The UK subsidiary of the popular global brokerage company, OANDA Europe Ltd., experienced a significant boost in activity, revenue, and profit in 2020, bouncing back from its disappointing financials in 2019. According to data extracted from the firm’s Companies House filing for the fiscal year that ended on December 31, 2020, OANDA Europe saw a 148% increase in revenue and a substantial increase in profit.
The previous fiscal year was a disappointment for the broker, generating only £11.8 million in revenue and posting a loss of £3.6 million. However, in 2020, the company experienced a massive increase in activity, resulting in £29.8 million in revenue, a 148% increase. This led to an operating profit of £5.6 million and a net profit margin of £4.6 million. Although the client funds held by the firm decreased from £42.8 million in 2019 to £38.1 million in 2020, the company improved its financial position significantly.
OANDA Europe primarily attributes the 2019 losses to tightening regulation from the ESMA, with leverage rates becoming severely limited for retail investors. However, COVID-19 proved to be the company’s salvation, helping it achieve some of its primary 2020 company goals, which were to reach profitability, expand the client base, revamp the product offer, control costs tightly, and continue to meet regulatory and legal obligations.
After reviewing the report and the changes the company has made since, including launching professional accounts, introducing MT5 access, and rolling out a suite of service upgrades that encompass cryptos, payment methods, and referral bonuses, it would seem that the company has mostly achieved its goals.
Furthermore, in December 2020, OANDA established a Malta-based entity to maintain its European clientele after Brexit. Additionally, it acquired Dom Maklerski TMS Brokers SA in Poland to expand its reach. The filing report also mentioned that “the financial markets experienced heightened volatility driven primarily by the Covid-19 pandemic” in the early part of 2020. This, coupled with investment in marketing and product improvement, resulted in a rise in new customers, increased trading activity from existing clients, and higher levels of reactivation of dormant clients, leading to a significant increase in trading revenue.
OANDA is a well-established brokerage firm that was founded in 1996 as a forex-only broker. Today, it has expanded to offer CFDs and spread betting in forex, indices, commodities, cryptocurrencies, and bonds. Clients can take advantage of tight spreads and competitive trading tools with no minimum deposit, making it an ideal choice for both novice and experienced traders. This multi-regulated broker offers its clientele a choice of three sophisticated trading platforms to choose from.