ATFX revenue rises 35% in 2020, but loss nearly doubles

abdelaziz Fathi

AT Global Markets (UK), the FCA-regulated arm of financial services group ATFX, has released its financial results for the full year ending October 31, 2020, which featured mixed performance across a number of key metrics, ranging from profit to revenues.

Per a regulatory filing with the UK Companies House, ATFX UK saw its operating revenue grow to £3.0 million in FY 2020, up from £2.23 million a year ago, or 35 percent higher year-over-year.

Despite revealing a significant increase in turnover for the period, the broker is still closing out the year at a loss. Specifically, the firm reported a net loss of £766,416 for 2020, nearly doubled when compared to a net loss of £383,861 in the previous year.

The primary culprit for the downbeat performance of ATFX’s bottom-line metrics might have been the higher operational expenses, which is a market-wide phenomenon due to changes in regulations and market conditions.

Over the previous fiscal year, ATFX UK reported a 54 percent increase in its administrative expenses, climbing to £3.18 million in 2020 from £2.06 million a year ago. The company attributed this substantial rise to investing in “enhancing marketing channels, expansion and development.”

“The overall result for the company is neutral. The directors of the company will continue to adjust the strategy to face the ongoing pandemic, the fallout of Brexit and continued changing regulatory landscape,” ATFX said.

Other business highlights show that the company issued £4.65 million worth of shares during the year. The capital injection helped ATFX UK’s net assets nearly triple to £6.3 million from £2.4 million reported back in 2019. This figure included £5.7 million in cash balances.

ATFX UK also said its trading volumes increased “significantly” in the early part of 2020 and expanded activities during the year, supported by the development of its institutional brand, ATFX Connect.

ESMA’s restrictions have already had a more severe impact than most CFDs brokers anticipated. For instance, the European regulator has banned any welcome bonuses or other incentives that encourage clients, prospective or existing, to trade CFDs or to trade larger contracts. This was problematic for many firms who often rely on such bonuses as a means of attracting clients.

ATFX, however, has recently entered into a new phase of growth, which saw the broker expand its geographical footprint across Asia, as well as enhance its product offering, focusing on localization.

 

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<