Following our report from Friday that Retail FX and CFDs broker iForex had filed documentation for an initial public offering in London – becoming the second “live” industry IPO alongside eToro which is now on its IPO roadshow – FNG has had the opportunity to review the company’s registration document and financial results, which provide some interesting insight into iForex and how it has been doing.

iForex financial results

iForex has chosen an interesting time to try to go public, as its Revenues have declined by 35% over the past two years, and its Profits by even more.

In 2024 iForex reported Revenues of $50.1 million, and Net Profit of $4.6 million. Those figures are fairly close to iForex’s 2023 results (Revenues: $49.7 million, Profit: $7.3 million), but down significantly from Revenues of $76.8 million and Net Profit of $25.8 million in 2022.

Trading in currencies accounted for approximately 37% of iForex’s total number of transactions in 2024. Commodities and indices accounted for 52%, while trading in stocks, ETFs and cryptocurrencies accounting for the remainder.

Total client trading volumes at iForex totaled $407 billion in 2024, or just under $34 billion in average monthly trading volumes.

iForex structure

iForex was established in 1996 by controlling shareholder Eyal Carmon, and is run (mainly) from Israel led by CEO Itai Sadeh.

The group offers services to clients via two key subsidiaries, CySEC licensed iCFD Ltd in Cyprus (which operates the website iforex.eu) and offshore British Virgin Islands (BVI) unit Formula Investment House Ltd, which runs the main iforex.com website.

iForex’s offshore BVI unit accounts for more than 95% of overall group Revenues.

The Company noted in its filing that it will evaluate new license applications based on the commercial opportunity. These include Australia, Malaysia, New Zealand, the Philippines, Chile, the UAE and the United Kingdom.

iForex client base

For the year ended 31 December 2024, the Group had 28,863 Active Clients, with an ARPU of USD 1,737. This compares to 29,467 Active Clients in the year ended 31 December 2023 with an ARPU of USD 1,685. The Group also managed to bring 13,632 New Clients onto the Trading Platform in the year ended 31 December 2024 at a CAC of USD 401 per client. This compares to 13,430 New Clients at a CAC of USD 418 per New Client in the year ended 31 December 2023.

The Group has an internationally diversified revenue model with clients registered from more than 30 countries. iForex’s key geographic regions are as follows:

East Asia: East Asia is the iForex Group’s largest geographical market by revenue, representing USD 19.6 million or 39% of revenue in the year ended 31 December 2024. The Group considers East Asia, notably Japan (35.3% of trading income), to be its core market.

MENA: The Group’s operations in the Middle East and Africa region represented USD 15.1 million or 30.3% of trading income in the year ended 31 December 2024. As this region’s increasing population, especially in developing Gulf Cooperation Council countries, becomes more exposed to financial trading, the Group is seeing increased demand for its services and is planning to apply for a license in the UAE.

South Asia: The South Asia region contributed USD 8.4 million or 16.7% of trading income in the year ended 31 December 2024, with India being the most prominent country. At this time, India does not have a legal framework that facilitates the trading of CFDs by investment firms onshore.

Latin America: Clients within Latin America account for USD 4.4 million or 8.8% of trading income in the year ended 31 December 2024.

Europe: The Group accepts clients from EEA member states (with the exception of Cyprus and Belgium) through iCFD’s CySEC license and passporting rights granted to iCFD. Clients from European countries that are not members of the EEA (for example, Switzerland), are onboarded through FIH. Revenue from clients in Europe represent USD 2.6 million or 5.2% of trading income in the year ended 31 December 2024. The Group believes that in a highly competitive and evolved market such as Europe, which is also highly regulated, size and reliability plays a pivotal role in the ability to succeed in the market and therefore the Group intends to invest considerably in brand awareness which will assist in the growth of the Group’s European operations.

iForex financial statements 2024

The iForex group’s consolidated income statement and balance sheet for the years 2022 to 2024 follow below.