Capital Markets Elite Group UK branch faces a net loss of £892,630 despite a revenue surge, raising concerns in the brokerage sector.

Capital Markets

Capital Markets Elite Group UK forex broker published their financial results for the fiscal year from 1st May to 31st May 2023, in which the company recorded a colossal increase in the annual turnover to £449,772. Though, during this time, this multi-asset broker might have seen an uptick in their revenue, they made substantial losses during this period.

Capital Markets forex broker's profitability has reached £138,408 following the deductions of a £311,364 cost of sales. Even though administrative expenses rose to £1.03 million for the year under review compared to last year's £560,534, there was an operating loss of £895,807 at the end of the year.

Such a trend was much higher than a year ago when the company had lost £495,991. Conclusively, the net loss for UK operations at the end of the year was £892,630, rising by almost two times from the previous year, which created doubts about the company's financial health in that region.

However, this non-dealing desk broker is determined to remain within its current authorizations, notwithstanding these adverse circumstances.

This zero-commission broker's latest filing indicates a commitment towards offering brokerage and execution services for equities and derivative products, mainly for UK and European retail customers. Despite this, there are still uncertainties regarding whether the company complies with the European Union's licensing requirements.

Furthermore, the review showed that the UK branch opened 1000 new accounts in the previous financial year, and about 50% graduated from the holdings stage. Nevertheless, retail investors constitute the majority of its clientele, so to survive and thrive during outstanding financial difficulties, the market maker needs help navigating brokering competition.

Read our forex broker news for more details on Capital Markets Elite Group.

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