LeapRate Exclusive… LeapRate has learned via regulatory filings that FCA regulated MT4 broker ActivTrades has just reported its financial results for what seems to have been a very successful 2016.
Alex Pusco, ActivTrades
ActivTrades, which is controlled by Swiss entrepreneur Alex Pusco who still serves as the company’s CEO, saw Revenues grow by 11% in 2016 to £34.9 million (USD $45.0 million), versus £31.4 million in 2015. And that is after Revenues grew by a very healthy 27% in 2015. As recently as 2012 ActivTrades’ Revenues were just £14 million, so the company has indeed been on a healthy growth spurt for most of this decade.
On the bottom line, Net Profit came in at £12.8 million in 2016, up 33% over 2015. Again, a very good result.
And it looks like the company is not done growing just yet. ActivTrades is paying out a dividend of just £2.0 million for 2016, plowing back most of its earnings into the company, targeting continued expansion and growth in markets outside of Europe (more on that below).
As at year-end ActivTrades reported more than 12,000 clients actively trading each month, up from 10,000 in 2015. The company signed up 9,544 new clients in 2016, up 6% over 2015.
ActivTrades reported £45 in net client deposits in 2016, up from £34 million during 2015, (which in turn was up 23% from 2014) – again, a key driver of ActivTrades’ long-term growth.
While ActivTrades didn’t report monthly trading volumes, they did say that volumes were up 29% over 2015, not unexpected given that Revenues were up as well. But, since Revenues were up by 11% and volumes by a lot more than that, we have an indication of increasing competition and tightening spreads in the FCA regulated brokerage market.
Based on ActivTrades Revenues and margins, and comparison with other brokers, we estimate ActivTrades monthly volumes in 2016 at about $75-80 billion.
While most of ActivTrades’ business and volume has historically originated from Europe-based clients, the company has been making a concerted effort to attract new customers from outside the continent. During 2016, 46% of all new trading accounts at ActivTrades were from non-EU customers. New customers from the UK represented only 4% of the total.
Overall, 24% of ActivTrades Revenue in 2016 (or £8.3 million) came from outside the EU.
Within Europe, the company’s main markets remain Germany, Italy, France, Spain and Portugal.
London-based ActivTrades’ Milan, Italy office was opened in 2011 to support the promotion of ActivTrades to Italian customers, and employs 5 people. The company’s larger branch in Sofia, Bulgaria, opened in 2012, now employs more than 100 people and handles all the technology aspects of the company’s business. The remainder of ActivTrades’ 203 employees are in its UK headquarters.
ActivTrades reported a capital base of £39.5 million at year-end 2016.
ActivTrades’ 2016 income statement:
