Axi’s UK business double revenue to £10.8 million
Axi’s FCA-regulated entity reported has reported its financials for the fiscal year ending June 30, 2021. The report showed impressive metrics after seeing revenues and customer activity double even as the pandemic trading boom fizzled out.
In the 12 months to June 30, AxiCorp Limited revenue was reported at £10.8 million, up 130 percent from £4.7 million in the same period a year ago.
Per its latest filing with the UK Companies House, Axi’s UK business reported the administrative expanses at £4.1 million, slightly down form £4.2 million the previous year. Over this period, however, the broker saw its cost of sales jump to £5.1 million in the fiscal year from only £21,291 in 2020.
In terms of its bottom line metrics, the firm’s operations, which barely broke even with £259K in 2020, yielded a net profit of £1.18 million.
The company attributes its upbeat performance to a growing customer base, which is beginning to increase again after the Covid-19 had a mixed impact on its onboarding levels throughout the year.
Axi joins no-fee trading craze
AxiTrader is a business name of AxiCorp Financial Services Pty Ltd which represents a group of companies regulated by the Financial Conduct Authority of the United Kingdom and the Australian Securities & Investment Commission.
The company has obtained A-category membership status with the Financial Commission (FinaCom) which means that its traders can be eligible for compensation of up to €20,000 per submitted claim and have access to all dispute resolution services offered by the commission.
Axi (formerly AxiTrader) was the latest company to join the race to the bottom. To stay competitive, the multi-regulated broker slashed its brokerage fees on stock CFDs to zero.
The news came as the company celebrates the first anniversary of its multi-year partnership with Manchester City Football Club.
Many firms are now using cheap or free trading to attract clients to more profitable businesses. For now, they can keep their free platform afloat through making compromises to some business aspects such as not spending on massive promotional campaigns.
Eight years after Robinhood launched with no-fee trading, almost all major brokerages have caught up with a wave of fee-eliminating announcements over the last two years.
The zero commissions, understandably, have driven massive increases in trading volumes and helped incumbent brokers capitalize on a new class of retail investors. But, despite an influx of dummies and a dramatic spike in trading volume, the move will ultimately prove painful, and the revenue give-up will not be easy in the long term.