FNG has learned via regulatory filings that Capital Index (UK) limited, an FCA regulated brokerage specializing in CFDs, Financial Spread Betting and Spread Trading, has posted financial results for 2020 indicating an 11% drop in Revenues as compared to 2019. The decrease in activity comes at a time when many of its London based competitors saw record activity, driven throughout the 2020 calendar year by heightened market volatility as the COVID-19 pandemic unfolded worldwide.
We believe that the company’s decrease in activity comes as much of the company’s business moved offshore, to the group’s Australia based entity ForexCFDs, and the Bahamas based Capital Index Global. That was also a phenomenon observed at other online trading firms, in the wake of the FCA’s lowering of leverage allowed to 30x implemented in August 2018.
Overall, 2020 Revenues came in at £2.44 million at Capital Index, down 11% from 2019’s £2.74 million. Net profit was marginal at £87,000, fairly similar to 2019’s £64,000.
Capital Index currently offers the MT4 online trading platform. However the company stated that it has plans to launch its own platform in Q3-2021, which it said will help to drive revenue and derive a new revenue stream for the company.
Capital Index is controlled by forex trading coach Greg Secker. The London based company has been run for the past three years by CEO Matthew Wright, former COO-EMEA at Gain Capital / FOREX.com.