ThinkMarkets UK’s 2023 Profit Dived 71%: Client Acquisition and Deposits Boosted

The British entity that operates ThinkMarkets, a forex and contracts for differences (CFDs) broker, ended 2023 with an annual turnover of over £2.4 million, a 14.2 percent decline from the previous year’s £2.8 million. The profits of the unit also dropped substantially, as the net figure sank by 71 percent to £82,925.

Significant Decline in Profits

According to the latest Companies House filing by TF Global Markets (UK) Limited, which is regulated by the UK’s Financial Conduct Authority, the company reported that its pre-tax profits halved to £151,668 from 2022’s £300,025.

“The company performed strongly across all key measures in 2023 despite lower business volumes due to industry conditions, general economic uncertainty, and global financial markets, supported by a continued focus on attracting and retaining high-value customers,” the filing added.

Headquartered in Australia, ThinkMarkets has a strong international presence. Apart from its FCA authorisation, the broker expanded its Asia Pacific presence last year by gaining a New Zealand licence, which followed its 2022 entry into Japan through the acquisition of a local FX firm.

The UK unit also established a locally regulated UAE branch and commenced its operations in the second quarter of 2024. “It is anticipated that this new segment of the company will increase both revenue and profitability, along with raising brand awareness by being present in the Middle East region under the DFSA licence,” the filing noted.

Income statement of TF Global Markets (UK) Limited

Client Metrics Improved

The latest filing further revealed that client acquisition under the UK unit increased by 246 percent during 2023, compared to a 42 percent decrease in 2022. According to the company, the rise in client acquisition was due to “continued investment in the group’s multifaceted marketing approach.”

Additionally, total client deposits grew by 68 percent last year compared to a decline of 22 percent in 2022.

“The company continues to invest in strategic markets to attract high-net-worth clients in tier-one markets, offering a broad range of products on its intuitive proprietary trading platforms,” the filing added.

Meanwhile, ThinkMarkets' efforts to go public were stalled by the cancellation of its deal with a blank-check company last year. The broker also failed to list its shares in Australia in 2020 through an initial public offering.