Week In Review: Chaos at BDSwiss , IronFX Founder's Prop Firm, US FX Deposits, and More

BDSwiss Faces Mass Staff Exodus and Withdrawal Issues, Blames “Restructuring”

This week, we featured one of the top stories in the industry: mass layoffs and withdrawal issues at BDSwiss. Finance Magnates exclusively learned that the company witnessed the departure of at least ten employees, including several top executives, in the past few days. Moreover, dozens of traders on the platform have raised concerns about withdrawal issues.

“BDSwiss has made the decision to refocus and restructure its current business,” the broker wrote in a statement shared with Finance Magnates. “After assessing its global operations, management has decided not to continue operating in certain geographical regions. This decision has also impacted the staff at the headquarters.”

IronFX Founder Quietly Joined Prop Trading Craze with “Ultimate”

The founder of IronFX, Markos Kashiouris, expanded his presence in the retail trading industry with the launch of a prop trading platform, Ultimate Traders. The prop trading platform is operated by the UK-registered company Ultimate Traders Evaluation Ltd, incorporated in February 2023, with Kashiouris as the majority shareholder.

According to Companies House, Kashiouris holds more than 75% ownership of the prop trading platform. IronFX is a forex and CFD broker operated by Cyprus-registered and headquartered Notesco Financial Services Ltd, which was founded by Kashiouris. The broker brand also operates in the UK under a local entity regulated by the Financial Conduct Authority.

Another Prop Firm Suspends Operations, Claims It Was “Attacked and Blackmailed”

Keeping with the prop trading wild west, Fundedlions disappeared from the rapidly changing proprietary trading landscape. CEO Noman Iqbal asked users not to access their accounts for a few days as the company would be migrating to MetaTrader 5. In a letter addressed to clients, Iqbal states that the technology provider Dominion Markets is allegedly responsible for the company's problems.

According to the CEO, this is not the first time Fundedlions has been “attacked and blackmailed” by its business partner. Explanations posted on the company's official Discord reveal that Dominion Markets recently quadrupled the cost of creating an account, adding “unreasonable” additional fees.

Prop Firm Traddoo Temporarily Suspends Access for New Clients

Meanwhile, Traddoo, a retail proprietary trading company, announced that it is temporarily suspending challenge sales to new clients. For existing customers, it's business as usual. The change is due to updates being implemented in the current client platform.

According to information shared on Discord by Dylan Worrall, CEO of prop firm Traddoo, the company is currently working on introducing a new client dashboard, which will take several weeks. As a result, it warns its customers of “brief interruptions” and is suspending “new challenge purchases temporarily.”

Traders Await Payouts from This Prop Firm for Six Months

Amid the chaos in the prop trading space, other firms are struggling with regular pay. For instance, while The Funded Trader (TFT) has made many promises to its investors over the past few months, for most, the only important issue that remains is recovering frozen funds. The prop firm has been grappling with regular payout problems since late March.

However, this week, it presented a solution aimed at expediting the resolution. The firm announced through its official Discord that it had sent emails to users waiting for funds since March 28, when payouts were suspended, informing them if their withdrawal qualifies. Moreover, TFT is launching a new type of challenge, with part of the profits earmarked for clearing backlogged payouts.

IG Group Ends Q1 FY25 with 15% Revenue Jump

For the financial results, the London-listed IG Group ended the fiscal quarter between June and August, generating a total revenue of £278.9 million. This figure represents a 15% year-over-year increase. The broker highlighted that “higher revenue per client, supported by elevated volatility across a range of asset classes in early August,” boosted its revenue.

Out of the total figure, which also included interest income, IG generated £208.1 million from OTC derivatives, a 14 percent year-over-year increase, while exchange-traded derivatives revenue jumped 20 percent to £59.6 million. The remaining £11.2 million came from stock trading and investments.

Increased Costs Lead to 60% Profit Drop for Capital.com UK in 2023

Capital.com's UK branch published its financial results for 2023, reporting a significant decrease in net profit compared to the previous year. Although revenue saw a modest increase, income shrank by over 60% to $1.5 million. Capital Com (UK) Limited is responsible for Capital.com's brokerage operations in the UK.

The company's net trading profit reached $29.7 million, compared to $29.1 million reported in 2022. Thanks to much lower direct expenses, gross profit stood at $26.9 million, up from $22.8 million the previous year. However, Capital.com UK experienced a significant increase in administrative costs, which amounted to $23 million, up $7 million from $17 million in the previous period.

Hirose UK Achieves 79.7% Surge in Net Profit despite 1% Revenue Growth

Hirose Financial UK Ltd, a provider of online retail foreign exchange trading services, published its annual financials for the period ended March 31, 2024, revealing notable improvements in several key financial metrics. According to the Companies House filing, the company recorded a turnover of £717K, which represents a 1.03% increase from £710K in the previous year.

This modest revenue growth underscores a positive trend in the company’s business activities. Administrative expenses were reported at £431K, a slight decrease from £432K in the previous year. This reduction in administrative costs contributed to an improved operating profit, which reached £285K from £282K in the preceding year.

LCG UK Increases Revenue, but Net Loss Deepens by 30% in 2022

The UK branch of LCG published its financial results for 2022, showing an increase in revenue but a deepening net loss. The company earned just under £2 million, which is 25% more than the £1.6 million reported the previous year. London Capital Group Limited, which is directly owned by FlowBank, is responsible for LCG's operations in the UK.

The parent company, however, has been in liquidation since June 2024 following a decision by the Swiss regulator. For a brief period, the British FCA imposed restrictions on LCG, preventing them from onboarding new clients or accepting their funds.

RoboMarkets Adjusts its European Business Model, Aiming to Lead in Stock Brokerage

Elsewhere, RoboMarkets group announced changes to its European business model, which are planned to be implemented by the end of 2024. In a press release, the group stated: “Given the conditions of the European market, we have decided to focus our European operations and expertise on serving primarily stock investors and traders.”

As part of this shift, the Frankfurt-based and BaFin-regulated entity, RoboMarkets Deutschland GmbH, will become the center for serving European retail clients, concentrating exclusively on stocks, bonds, and ETFs. The Cyprus-based and CySEC-regulated RoboMarkets Ltd will transition to an institutional broker and no longer serve retail clients from early 2025.

US Forex Deposits Hit Lowest Level Since February 2024

Despite volatility in financial markets, the summer period brought lower engagement from individual investors in the US and a decrease in the value of their deposits. According to the latest results, they have reached their lowest levels in nearly half a year.

According to the data from the Commodity Futures Trading Commission (CFTC) for July 2024, the total value of FX deposits in the US amounted to $545.5 million, falling 2.2% from the $557.5 million reported in June. In nominal terms, this translated to a decrease of $12 million and gave the worst result since February 2024.

eToro USA Settles with SEC for $1.5M and Restricts Crypto Trading: Eyes US IPO

In the crypto space, the Securities and Exchange Commission (SEC) announced this week that eToro USA will pay $1.5 million to settle charges related to operating an unregistered broker and unregistered clearing agency. The settlement comes as the company is considering listing its shares, with the US as a potential destination.

The company is currently exploring an initial public offering in either New York or London. According to eToro, a US listing would provide access to a broader range of investors compared to the British market. The charges arise from eToro's trading platform, which facilitated the buying and selling of certain crypto assets classified as securities.

UK Tables New Bill to Clarify Legal Status of Digital Assets

UK lawmakers introduced a bill that defines digital assets as “personal property” and categorizes them as “things.” The proposed Property (Digital Assets, etc.) Bill would specify the category of digital holdings, including cryptocurrency, non-fungible tokens (NFTs) like digital art, and carbon credits.

According to the official press release on Wednesday, the proposed legislation aims to advance the country’s laws on digital assets. It would define digital assets that are not currently classified under existing laws and are in a legal grey area.

TD Markets Secures Crypto Asset Service Provider License in South Africa

Elsewhere, TD Markets obtained a Crypto Asset Service Provider license from South Africa's Financial Sector Conduct Authority (FSCA). The license authorizes TD Markets to offer regulated cryptocurrency services, enhancing security and consumer protection in the rapidly growing digital asset market.

“As an FSCA-licensed broker, we are now authorized to offer you a regulated and secure environment for accessing cryptocurrencies and cryptocurrency-related products,” TD Markets has informed its clients in an official message seen by Finance Magnates.

“Strong Compliance Doesn’t Have to Stifle Innovation”: Bitget's Chief Legal Officer

Cryptocurrency exchange Bitget has ramped up its regulatory compliance efforts with the recent appointment of Hon Ng as its new Chief Legal Officer. Ng, who previously held a similar role at industry giant Binance, brings a wealth of experience in navigating the complex regulatory landscape of digital assets.

In an exclusive interview with Finance Magnates, Ng outlined his vision for enhancing crypto compliance strategies while fostering innovation in the rapidly evolving digital asset space. He emphasized the importance of balancing regulatory requirements with technological advancement.

Millionaires Say A Million Bucks Ain't Enough?

Once upon a time, a million dollars could make you the king or queen of the block, with enough left over to buy a yacht or three. Fast forward to 2024, and suddenly, a million dollars barely covers the basics. If you think that sounds crazy, you're not alone.

With the cost of everything from housing to avocado toast skyrocketing, a million-dollar fortune isn’t going as far as it used to. And with more millionaires sprouting up every year, the feeling of exclusivity is gone, too. It’s like showing up to a VIP party only to find out that they’ve invited the whole neighborhood.

Jamie Dimon Nears the Exit: JPMorgan's Top Dog Is Planning Ahead

Lastly, as Jamie Dimon plans his exit from JPMorgan Chase, he has warned of stagflation, leaving many wondering if the next CEO is prepared for the storm ahead. When you’re Jamie Dimon, the CEO of JPMorgan Chase over a 17-year tenure that has seen just about every twist and turn in the financial world, planning for your departure isn't about making a quiet exit through the back door.

JPMorgan CEO Jamie Dimon says succession is his most important task https://t.co/cv2562GPTG pic.twitter.com/38BRdMtPwG

— Reuters Business (@ReutersBiz) September 10, 2024

You might be looking to make a strategic masterstroke—or at least, that’s what Dimon hopes to achieve before he finally retires. But as he makes it clear that his most important job right now is figuring out who takes the reins next, there’s a lot more at stake than just picking a successor.