FNG Exclusive… FNG has learned that Geneva, Switzerland based Retail FX and CFDs broker Dukascopy saw a severe drop-off in activity during the second half of 2020, after what was a stellar first half of the year.
Like many Retail FX shops, Dukascopy saw a spike in client trading – and resulting revenues and profitability – at the outset of the COVID-19 pandemic in late Q1 and into early Q2. But in the second half of the year the momentum dried up, and revenues were back at roughly pre-pandemic levels while the company turned from a CHF 12.5 million profit in 1H-2020 to a CHF 2.1 million loss over the last six months of the year.
Revenues at Dukascopy came in at CHF 14.2 million in the second half of 2020, down 44% from a company record CHF 25.4 million in 1H-2020.
Client deposits at Dukascopy were up slightly as at year-end 2020 over 2019, CHF 105.3 million versus CHF 102.1 million.
Dukascopy is the second largest Retail FX firm based in Switzerland after Swissquote, which saw a much milder (3%) drop in revenue over the same period, and remained very profitable.
Dukascopy’s 2020 income statement and balance sheet follow: