FXCM UK is a wholly-owned subsidiary of Forex Trading, LLC. It is a part of the FXCM Group, LLC.
This foreign exchange and contracts for difference (CFD) broker are under the regulation of the Financial Conduct Authority (FCA).
FXCM UK posted a loss of $1.04 million for 2019, according to the document filed through UK Companies House. The company still closed out the year on a loss, but the loss is actually less on a yearly comparison. The loss they posted was a $4.3 million loss in 2018.
The turnover over a one-year period came in at $16.72 million. When compared to the previous year, which achieved a turnover of $58.8 million, it is lower by 71.6%. This is a staggeringly large drop in turnover with losses for the year.
Moreover, it is worth highlighting that 2019 was the first full year of operations for FXCM UK. This was after the ESMA implemented its product intervention measures. This was also compounded by low volatility in the markets.
FXCM UK Sees YoY Decline in Retail Trade Volume
Reports say that ESMA’s restrictions, which included leverage caps, hit a lot of brokers operating within Europe and the UK hard. Many investors are seeing significant drops in revenue.
At this point, it has not been confirmed whether this is the reason for FXCM UK’s financial performance. Despite ESMA’s measures placed on brokers, FXCM UK did still manage to reduce its loss by 70.8 percent.
For the year ending on the 31st of December 2019, retail trade volume came in at $542 billion. This might seem like a solid value, however, it is lower by 50.9 percent from the $1.10 trillion retail trade volume present in 2018.