True ECN/STP retail forex broker, FXOpen has published its financial results for the fiscal year ending on 31st Dec 2018. The group has posted a significant drop in revenue and overall loss in the year weighed down by strict ESMA regulations and challenging market condition.
For the full year period ending on Dec 31st 2018, the broker posted a turnover of £351,481 which is a massive drop of over 70 per cent drop from the previous year, which had a turnover of £1.39 million.
Breaking down the revenue, the broker generated a turnover of £162,381 from the EC Commission which is slightly lower from £213,371 in 2017. The non-EC Commission revenue for 2018 came in at £189,100, which is 83.9 per cent down from the £1.17 million achieved in the previous year.
One positive factor in the report was the lower cost of sales in 2018, coming in at £137,941 compared to £439,803 in 2017. The gross profit came down by over 77.5 per cent year-on-year to reach £213,540 from £949,310 in 2017.
Overall, the weak operational performance resulted in the company posting a loss of £347,992 in 2018, which is in contrast to £391,545 in profit achieved in the previous year.
The report mentions:
“The results for the year and the financial position at the year end represent tough market conditions. During the course of 2018, the company maintained its client base in European and non-European market.
“Turnover decreased substantially in mid-2018 and in total, as compared to 2017, reflecting the new margin rules applicable to the retail clients, introduced by the European Securities and Markets Authority (ESMA). The board is focused on expanding its client base, professional and retail.”
FXOpen is an FCA regulated FX broker, launched its services in 2005 and was formed by a group of traders. It is the first FX broker to offer micro accounts and swap free sharia-compliant accounts.