FX week in review: Broker results – eToro Revenues down 50%, Pepperstone and iS Prime grow
This past week saw a plethora of 2022 results releases from some of the more known names in the FX and CFDs world, including eToro, iS Prime, and Pepperstone UK. With some very different outcomes at the different companies reporting.
There were also a couple of key announcements in the institutional crypto trading world, including the launch of CrossX, led by the former heads of FXCM’s Prime Brokerage business and backed financially by a number of leading Retail FX and CFD brokers.
And, of course, a number of senior executive moves, all reported first or exclusively here at FNG.
Some of the most read and commented-on FX industry news stories to appear over the past seven days on FNG included:
eToro Revenues down nearly 50% in 2022, raises $250M. Israel-based Retail FX and CFDs broker eToro released a summary of its 2022 financial results, indicating that Revenues (what it calls Total Commissions) were down by nearly 50%, from more than $1.2 billion in 2021 to $631 million last year. The company – which was planning to bring in several hundred million dollars in new capital in a failed SPAC going-public transaction last year – also said that it has raised $250 million, at a valuation well below its planned IPO valuation. No indication was given regarding profits or losses in 2022 – in 2021, the company lost $265 million. Who put new money into eToro? And at what valuation?
Crossover Markets launches institutional crypto ECN CrossX backed by Exness, GMO. Reported First at FNG… Newly-formed institutional crypto platform Crossover Markets has left stealth mode and gone live. Crossover, started by former FXCM/Jefferies prime brokerage heads Brandon Mulvihill and Anthony Mazzarese as was exclusively reported here at FNG last year, describes itself as a digital asset trading technology firm focused on meeting the unique liquidity requirements of institutions in the spot and derivative cryptocurrency markets. The company announced today the launch of CROSSx, its execution-only cryptocurrency Electronic Communication Network (ECN).
iS Prime reports 15% increase in 2022 Revenues to £35 million. Prime-of-Prime institutional broker iS Prime, part of iSAM Securities, has submitted its 2022 financial results (fiscal year-end of June 30, 2022), indicating Revenues of £35 million and pre-tax profits of £16.2 million. Last year’s accounts for the London-headquartered, FCA regulated firm reported on a 15 month period, in which iS Prime brought in Revenues of £37.9 million, so some quick math shows that Revenues grew about 15% year-over-year. iS Prime’s 2021 pre-tax profit was £10 million (again over a 15-month period), so profitability increased nicely as well in 2022.
Exclusive: Pepperstone UK Revenues up 36% in 2022 to £10.7M. FNG Exclusive… FNG has learned that Pepperstone Limited, the London based, FCA licensed arm of Australia based Retail FX and CFDs broker Pepperstone, saw a nice increase in activity in 2022 leading to a 36% increase in Revenues from £7.9 million in 2021 to £10.7 million (USD $13.1 million) last year. Pepperstone has a June 30 fiscal year end. On the bottom line Pepperstone UK saw profits more than double from £1.6 million in 2021 to £3.8 million (USD $4.6 million) in 2022.
Top FX industry executive moves reported at FNG this week included:
❑ Exclusive: Tixee exec Todor Georgiev joins FXGlobe as COO.
❑ Exclusive: TrioMarkets hires Natasha Kassar as CEO MENA.
❑ FlexTrade hires Rajiv Shah as Head of Sales EMEA for FlexOMS.
❑ Ally Financial appoints Russell Hutchinson as CFO.
❑ PayPoint appoints Guy Parsons to Board of Directors.