FXCM UK Revenues Fall 12% Profits Will Drop By 95% In 2021

WikiFX has revealed via regulatory documents that Forex Capital Markets Limited, the FCA-regulated UK subsidiary of major Retail FX broker FXCM, suffered a minor 12% decline in Revenues in 2021, but remained profitable for the year.

FXCM UK's revenue for 2021 was $13.6 million, down 12% from $15.4 million in 2020. The company's net profit for the year dropped from $4.9 million in 2020 to barely beyond breakeven in 2021, at $227,982.

Customer cash held fell from $174 million at year-end 2020 to $147 million in 2021, owing mostly to client migration to affiliates throughout the year. The UK legally exited the EU on January 31, 2020, and entered the transition period, which concluded on December 31, 2020. In 2021, the firm was no longer permitted to serve EU customers directly, and they were urged to transfer to an FXCM Group EU subsidiary.

Retail trading volumes at FXCM UK fell by 22% year on year in 2021 due to increased volatility in 2020, averaging $40 billion monthly (2020: $50 billion).

FXCM UK provides online FX and CFD trading to retail and professional customers via the online trading platforms of connected organizations. All of the company's FX and CFD transactions are offset with affiliate businesses, and it is reimbursed on a commission basis for selling this risk. In this function, the corporation acts as a referral broker to these entities and is the primary counterparty to the client transaction. The company's profit or loss is determined by the trading volume of its customers.

In 2021, the corporation restructured its London and European operations. The process of closing the European offices continues into early 2022 and is not yet complete as of the date of compilation of the financial statements. These restructuring charges have been expensed in these financial statements for $2.1 million.

FXCM Overview

FXCM is a market-making broker with a lengthy history in the market, having been formed in New York in 1999. The renowned broker today has headquarters in London, UK, and is regulated by the country's Financial Conduct Authority (FCA), as well as several other stringent regulatory bodies throughout the globe, notably in Australia (ASIC) and South Africa (FSCA).

FXCM provides traders with a range of accounts, forex and CFD instruments (commodities, crypto, and more), leverage, and a genuinely astounding selection of plugins and supporting apps. Furthermore, FXCM is distinguished by its greater trading platform variety, which includes its own Trading Station, MetaTrader 4, the copy-trading platform ZuluTrade, NinjaTrader, and other add-on plugins available to traders through the FXCM website. With cheap trading costs and conditions, as well as an industry-leading degree of freedom for traders, FXCM is an appealing alternative for regular traders with nearly any technique preference.

Check out more of FXCM: https://www.wikifx.com/en/dealer/0001698019.html

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