FCA regulated brokerage house with an HQ in London – ETX Capital – has seen an impressive expansion again after jumping in revenues in 2014 by 38%.
Accoding to a Companies House filing, revenue of ETX hiked 20% to £41.3 million ($50.1 million) in 2015. In the same year, the company also reported that its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached £4.2 million ($5.2 million), rising 11%.
The increase in revenues came mostly from Retail clients. Institutional trading activity at ETX rose only marginally (2%) in 2015, to £5.2 million, or just 13% of the company’s overall activity. ETX Capital’s growth has been driven by increasing client numbers and higher revenue capture per client. The number of clients increased by 36% on a yearly basis, reaching to about 10 000 active clients per month.
ETX continued also on the international field, while its home-market UK revenues reach only for just 37% of the total in 2015, down from 41% in 2014.
As for the more detailed revenue report, the company’s income from spreads has jumped to 87% of the total compared to 71% in 2014. The move higher has been driven by higher trading volumes with retail traders accounting for £30.6 million, which is higher by 59 per cent when compared to the previous year and institutional traders adding £5.2 million (up 2 per cent when compared to 2014).
The company also lowered its expenses on marketing in the run-up to the launch of its new mobile platform and website. The company has increased spending to £4.1 million during the year, due in part to the development of the new frontends. The company is ramping up marketing spend in 2016 after the launch of the redesigned website and mobile front ends.
ETX received a boost in activity in 2015 due to the acquisition of the Alpari UK client list. The company informed now that it felt the migration of ex Alpari UK clients to ETX went quite well, with over £10 million of Alpari UK client money moving over to ETX from about 4,000 active clients by year-end 2015.
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