The parent of the FXOpen trading brand, based in the United Kingdom, released its financials for the year ending on December 31, 2021. The firm’s revenue increased by a substantial amount. It earned £611,705 this year, compared to £294,807 last year.
Additionally, the cost of sales rose considerably, and the brokerage parent’s gross profit was £450,217. However, with an administrative cost of £853,713, which was lower than the previous year’s £943,018, the company incurred an operating loss of £403,496.
The total comprehensive loss for the year, including a £53,426 foreign exchange loss, was £456,913 instead of a £772,653 deficit. The brokerage arrow’s yearly loss dropped by almost 41 percent.
Earning from commissions and spreads
FXOpen is a global retail FX trading firm that provides currency pairs and contracts for differences (CFDs) on equities, indices, commodities, and other asset classes. Its primary source of income is the commission charged on transactions, which is directly linked to trading volumes on its platform.
Companies House records show that the year’s results and financial situation indicate difficult market circumstances. The group maintained its client base in [the] UK and other markets throughout 2021. Turnover increased as compared to 2020, reflecting a larger client base.
As part of its corporate strategy, the brokerage business has continued to grow its customer base in the UK and internationally. It’s also broadening its client base and welcoming professional and retail investors.
In July 2020, FXOpen secured its position in Europe after acquiring Cyprus-regulated broker AMB Prime. FXOpen EU is the company’s official name in the EU. It aims to expand the European marketplaces with its Cypriot entity by offering services to foreign investors.