FNG Exclusive… FNG has learned via regulatory filings that FCA licensed Retail FX broker operator Trading Point of Financial Instruments UK Limited has seen a similar year to 2021 in 2022, with Revenues fairly flat and a similar Net Loss for the year.

Revenues for Trading Point UK totaled £1.054 million in 2022 (2021: £705K). The company posted a Net Loss of £1.091 million in 2022, similar to the £1.166 million the company lost last year. 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 £1,372,461 (2021: £2,464,244) and this was due to the losses incurred during the year. The decrease in the Net Asset position, was mainly evident in the cash and cash equivalents reserves of the Company which decreased to £1,478,331 (2021: £2,559,297). The available cash reserves still indicate the Company’s ability to cover its obligations as they fall due. Management remains vigilant on the cash position of the Company on a regular basis to ensure that it has the liquidity to operate.

Trading Point UK’s 2022 income statement and balance sheet follow: