Tera Europe Limited, a multi-asset trading platform based in the UK, published its financials for 2022, reporting a total turnover of over £4.9 million, which is an increase of 277 percent. Out of the total, the broker generated a record £3.8 million from contracts for differences (CFDs) trading and the remaining £1.07 million from equities trading.
Trading Demand Jumps on Tera Europe
The latest Companies House fling of the UK company detailed that the trading volume in the forex business of the company increased 64 percent year-over-year to £18.9 billion. It also handled £547 million in equities volume. Although the equities volume increased 50 percent, the rise in volume was only 17 percent.
"The Company shafted focus from Forex Business on the global marketplace to Capital Market Securities Business intending to broaden its product offering and brokerage activities," the filing stated.
"Equity securities trading went through a challenging period in 2022 due to market volatility in the Company's main markets because of the Ukraine war and inflationary pressures leading to a global interest rate rise; however, the business recovered steadily towards the end of 2022, with volumes increasing in FX markets and equities."
Closed 2022 with Profit
Diving into the company's income sheet, its sales cost in 2022 jumped along with the turnover. It went up to £2 million from £801,253 seen in the previous year. Its administrative expenses were reported at £1.6 million, which is up from £1.25 million.
Considering all income streams, the broker ended the year with a pre-tax profit of £1.6 million compared to a loss of £620,361 in the previous year. The company netted £1.5 million in 2022 after taxes.
For 2023, Tera is expecting its equities business revenue to grow even further. It is strategically reducing its reliance on the CFDs business, specifically the retail segment of the market.
"The company expects general business conditions to be lackluster in the first half of 2023 because of global risk aversion and specifically election risks in Turkey with a pickup in the second half of the year," the filing added.
Moving Away from Retail
Meanwhile, the broker aims to expand into the European markets and has already applied for a Polish license, which is expected to be received in 2023. Earlier, the broker opened a Dubai branch.
"The client base of the Company has seen an increase in corporate and professional clients, moving further from concentration in retail clients affected by ESMA intervention measures and permanent FCA leveraged product's restrictions. There is a continued emphasis on developing relations with more experienced professional traders and corporate clients, and to trading in equities," Tera added.
