UK, the FCA regulated branch of the well known broker, has reported hopeful financial results for 2013 with trading volume increasing threefold compared to prior year while net loss is down 35% YoY.
If you are surprised that FXPro UK is reporting loss that is because it is a start up company and should not be confused with the long operating Cyprus based FxPro Financial Services Limited. Hence, according to the official FXPro UK annual report submitted to the UK Companies House trading losses [are] sustained [in 2013] since the company is in start-up phase.
The company also is rather small with monthly average number of FxPro UK employees in 2013 of only 11. This simply means that the company is supported by personnel in the Cyprus branch keeping only essential positions in UK. Several senior employees must be located in UK in order to fulfill the regulatory requirements of the FCA.
By all means the company is progressing as evidenced from the major financial metrics in the report. The following figures are in comparison with the previous year (2012) financial results.
- Revenue £945 161 from £789 940 (20% increase);
- Net loss £465 965 from £713 754 (down 35%);
- Traded volume $49 billion from $16 billion (up 200%);
- Administrative expenses £1.422 million from £1.422 million
Notably, although the trading volume is up threefold the net revenue increase is only 20% meaning that FXPro UK is earning approx. $3 per standard lot traded (down from c.a $10 in 2012). In other words, the profit in 2013 is 0.3 pips per lot compared to 1 pips per lot in 2012. For comparison Gain Capital's profit per traded lot in 2013 is $10.95 or approx. 1.1 pips.
All in all, the reported figures are reassuring. Hence “the board of directors does not expect any significant changes or developments in the operations, financial position or performance of the company in the foreseeable future.”