percent higher than the previous year.
Additionally, the cost of sales increased significantly and the brokerage parent’s gross profit came in at £450,217. However, after considering an administrative expense of £853,713, which was reduced from the previous year’s £943,018, the company sank to an operating loss of £403,496.
The total comprehensive loss for the financial year, after including a loss of £53,426 to foreign exchange , came in at £456,913, compared to a loss of £772,653. The yearly loss of the brokerage arrowed down by almost 41 percent.
Earning from Commissions and Spreads
FXOpen offers retail trading services with currency pairs and contracts for differences (CFDs) of stocks, indices, commodities and a few other asset classes. Its primary source of revenue is from the commission charged on trades and is thus directly dependent on trading volumes on its platform.
“The results for the year and the financial position at the year represent tough market conditions. During the course of 2021, the group maintained its client base in [the] UK and other markets. Improvement in turnover, as compared to 2020, reflected [an] increased client base,” the Companies House filing stated.
Now, as a part of its corporate strategy, the brokerage group continued to expand its client base in the UK and globally. It is also broadening its client base and onboarding both professional and retail traders.
FXOpen secured its post-Brexit European presence with the acquisition of Cyprus-regulated broker AMB Prime in July 2020. It is operating as FXOpen EU within the EU and expanding into the European markets with its Cypriot entity.
