ETX Capital Sees 48% Jump in 2020 Revenue, Client Assets Touch Record

Monecor (London) Ltd, the operator of FX and CFDs broker ETX Capital, has reported a 48 percent jump in trading revenue in its recently published annual financials for fiscal 2020, ending December 31. The total client assets on the platform also jumped by 57 percent to a record £225 million.

According to the latest Companies House filing, revenue of the UK unit came in at £31.8 million, climbing from the prior year’s £21.3 million. The figures aligned with previously revealed data for the first eleven months of 2020 that showed a 49 percent yearly revenue growth.

ETX Capital’s revenue was primarily generated from bid-ask spreads, roll-over interests on funding, and the net impact of hedging. The filing detailed that spreads generated most of the income that jumped by 68 percent to £23 million. This represented around 77 percent of the total revenue of the broker. 

“This was primarily driven by unprecedented Covid driven volatility in Q1 and Q2,” the filing stated.

While funding also increased by 8 percent to 8.9 million, the net impact of hedging was reduced by 94 percent to £0.2 million. It also generated additional revenue of £1.1 million from corporate broking.

Closed the Year in Profits

Despite a 9 percent jump in administrative costs, mostly due to an increase in staff costs and sales commissions, the broker reported a net profit of £428,000 for the period, recovering from a loss of £2.6 million in 2019.

The group EBITDA also came in at a profit of £2.7 million, compared to a loss of £1.2 million in 2019. The PBT stood at £0.3 million profit, up from the previous year’s loss of £3.2 million.

Commenting on the results, ETX Capital CEO, Philip Adler said: “The year has been truly eventful, I am very pleased with our results and the team performance during COVID and we finished on a high with the acquisition of ETX Capital by Swiss-based private equity firm Guru Capital which helped set our new vision and initiatives.”