Leaprate informs us about the FCA regulated broker ETX Capital and its loss of £2.7 million in 2016, which was followed by the departure of its CEO, Andrew Edwards, and appointment of Arman Tahmassebi in the company’s management. In fact, ETX Capital profit of £264,000 for 2017 was not very welcoming.
Increases and Decreases in the Revenues of ETX Capital
Monecor (London) Limited, which is ETX Capital parent company, announced the results, which showed a revenue downward with 8.5% from 2016, earning £31.3 million versus £34.3 million. The decrease was conditioned by the changes in strategy, involving critical expending cuts and the focus on high net worth clients.
Unlike the downfall in revenues, the company earned up to £129.6 million in client assets held at the end of 2017, compared with the profit of £58.4 million at the beginning of the year.
ETX Capital Forex Broker also changed the structure of arrangements with non regulated introducers, so they will not be receiving tail payments anymore.
As for another downward in the company, the main focus on higher net worth clients conditioned the decrease of 29% in the number of active customers in 2017. However, spread-per-customer rose by 24% and from total revenue in 2017, spread revenue held 67%, a little bit down from the results of 2016.
Since the customers belong to different categories, ETX Capital shows the increase of 28% in professional customers, earning £11.1 million in 2017, higher than £8.7 million in 2016.
The results of CFD and spread bet customers in 2017 were worse than the ones in 2016, because it decreased by 23%, from £24.2 million to £18.8 million.
There were downwards in the expenses as well, like 15% decrease from £6.6 million in 2016 to £4.7 million in 2017 in total commission paid to the introducing brokers. Due to the fact that marketing became more focused and promotional offers were reduced, the company’s expenditure at this point fell 33% from £6.1 million in 2016 to £4.2 million in 2017.
ETX Performance in 2017
It is obvious that ETX Capital did not make any significant gain in 2017, while in 2016 the company acquired the client list is of PipIndex, in 2015 it won the auction regarding Alpari UK’s client list. What it did during 2017, is that it put the whole attention on the UK market, getting 62 % from CFD and spread bet customers in its UK home market, which was also an increase compared with 54% last year.
As we have seen, ETX Capital had the loss of £2.7 million in 2016 which followed many serious changes in the company. Following these changes, there has been the downward in the number of active customers, CFD retail and spread bet customers, and the expenses paid to the introducing brokers as well.