FNG Exclusive… FNG has learned via regulatory filings that FCA licensed Retail FX broker operator Trading Point of Financial Instruments UK Limited has seen (another) steep decline in Revenues in 2021, posting a larger loss for the year.

Revenues for Trading Point UK totaled £705,077 in 2021, down 56% from £1.6 million the previous year. The company posted a loss of £1.17 million in 2021, versus a loss of £0.1 million in 2020. As recently as 2017 Trading Point UK was doing more than £3.4 million in annual revenue.

Trading Point of Financial Instruments UK Limited is the UK arm of Cyprus based and CySEC-licensed Trading Point of Financial Instruments Ltd. In 2019 the company rebranded its trading name and website in the UK from “XM.com” to “trading.com”. The group now operates the XM.com brand out of the Cyprus operation as well as offshore via XM Global Limited in Belize. (There are also licensed subsidiaries in Australia and Dubai).

The principal activities of the company comprise the provision of online trading delivered through the company’s trading platform. Trading Point UK enables retail customers to trade global over-the-counter CFDs (Contracts for Difference) on currency pairs, equities, indices and commodities markets. The company acts as the counterparty to all trades entered into by its clients. The company receives commission income from its related group entity Trading Point of Financial Instruments Ltd (in Cyprus) based on the total trading volume of all its clients’ trading activity.

The company’s Net Asset position fell to £2,464,244 (2020: £3,630,148) and this was due to the losses incurred during the year. In addition, cash and cash equivalents amounted to £2,559,297 (2020: £3,721,817) indicating its ability to cover its obligations as they fall due. Management reviews the cash position of the company on a regular basis to ensure that it has the liquidity to operate without any external financial support.

Trading Point UK’s 2021 income statement and balance sheet follow: