Monex Europe profits drop by 24.4%
Monex Europe, a commercial Forex brokerage firm revealed to Finance Magnates that they’d had a 25.1% decrease in profit as of the end of 2018. This isn’t shocking considering the company operates in a niche market for deliverable commercial FXs. However, even though the company lost money this year, they still managed to have a solid year when in comparison to other financial firms in their market space.
The operating profit for Monex Europe during the year of 2019 was £14.69 million. However, by the end of 2018, that number had dropped down to £11.21 million, this alone is a 24.4% drop in profits for the Forex brokerage firm.
Group Net Trading for Monex Europe also saw a significant drop of 9.5%. During 2017 the overall trading for this firm was ranging around £68.3 million. That number has now dropped down to £61.8 million.
This isn’t the companies fault though, the industry as a whole has been affected and had lower results than expected for year-end profits. This is due to the European Securities and Markets Authority, the European Union regulator released product intervention measures and as such brokers across Europe have reported lower revenues.
The Managing Director at Monex Europe, Nick Edgeley, commented on the company’s year-end financial report by saying: “It’s been another big year for Monex Europe, generating pre-tax profits of £11.2m. Our concentration has been on expansion, with a doubling of our London office space. It’s been especially exciting to announce the opening of our new offices in Singapore and Luxembourg. This will allow us to increase our activities in some of the world’s most vibrant markets and provide a more comprehensive service to clients. We’re all looking forward to the year ahead.”
Brexit Uncertainty Continues into 2019 for Monex Europe
Countries across the European Union haven’t had to deal with the gripping regulation of the ESMA, but they’ve also had to deal with the upcoming promise of Brexit. Monex Europe, which currently has a headquarters located in London, is worried that Brexit will harm their investments and inevitably their profits as well. The pound itself could drop dramatically and hurt the economy in Britain.
Monex Europe by now having headquarters located in Luxembourg and Singapore can now uproot their company, traders and investors from London to another HQ if required. We could see this company leaving this hometown of London, England in the coming months.