Breaking: Capital.com pauses onboarding UK clients

Prospective clients attempting to sign up on the platform are met with a message stating the company’s decision to pause new client registrations in the UK for the time being.

The message provided to those trying to sign up is clear: “We have made the decision to pause onboarding new clients in the UK for now. We have grown rapidly as a business and we want to make sure that all our systems, controls, products and services are provided to the high standards that are demanded by our clients, management, shareholder and regulators.”

As of now, Capital.com has not provided a specific timeline for when it will resume accepting new clients from the UK. Existing clients of the brokerage are not affected by this decision and can continue to use its services as usual.

“We expect to start onboarding new clients again in the UK in due course”

FinanceFeeds contacted Capital.com for a comment. In response, a spokesperson stated: “Capital.com has made the strategic decision to temporarily pause new client onboarding in the UK. This is to ensure we continue to deliver an uncompromised level of service to our existing clients in the UK as we experience rapid and unprecedented growth in new and emerging markets.

“This temporary pause will allow us to ensure all our systems, controls, products and services meet the stringent standards demanded by our valued clients, management, shareholders, and regulators. This is a proactive measure that aligns with our long-term vision of delivering sustainable growth and operational excellence.

“During this time, people resident in the UK who are not existing clients will not be able to open a new account with Capital Com UK Limited. All existing UK clients with an active account will not be affected and can continue to deposit or withdraw funds, add additional sub-accounts, and trade as normal. Capital.com continues to operate a full service in all other markets. We remain committed to supporting our clients and expect to start onboarding new clients again in the UK in due course.”

Per its most recent reports, the UK business of Capital.com saw its operating revenue double to £29.1 million in FY 2022, up from £15.4 million a year ago.

In terms of its bottom line, the firm reported its net profit at a figure of £4.1 million for 2022, higher than £1.85 million in the previous year.

Capital.com UK said it generates revenue primarily from rebates received from its parent company by serving as a matched principal broker in the CFDs and spread betting markets. This revenue stream includes a monthly service charge billed to the company’s parent, covering a portion of its operational expenses that are allocated to CCSV. The net revenue is calculated by deducting rebates paid to other affiliated companies for hedging activities.

Capital.com is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). In the past two years, Capital.com has made a number of senior hires as it continues to grow and expand its global reach. The company appointed in 2023 Kypros Zoumidou as its new Group CEO, replacing the former CEO Peter Hetherington as part of its long-term CEO succession plan.