de | cn | ru

Brokers News

Alapri UK Reports $10 Million Loss in 2013

Apr 29 2014
By
Forexbrokerz.com

Yesterday Alpari UK has filed its financial statement for 2013 with Company House in the United Kingdom. According to it the company has lost about $10 million due to the low market volatility. A few things that caught my attention:

 
 
1. Alpari has more accounts than all forex brokers' subsidiaries operating on US market combined. 
 
2. Accounts number grows (138 831 in 2013 vs. 116 320 in 2012), but client funds stand unchanged at 100 000 000 GBP. The average account size has dropped to 720 GBP. 
 
3. Trading volumes are 68% up YoY, however Alpari's revenues stand unchanged. The broker makes less than 1 pip ($10) per standard lot traded. It seems that Alpari's hybrid dealing model needs significant improvement.
 
Below is Alpari's official strategic report. The complete statement is available on companieshouse.gov.uk
 
The year 2013 matched the previous year as an extremely challenging one for the whole industry with consistently low levels of volatility. Continuing uncertainty in the global economic recovery and the lack of significant news to drive markets impacted the trading behaviour of existing and new clients. Against this backdrop, Alpari (UK) compared favourably achieving trading volumes of $1,161 billion in 2013, a year on year increase of 68% (2012: $692 billion).

The loss before taxation was GBP 6,029,773 (2012: loss GBP 10,611,573). Before exceptional items the loss is GBP 4,044,527. In comparison to 2012, there was a decrease in income of 1% and a decrease in income of 12%. The main reductions were seen in broker rebates and marketing. The exceptional cost was in relation to the write down of the investment in Alpari Financial Services (India) Pvt. Limited. It was decided to lose the operations in India due to a downward trend in the income generated from this region.


2013 saw continued efforts in implementing the strategy developed in Q3 of 2012.

(i) Growing revenue through the implementation of a new trading model;
(ii) Improving profitability;
(iii) Improvements to product offer and client experienced

(i) Growing Revenue

During the year, the company continued operating a hybrid model, Whilst the business saw a substantial increase in trading volumes, this did not translate into an improvement in income as a large proportion of the volumes being derived were from low margin clients. 

The company optimised its acquisition model during the year via the introduction of a global distribution web portal model with multi language variants and enhancements to the application form procedure so enabling greater client recruitment capability. 

The company also announced a three year deal to become the main shirt sponsor of English Premier League (EPL) side, West Ham United FC. Through TV rights, the global audience reach of the EPL is 710 million households which provides a very cost efficient platform to generate awareness on the global stage, adds stature to the brand and facilitates greater levels of client recruitment. 

(ii) Improving profitability

In comparison to 2012, there was been a reduction in loss of 61% before the write down of the investment in India and tax. This is a significant change driven mainly by the reduction in costs in marketing (21% reduction), rebates (11% reduction). 

The strategy to in-house and centralise marketing operations has proven successful in reducing the operational costs of marketing whilst still ensuring good levels of investment could be deployed across the key media channels to attract future clients. 

(iii) Improvements in product offer and client experience

Our focus remains on offering a diverse range of products and bringing new initiatives to enhance our client trading experience. 

Our client management tool which was rolled out at the end of November 2012 was continually improved during 2013. One of the main enhancements enabled clients to fund in real time. The client management tool was rolled out in additional languages to allow a wider reach. It was fully translated into German, Chinese and Spanish. 

The business also launched an Expert Advisor (EA) builder, which enabled all clients to design, create and use their own EAs through user-friendly, graphical software. 

Throughout 2013 we continued to modify our Electronic Communication Network (ECN) which we launched in June 2012. This provides improved execution and available liquidity to clients of our MT4 platform. 

Future Developments

2013 has been another challenging year for the business. Management changes seen at the end of 2013 and beginning of 2014 has seen a new strategy being developed for 2014 which is now being executed by the management team.

Key performance indicators (KPIs)

Management use the following KPIs to monitor the performance of the Company:
 
 
TAGS: alpari uk  financial statement  loss 

More news about Alpari

Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website
UK, Cyprus, Dubai FCA, CySEC, DFSA MT4, MT5, Web,
PrimeTrader
$100 Review Website

More Forex Brokers News

FXTM Launches 30% Welcome Bonus

Aug 06 2019 13:38:53

  As part of FXTM’s mission to provide clients with an exceptional trading experience, the international broker has launched its latest offering – the 30% Welcome Bonus!   This promotion, available under Exinity Limited, boosts your account by an extra 30% when you deposit $100... Read more

XM parent actively prepares for the launch of its US brand Trading.com

Jul 03 2019 14:19:28

  Trading Point Group, the owner and operator of the XM brand, actively prepares for the future launch of its US brand Trading.com. Read more

FBS Invites 20 Best Partners To a VIP Party

Jul 02 2019 15:04:24

Partner parties is a great way to get to know company’s local promoters and celebrate loyalty, motivation, and cooperation. In 2019, FBS broker launches the FBS Stars contest with a round trip flight to Russia’s second largest city and a VIP party invitation as a prize. Read more

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

  Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

  Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD  in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

  Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

de | cn | ru