FXCM UK Ltd. reported an 11.2% revenue drop to $10.74 million in 2022. However, its profits experienced substantial growth.
Given the challenging conditions of the global forex market, consisting of tight regulatory oversight, geopolitical tensions, and market volatility, several trading industries will be affected in their operational performance, including FXCM UK.
The multi-asset broker has published its financial results ending December 31, 2022, and reported a drop of 11.2% in annual revenue, reaching $10.74 million. Even so, its profit performance grew bigger compared to the previous year.
Based on Companies House filings, the fintech company earned pre-tax profits of $759,159 from ordinary activities in 2022, hitting a jump of 168.1%.
Following this, net profitability rocketed by approximately 277.5%, from $227,982 to $860,552. The broker also highlighted that although trading volumes trended marginally by around 3.2% to $482 billion within the timeline, FXCM UK Traders holding cash on the platform experienced a slight decline of 3.3% ($142.1 million).
Subsequently, although annual profits increased, the pre-tax and net profit figures remained significantly lower, at $5.26 million and $4.86 million, respectively. The UK company reached this point as annual turnover stood at $15.46 million. Moreover, FXCM UK had to suspend the EU services. Brexit contributed to a dramatic decline in services provided under other EU affiliates for European traders.
"In the foreign exchange market, the volatility depends partly on expectations regarding how much interest rates will change. As the company's business model is countercyclical, increased market volatility has benefits not only sales and profitability but also FX and CFD trading," commented Companies House.