ActivTrades’ 2023 Revenue Plummets, Resulting In Losses
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The income of ActivTrades, a London-based CFDs and forex broker, fell to £27.5 million in 2023 from the preceding year’s £50.2 million, indicating a drop of 45.2 percent. In addition, the broker reported a net loss of £5.8 million, a decrease from a profit of nearly £16.3 million.
The most recent Companies House submission from ActivTrades PLC indicates that the company’s sales expenses remained unchanged at £2.8 million, compared to £2.9 million in 2022. The sales didn’t go down even though the company made less money. Meanwhile, administrative costs for the previous year rose 17 percent to £34.4 million.
Interest Earnings Soared By 350% To £2.7 million
The broker collected £2.7 million in interest revenue, 350 percent more than the prior year. According to the filing, the notable surge in the company’s expenses this year mainly came from improved marketing efforts.
The firm noted that it had been actively pursuing new markets and growing its user base, which required a more considerable investment in marketing efforts.
The approach may have worked, as the broker found 206,690 new possible customers in 2023. Of these, 14,623 started accounts with money, an 80 percent increase from the previous year. By the end of the year, the broker had 27,943 active customers, up by 37 percent. Monthly transactions on the brokerage platform reached $56.4 billion, showing a 9 percent rise.
As customers are now located worldwide and demand has kept increasing, the Group has set up offices beyond its London headquarters.
Besides the United Kingdom operations, the ActivTrades brand is managed by subsidiaries in Portugal, Luxembourg, and the Bahamas. Another subsidiary in Brazil is also gearing up to start trading. All these subsidiaries operate under the UK entity, and their collective results are included in the consolidated financial report.
ActivTrades Seeks To Continue Innovating And Offering New Financial Products
The Group aims to keep its customers by offering excellent service and also plans to attract more customers through direct marketing and promotions. ActivTrades noted that it will keep inventing and delivering new financial products to its clients.
Over the years, the Group has maintained a strong market presence in Western European countries, the filing stated. In recent years, the Group has emphasized getting clients from emerging markets, especially in Latin America, to capitalize on these markets fully.”
ActivTrades is a brokerage company in the UK that provides an online trading platform for trading Forex, spread betting, and Contracts for Difference (CFDs). It offers services to institutional and retail traders through the online trading platforms TradingView, MetaTrader 5, MetaTrader 4, and ActivTrader.
