Trade Nation, a spread betting and contracts for difference (CFD) provider, experienced lower turnover in its UK operations, resulting in a financial loss of £2.2 million.

Trade Nation Reports Decreased Revenue and Net Loss in 2023 for UK Operations

Trade Nation is a retail trading brand that offers services to clients worldwide, with registered and licensed entities in the UK, Australia, Bahamas, Seychelles, and South Africa.

However, the company's main headquarters is in London, where it operates under Trade Nation Financial UK Limited, licensed by the FCA. This entity recently published its 2023 results, which were worse than those of 2022, showing a 5% decrease in turnover and over 300% drop in operating profit.

The reported turnover was £13.4 million, down from £14 million the previous year. The operating profit of £1.2 million turned into a loss of £2.6 million. The net loss amounted to £2.2 million, compared to a £1.2 million profit reported in 2022.

“The UK retail market resulted in an increased turnover under its FCA license and continues to be a key operational jurisdiction for the business,” the company commented in the report. “While overall turnover including management charges fell in 2023, other related entities operating in different jurisdictions continued to see growth in customer numbers.”

The company further explains that the net loss was not due to lower turnover, which decreased modestly compared to 2022, but rather to an increase in staff numbers and marketing and advertising expenses.

Administrative costs indeed rose, increasing by 26% from £12.5 million to £15.7 million in 2023. The number of employees grew from 66 to 83, and salary-related expenses increased by £2 million to £7.3 million.

Interestingly, analyzing the report reveals that the largest portion of the British company's turnover does not come from UK activities, but from North America. Of the nearly £14 million in revenue, £10.1 million was generated in that market.

In its latest move, Trade Nation announced its integration with the TradingView platform. This enables users to trade CFDs and spread bets on more than 1,000 markets, including forex pairs, indices, commodities, and global shares, using TradingView's advanced charting tools.