ETX Capital, one of the best CFD brokers in the UK has continued its rapid expansion, according to its latest accounts.
ETX Capital increased their revenue by 20 per cent in 2015, with a surge in its client base helping it to grow its earnings.
ETX Capital earnings up 11 per cent year on year
According to information filed with Companies House, top CFD broker ETX Capital increased its revenue by 20 per cent in 2015, from $50.1 million to £41.3 million.
The London-based, FCA regulated brokerage also reported that its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to £4.2 million ($5.2 million), up 11 per cent on the previous year.
According to ETX Capital’s annual report, the company – one of the best CFD brokerages around – has seen its growth driven by increasing client numbers and higher revenue capture per client. The number of clients increased by over a third year-on-year (36 per cent), with the company now boasting around 10,000 active clients per month.
Income from spreads increases to 87 per cent of total revenue
ETX Capital has seen its income from spreads increase to 87 per cent of its total revenue, up from 71 per cent in 2014. The increase has been attributed to higher trading volumes with retail traders accounting for £30.6 million (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 increased profits by reducing its marketing costs in the run-up to the launch of its new mobile platform and website.
Having spent £4.1 million during the year, in part on the development of the new frontends, the top CFD broker intends to increase its marketing spend in 2016 after the launch of the redesigned website and mobile systems.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.