Tera Europe Limited, which operates under the tradename TeraFXUK, published its financials for the year 2021, which ended on December 31, reporting an almost 274 percent increase in its annual turnover.
The revenue for the year came in at £1.39 million compared to £371,041 in the previous year. Additionally, its sales cost jumped by more than 235 percent, but its administrative expenses declined.
The brokerage ended the year with a pre-tax loss of £620,361, which is almost half of the loss reported in the previous annual financial report.
TeraFXUK provides non-advisory matched principal brokerage services with financial instruments. The broker primarily offers contracts for differences (CFDs) instruments with forex and other asset class.
The latest Companies House filing of the broker highlighted that it is shifting its focus from forex business in the global marketplace to capital market securities business with an international reach to broaden its offerings and activities.
“Equity securities trading went through a challenging period in 2021 due to market volatility in the Company’s main markets as a result of Covid; however, the business recovered steadily towards the end of 2021,” the filing stated, adding “the Company expects revenue from Capital Markets Securities Business to grow in 2022 and exceed the Forex Business in generated revenue.”
In addition, TeraFXUK revealed that the trading volume on its platform spiked by 82 percent last year to £11.6 billion, generating an operating income of £0.4 million. Trading activities with equities increased significantly, touching £737 million in volume and generating £0.9 million in income.
Moreover, the broker launched spread betting services in mid-2021 that witnessed £2.6 billion in trading volume and £0.06 million in income.
However, it expects its business conditions to be lacklustre in the first half of 2022 because of the global risk aversion due to the ongoing Russia-Ukraine war but with a gradual pick up in the second half.
New License
Also, the broker is focused on expanding its global footprint. It is now seeking a new license from the Polish financial market regulator, KNF. When approved, the license will allow the broker to offer trading services in the European Economic Area. It is expecting to receive the Polish license by Q2 of 2022.
Furthermore, Tera Europe is operating in the Middle East under its DIFC-regulated subsidiary.
“The client base of the company has seen an increase in corporate and professional clients, moving further away from the concentration in retail clients affected by ESMA intervention measures and permanent FCA leveraged product’s restrictions,” TeraFXUK added.
“There is continued greater emphasis in developing relations with more experienced professional traders and corporate clients and to trading in equities.”
