Exclusive: Finotec revenues bounce back in 2020 to £1.58 million
FNG Exclusive… FNG has learned via regulatory filings that FCA licensed institutional FX broker Finotec Trading UK Limited saw a healthy 41% increase in revenue to £1.58 million in 2020 (2019: £1.12 million). However, despite the robust year enjoyed by many in the Retail and Institutional FX space in 2020, Finotec revenues remained below 2018 levels, of £1.63 million.
The company posted a modest net profit of £314,000 million in 2020, up from £60,000 in 2019.
Finotec is a long-established financial service intermediary and investment management firm, operating an execution only trading platform and specializing in OTC and exchange-based trading venues. The company’s target market is that of Professional Traders, Asset Managers and Hedge Fund Operators. Its service consists primarily of the consolidation of multiple liquidity sources offered via API connections.
Finotec provides a diverse range of customized services to its clientele, as well as the tools and systems needed to set up and operate an FX Business. Since 2008, Finotec has operated a Match Principal business model, ensuring that its interests would always align with those of its clients’. This decision was based on the realisation that its own earning potential shared strong correlation to its clients’ Life-Time-Value; and in order to encourage a strong sentiment of success from its clients, it would need to match its clients’ orders with the market, thereby removing any possible conflict of interest. The company offers execution and clearing as well as ancillary technology and investment management solutions to Professional Traders and Brokers, Investors, Asset Manager and Hedge Fund Operators. Finotec does not onboard or service retail clients.
Finotec’s minimum entry to any of its investment programs remains at $100,000, with clients paying an Execution fee of $15 per million. The immediate consideration for Finotec is a monthly transaction volume of more than $US$1 billion for each $US1 Million AUM, which would generate an additional income of up te $15,000 (including price improvements) per month. Finotec’s target is to reach $US20 million in total deposits by the end of 2021.
Finotec is controlled by longtime Israel-based CEO Didier Essemini.
Finotec’s 2020 income statement follows: