Darwinex Stops Four-Year Revenue Record
UK-based social trading broker Darwinex reported decreases in net loss and operating revenue in fiscal 2019. This was the first in four years after the agency peaked its revenues in 2018.
Their financials ended June 30, 2019 suffering said losses but turned an organic profit for the first time since 2012.
Operating revenue went down 19 percent year-on-year, from £3.35 million in 2018 to £2.72 million in 2019. These revenues were mainly from commissions on foreign exchange trading.
With a net profit of £683,146, the broker lost nearly £141,804 in 2019.
Previously, Darwinex saw revenues grow from €146,500 (£124,700) in 2015 to €1.0 million (£854,200) in 2016. The figure doubled in 2017 with €2.15 million (£2,135,500).
The company described a market-wide reduction for reduced trading volumes because of regulation changes and market conditions. The European Securities and Markets Authority upped restrictions earlier last year.
ESMA banned welcome bonuses or other incentives that encourage prospective or existing clients to trade CFDs. Some brokers relied on them to attract clients, which the broker previously offered on commission fees.
The rising zero-commission trend, in addition to the ongoing Brexit deal, contributed to much of Darwinex’s uncertainties.
About Darwinex
Darwinex, founded in 2012, is a Financial Conduct Authority regulated broker that helps traders develop skills in foreign exchange. The London-based broker offers to exchange in forex, indices, commodities, USA stocks, and cryptocurrencies.
Their DARWIN backtesting tool tracks all portfolio tools used with Darwinex. The results they accumulate include investor divergence and performance fees paid.
The tool evaluates past return/risk ratios to monitor the portfolio’s evolution over time.
Traders can discover other traders in the platform with lists of strategies on both long and short-term investments. These instruments include currencies, stocks, commodities, and/or indices.
59 percent of retail investor accounts lose money when trading CFDs with the provider.
