Armada Markets, a global Forex broker looking to become more transparent with it’s headquarters in Tallinn, Estonia claims through a company release to have reported a record $23.3 billion trading volume for October which is 103% higher compared to October 2013 and 14% higher compared to the previous month. The firm sees the growth being supported by continued elevated volatility on all financial markets and strong growth in client numbers from the Asia Pacific region. Armada Markets also continues to show strong profitability with Q3 net profit coming in at $0.68 million on top of $1.10 million earned in H1 of 2014. Armada expects annual 2014 net profit to reach $2.4 – $2.7 million.
The company also shed some light on the mix of clients reporting that in October 2014 its top 100 clients accounted for 64.9% of the total trading volume whereas the most active client accounted for 3.3% of total trading volume (this goes to show that more is less sometimes, and it pays to focus on a higher breed of clientele). Armada Markets has tried to reach out to the savvy retail and institutional clients who demand very low spreads, low commissions and a trading environment with fast execution and no broker-imposed restrictions on profitability.
Forward Guidance
Armada stated that October was an eventful month in financial markets with the Federal Reserve completing its QE program while the European Central Bank started its ABS purchasing program and the Bank of Japan increased its stimulus efforts. During the month, Armada Markets clients were actively using the opportunities presented by the collapse of Japanese Yen, Russian Ruble and the breach of $1,180 support level in gold. As a result of increased volatility and growing client numbers the firm expects to reach a monthly trading volume of $25 – $35 billion within the next 6-9 months.
Currently, Armada Markets is registered as a spot foreign exchange and metals broker by the Ministry of Economic Affairs in Estonia and is looking to broaden out as the company has submitted a complete application for a European Union MiFID licence and will see to broaden the scope of it’s services upon approval.
Illimar Mattus, CFO of Armada Markets said: “The positive financial results of Armada Markets are something we have expected and it is well-received also by our Clients who want to see that they are dealing with a well-managed and a growing brokerage firm. We have been capitalizing on this growth by investing into IT and infrastructure and expanding our team. In October we increased our global workforce by 9% and going forward continue to look for talented people.”