OANDA UK turns profit in 2020 as revenue shot up by 150%

abdelaziz Fathi

The UK arm of FX brokerage firm OANDA has unveiled its financial statement for the fiscal year ending December 31, 2020. The FCA-regulated firm’s latest report was characterized by positive metrics in areas ranging from operating income to revenues, underpinning its positive guidance for 2021.

Specifically, OANDA Europe Limited witnessed a strong increase in its operating revenues, which came in at £29.2 million. The company has almost tripled its revenue figure from £11.8 million reported back in the same period a year ago.

In terms of its operating income, the figure put together a strong year-over-year performance relative to 2019, having yielded a profit of £5.6 million compared to an aggregate loss of £3.5 million for the 12 months ending December 31, 2019.

The broker’s ultimate bottom-line figure, which factored out interest receivable and other income, also improved to a net profit of £4.5 million compared to a net loss of £3.6 million a year earlier.

Meanwhile, the strong growth in 2020 revenue was partially offset by a notable rise in operating expenses which totaled £23.2 million, up 50 percent from £15.2 million for 2019.

OANDA has been ratcheting up its preparation for Britain’s exit from the Europe Union. Earlier in 2020, the multi-regulated broker secured the regulatory approval for its new European subsidiary in Malta. Working under the brand ‘OANDA Europe Markets (OEM)’, the new entity is licensed by the Malta Financial Services Authority.

OANDA also acquired Polish broker Dom Maklerski TMS Brokers SA, aka TMS Brokers, to grow across the Baltic countries. Established in 1997, TMS is the oldest and second-largest local Polish brokerage and is regulated under the Polish Financial Supervision Authority (KNF), giving the business access to markets in the European Union.

At the time, OANDA signaled that it may close more of such deals, with the company stating that TMS is the first in a number of strategic acquisitions OANDA is looking to complete over the next couple of years.

Under Bambury’s leadership, the firm has undergone a transformative change in its operational configuration, widening its product offering and increasing its marketing investment in order to drive further growth.

OANDA is a multi-regulated broker with offices in Toronto, Europe and the Asia Pacific region. The ‎company operates an FX trading platform utilized by a mix of retail and institutional investors. ‎Moreover, it provides currency information services to individuals, large corporations and portfolio ‎managers.‎

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<