IronFX UK 2014 Revenues Almost $7 Mln According to Regulatory Filing

Recently, IronFX has been mired in a controversy surrounding client withdrawal requests and in the midst of a CySEC investigation while the CEO of the company’s UK unit, Stefanos Mitsi, parted ways with the brokerage. When all is said and done, however, IronFX Global UK, the UK entity of IronFX, regulated by the U.K. Financial Conduct Authority, has marked 2014 as a profitable year.

Finance Magnates' reporters learned from a regulatory filing of the UK Companies House that the company has substantially grown its revenues from the IronFX Global UK entity. The total result was $6.9 million, which is materially higher than the figure reported in 2013 ($815,576).

Pretax profits for the year totaled $329,433, when compared to $38,839 in 2013.

The document also details that the firm was granted a matched-principal broker license from the FCA, the term which the U.K. Financial Conduct Authority (FCA) uses to describe an agency model brokerage (STP or Straight-Through Processing).

With this information at hand, the UK unit of IronFX could have been exposed to the negative effects of the Swiss National Bank (SNB) Crisis Swiss National Bank (SNB) Crisis The Swiss National Bank (SNB) Crisis occurred when the SNB abruptly announced it was abandoning its currency peg to the Euro on January 15, 2015.The following upheaval on the forex market has led it to being classified as a Black Swan event, given its seismic impact on currency markets and the retail brokerage industry. In particular, on January 15, 2015, the Swiss franc (CHF) quickly rose by almost 30 percent in value against most major currencies. This lasted for nearly 45 minutes during which The Swiss National Bank (SNB) Crisis occurred when the SNB abruptly announced it was abandoning its currency peg to the Euro on January 15, 2015.The following upheaval on the forex market has led it to being classified as a Black Swan event, given its seismic impact on currency markets and the retail brokerage industry. In particular, on January 15, 2015, the Swiss franc (CHF) quickly rose by almost 30 percent in value against most major currencies. This lasted for nearly 45 minutes during which Read this Term which hit the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term markets on the 15th of January this year.

The statement filed with the Companies House on April 2015 reads, “The company’s activities expose it to a variety of financial risks, which have continually evolved as the business has grown and activities have expanded into a matched principal brokerage.”

Operating Metrics for 2014

The net profit for the year ending on the 31st of December, 2014 totaled $243,973. For the year, IronFX Global UK’s total current assets including total receivables and cash equivalents amounted to $3.86 million.

Looking at the yearly costs of the broker’s operations in the U.K., the figure totaled $3.84 million with the average monthly number of employees in 2014 amounting to 85.

As of December 31st, 2014, the total sum of cash held on behalf of clients amounted to $799,102.

Interestingly, the regulatory filing also reveals that IronFX Global UK donated £5,000 to the UK Conservative party.