EC Markets Group Limited (previously known as GCM Prime), an FCA-registered brokerage, resumed its operations last year, generating an annual turnover of $187,000 by the end of December 2022.
GCM Prime Reenters the Market under New Ownership
However, it continued to be a loss-making company with an operating loss of $660,140, compared to $779,996 in the previous year. The London-based company made a gross loss with a sales cost of $191,207. Further, administrative expenses of $656,433 were higher than the previous year’s figures of $643,372, pushing the losses even deeper.
The broker ended the year netting a loss of $659,579, following a minimal interest income of $565.
Under its FCA license, EC Markets offers the margin spot forex and contracts for differences (CFDs) instruments of precious metals, indices, and crude oil.
“The Company’s principal activity during the period continued to be that of an execution-only trader brokerage of CFD and rolling spot forex,” the Companies House filing stated.
Apart from the UK entity, the EC Markets brand operates with two offshore licenses: one obtained from the Seychelles Financial Services Authority and another from the Mauritius Financial Services Commission. The retail-focused services under the offshore entities are also much broader with cryptocurrency CFDs.
The Fast Fall of GCM Prime
GCM Prime shuttered its services in 2017, only a couple of years after its launch, after recording losses of close on £4 million ($3.87 million), Finance Magnates reported earlier. The prime of prime brokerage firm’s problems can be traced back to the first few months of 2017 when Gallant Capital Markets, a retail broker known as GCMFX, filed for bankruptcy .
GCM Prime had no connection to GCMFX despite its similar-sounding name. However, rumors spread across the industry that there was indeed a connection between the two firms and that GCM Prime would be negatively impacted by the broker’s bankruptcy filing. London-based Chinese entrepreneur Xiaoliang Lyu later acquired the assets of GCM Prime, leading to the rebranding of the platform.
