FX week in review: Broker results – CMC, XTB, Dukascopy, FXOpen, Blackwell Global, Hirose
This week’s Forex Industry News at FNG was dominated by financial and operating results reported by a number of Retail FX and CFD brokers.
The “big picture” in the FX/CFDs industry that we’ve been reporting on the past few months seems to have been confirmed by the results – the past while has been a very good one for the Retail FX/CFD brokers, with (overall) record or near-record client trading volumes, new client signups, etc. However, it has been a very haves and have-nots type market, with some brokers hitting on all cylinders, while others seem to be struggling to both keep costs in check in a rising cost environment, while still generating good top-line results.
Some of the most read and commented-on FX industry news stories to appear over the past seven days on FNG included:
XTB continues strong 1H although Q2 Revenues down 10%, to $86M. Poland based online trading group XTB S.A. (WSE:XTB) continued its strong start to 2022 with another good quarter in Q2-2022, although activity and profitability slowed somewhat from XTB’s record Q1. The stock market seemed to welcome the news, with XTB shares trading up by about 3% in early trading Wednesday, at zł23.46 per share, setting a new 52-week high.
FXOpen Ltd posts £457K loss in 2021 following AMB acquisition. FNG has learned via regulatory filings that FCA regulated Retail FX and CFDs broker FXOpen Ltd posted a loss in 2021 of £456,913, although smaller than the £772,653 net loss the company saw in 2020. Revenues at FXOpen increased from £248,959 in 2020 to £611,705 in 2021. Client money held by the broker increased to £2.3 million in 2021, from £1.5 million as at year-end 2020.
Exclusive: Blackwell Global UK posts £1.2M loss in FY2022 as Revenues drop 50%. FNG Exclusive… Blackwell Global Investments (UK) Limited, the FCA licensed arm of Retail FX and CFDs broker Blackwell Global, has made regulatory filings indicating that the company saw a (further) decline in activity during fiscal 2022. Blackwell Global has a March 31 financial year-end. For the 12 months ended March 31, 2022, Blackwell Global UK saw Revenues drop by 50%, to £454,308, versus £904,381 in 2021.
Exclusive: Hirose UK sees Revenues down 50% in FY 2022. FNG Exclusive… FNG has learned that Hirose Financial UK Ltd has seen a 50% decline in Revenue in its Fiscal 2022 year, from £696,159 in 2021 to £348,627 in 2022. (The company has a March 31 fiscal year end, so the figures are for the 12 month period ended March 31, 2022). The company turned a modest profit in FY 2022, £59,039 versus £464,915 the previous year. Despite the decline in activity, Hirose UK saw client deposits rise during the year, from £1.03 million in 2021 to £2.0 million as at 31.3.2022.
Exclusive: Dukascopy sees 37% increase in Revenues to CHF 14.4M in 1H-2022. FNG Exclusive… FNG has learned from filings made in Switzerland that Geneva based Retail FX and CFDs brokerage group Dukascopy Bank SA showed a marked increase in activity, revenues and profitability during the first half of 2022. Revenues in 1H-2022 came in at CHF 14.4 million (USD $15.1 million) at Dukascopy, up by 37% over the second half of 2021’s CHF 10.6 million, and also much-improved over the first half of 2021’s CHF 11.4 million.
Top FX industry executive moves reported at FNG this week included:
❑ Exclusive: Kyriakos Paisanos leaves OvalX for Marketing Manager role at Vantage.
❑ Exclusive: OvalX operator Monecor adds risk expert Maria Turner to its Board.
❑ Exclusive: Stephen Villegas promoted to Head of Support at Centroid.
❑ Exclusive: Andy Ross leaves LSEG to head Prime Brokerage at StanChart.
❑ Exclusive: Simon Henry leaves Capital.com to head Compliance at Exinity.
❑ Tools for Brokers promotes Sergei Gruzin to head Asia Bus Dev.