Valutrades £500k Loss Masks Positive Year for Broker

On Wednesday, retail broker Valutrades released its financial report for the 2018 fiscal year.

The trading firm saw significant growth in revenue last year, with turnover increasing to £2.28 million ($2.85 million). That was almost double the prior year's total of £1.22 million.

But the broker also saw a steep rise in its sales costs and administrative expenses. Ultimately, those two things left Valutrades with a loss of just over half a million pounds for the year.

Still, those numbers may Cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term the reality of what's going on at the firm.

Speaking to Finance Magnates, Valutrades CEO Graeme Watkins said that last year's losses were actually due to one-off costs related to regulatory changes.

"Last year's loss can be attributed to one off costs in relation to complying with the ESMA requirements and upgrading our FCA license," said Watkins.

"Valutrades has also stayed committed to excellent products and services over profitability. While other brokers have reported tougher trading conditions this year, Valutrades is on track for an improved performance in 2019. That comes on the back of a transparent, low cost and professional service offering."

Beating low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term

If Valutrades' losses can be attributed to one off costs, that means the broker pulled off quite a feat last year.

Most other retail brokers saw substantial declines in revenue because of regulatory changes and a sustained period of low volatility.

According to Watkins, Valutrades was better able to withstand those pressures because of its business model.

"Clearly 2018 was a difficult year for all European brokers with the introduction of ESMA's CFD restrictions," said the Valutrades CEO. "

"We believe the impact for Valutrades was lower than that it was to most of our competitors as we have never offered binary options or aggressive welcome bonuses to our clients."