OANDA UK Reports A Slight Drop In Financials To $16.85 Million
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OANDA, a brokerage firm headquartered in Canada, has posted its financial results for the financial year ending December 31, 2022.
During the reported period, the annual revenue came in at £16.85 million, slightly dropping from the £16.88 million reported during the previous year. The operating profits before tax increased to £704,581 from £474,824.
The rise in operating profit is attributed to increased interest receivable and income earned from a legal settlement.
OANDA UK Posts Its Financial Results
OANDA UK says the growth in net profits is attributed to factors like high market volatility, which positively affects revenue. The growth comes despite a drop in active clients as EU27 clients joined a separate OANDA entity, leading to low transaction volumes.
The EU-based operations of OANDA take place from Warsaw, Poland, under KNF’s regulatory framework and that of the Polish Financial Supervision Authority (PFSA).
During the period, OANDA UK also halted its Maltese license. Clients operating under the OANDA Europe Markets Ltd (OEML) brand were moved to OANDA TMS. The Polish Financial Supervision Authority regulates the latter.
OANDA commenced its operations in Malta three years ago in preparation for Brexit. The broker has licenses across multiple jurisdictions and has secured approval for its European subsidiary in Malta.
The clients operating under the OANDA UK entity, OANDA Europe Limited (OEL), could shift to its Maltese subsidiary. These clients can also opt-out and continue using a firm regulated by the Financial Conduct Authority (FCA).
OANDA Acquires Coinpass
OANDA has made several moves to expand its presence across the financial service industry. In August, OANDA acquired a majority stake in the Coinpass cryptocurrency exchange. Coinpass has regulatory approval from the UK’s FCA.
Coinpass is a platform allowing individuals and businesses to trade cryptocurrencies. The acquisition will add to OANDA’s growing portfolio, including contract-for-difference (CFD) offerings.
OANDA’s partnership with Coinpass also gives retail traders a regulated way of accessing the digital economy. It positions OANDA within an FCA-regulated crypto exchange platform.
The partnership aligns with the growing adoption of crypto assets across the UK. Crypto ownership in the UK more than doubled during the previous year, according to a survey conducted in June. This study shows that firms entering the crypto sector can secure a significant market share.
