£5 Million Loss for FXCM UK
Forex Capital Markets Limited, the contracts for difference and Forex broker published the 2018 financial results for the United Kingdom FXCM UK Office, indicating that they’ve had more than a £5 Million loss in revenue. The company’s yearend is on December 31st; in total, they lost £5,044,222.
This is a dramatic increase of loss compared to the £521,484 loss that occurred in 2017. This is an 867% increase in profit loss for the company, which has increased turnover rates. These losses can be attributed to the new laws implemented by the ESMA, which affected all brokers across the United Kingdom. However, FXCM is one of the largest brokers in the country and will surely bounce back in time.
Low consistency & ESMA Responsible
Throughout the whole of the European Union, there have been brokerages reporting lower revenues and profits since the European Securities and Markets Authority enacted new product intervention measures continent wide. These new measures created trends that caused lower trading volumes between broker and trader. Inevitably this caused lower currency opposition, which decreased profits for FXCM once again.
During 2017, the retail trade industry saw a trading volume of £1.672 Trillion; however, in 2018, the industry as a whole only earned £1.104 Trillion. This is a drop of 34% industry wide which is directly at fault of the ESMA.
The FXCM UK Financial Report Stated, “The company’s revenue and commercial rely on high levels of opposition, which in the FX markets is largely contingent upon the expectation of how much interest rates will change in the future. Low consistency is consistently a threat and a genuine possibility in the second half of 2019. Brexit, European elections and the US-China trade talks may short-term give rise to higher opposition, but stagnant G7 interest rate expectations will dampen hopes for lasting consistency.”
Looking Ahead to the Future
Forex Capital Market Limited is looking ahead to the future with plans to revitalize and grow their client base during 2019. Their main goals are to optimize revenue and strengthen its brand over the next several months. Increasing conversion rates of new clients will accomplish this. This will dramatically influence the growth of FXCM.