With the continuing events in Israel dominating global news headlines, let's take a look at the biggest news stories from the worlds of forex, fintech, and crypto in our best-of-the-week segment.
Q3 Performance of Plus500: Revenue Jumps 5% QoQ despite Yearly Fall
Plus500, listed as LON: PLUS, reported its Q3 financials with a 5% increase in revenue compared to the previous quarter, totaling $168.1 million. However, the year-over-year revenue fell by 14%. The company's EBITDA improved by 10% from the previous quarter but declined by 21% compared to the same period last year, resulting in an EBITDA margin of 48%.
Plus500 CEO David Zruia credited the performance to strategic plans, including expansion into new markets. Customer metrics revealed a drop in new customers and active customers but an increase in customer income. Despite the challenges, Plus500 remains on track to meet market expectations for FY 2023 with projected revenue of $645 million and EBITDA of $300 million.
Explore further details on Plus500's performance as its revenue jumps 5% even with an annual decrease.
XTB's Q3 Revenue Down 29% on Declining Market Volatility
XTB released its Q3 financial results, indicating a 29.5% YoY decline in consolidated revenue, primarily due to decreased market volatility. However, the firm saw a significant increase in active clients, up by 47.1% YoY. Commodity-based CFDs played a major role in revenue, followed by CFDs tied to indices and currency pairs.
XTB has been expanding its product offerings and recently introduced passive investment products and fractional share trading. The company's client base has grown by 60% since the previous year, totaling over 826,000 customers worldwide.
Discover more about the XTB's revenue deflating 29% as of a slump in market volatility.
“Volatility Rise Made Carry Trades Less Attractive”: Should Japanese FX Brokers Worry?
The Japanese margin forex trading market has seen remarkable growth, with the total annual FX trading volume surpassing JPY 12 quadrillion ($81.5 trillion) in 2022, driven by market volatility and low transaction costs. However, challenges may be on the horizon as rising volatility affects the attractiveness of carry trades.
Japanese traders have shifted towards short-term intraday trading, while retail participation has surged to 10.54 million traders in 2022. The market's stability is attributed to investor protection regulations and active advertising efforts by brokers. Although the market is high demand, new brokers face tight competition and regulatory hurdles to establish themselves.
Investigate more about the Japanese margin FX trading market and whether Japanese FX brokers should worry.
Hidden Road Unveils Route28: A New Frontier in Synthetic Prime Brokerage Offering
Hidden Road, a global credit network, introduced Route28, a Synthetic Prime Brokerage solution for OTC Swaps. This comprehensive product covers various asset classes, including FX, equities, commodities, digital assets, energy, and rates. It will be available through the UK-based unit regulated by the Financial Conduct Authority.
Hidden Road aims to enhance credit intermediation services and has partnered with Crossover Markets for its technology. Several major financial firms have already adopted Route28, demonstrating its potential in the prime brokerage market.
Uncover more about Hidden Road's new synthetic prime brokerage solution for OTC swaps: Route:28.
CySEC Reverses Course: Alvexo's FX/CFD License No Longer Suspended
Cyprus Securities and Exchange Commission (CySEC) revoked the suspension of the authorization of Cyprus Investment Firm (CIF) VPR Safe Financial Group Ltd, the operator of Alvexo. The suspension occurred due to alleged violations of licensing rules, preventing the company from offering its services in France. CySEC cited compliance with regulatory requirements as the reason for reversing its decision, and Alvexo is now free to resume its operations.
Learn more about CySEC changing its direction on Alvexo's FX/CFD Licence.
Crypto Marketers Face New Hurdles as FCA Tightens Rules
The UK's Financial Conduct Authority (FCA) highlighted common issues in crypto asset promotions since implementing new regulations. Promotions often emphasize the benefits of crypto without addressing associated risks, risk warnings are often obscured, and firms provide insufficient information about product-specific risks.
The FCA is actively monitoring and collaborating with platforms to remove illegal promotions. The FCA has issued alerts and restrictions to non-compliant firms. The new rules require authorization or approval for crypto asset promotions and emphasize transparency and risk mitigation.
Read more about how crypto marketers in the UK are adapting to fresh challenges amid the FCA's tightening regulatory stance.
CySEC Prolongs FTX License Suspension until March 2024
CySEC extended the suspension of FTX EU Ltd's authorization until March 2024 due to market instability caused by the company's Chapter 11 bankruptcy filings. During the suspension, FTX can execute transactions initiated by clients but cannot provide investment services, enter into business transactions, accept new clients, or advertise itself as a provider of investment services. FTX must return funds attributable to its clients, ensuring their assets are safeguarded.
Gain insights into CySEC extending its suspension of FTX's license until March 2024.
Revolut Takes On European Stock Market with Zero Fees
Revolut introduced fractional trading of over 70 European-listed companies in the European Economic Area with a minimum investment of 1 EUR. Users can diversify their portfolios with popular European stocks, and the commission structure depends on the chosen plan. Revolut also introduced recurring buys for scheduling purchases. Despite regulatory challenges, Revolut expands its offerings and remains a prominent fintech platform.
Delve into the specifics of Revolut challenging the European stock market by offering commission-free trading.
