CMC Markets improves gross profit by as much as 318%

CMC Markets is another broker that can boast of improved financial results in 2019 year compared to last year. In the second and third quarters of 2019. company listed on the London Stock Exchange recorded an increase in net operating income of 45%, which gave a result of 102,3 million GBP compared to 70,6 million reported in the same period of the previous year.

Earlier, they published positive results X-Trade Brokers, which increased profit by 434% and Tickmill Group reporting 73% net profit improvement. Could European Forex brokers have already had a hard time? Or is it a matter of returning to the market higher volatility on selected instruments?

Be sure to read: Canada wants to introduce new regulations similar to ESMA

Less customers, more revenue

In the published financial report, CMC Markets informs that gross profit (before tax) increased by 318% to 30,1 GBP million. Investments in brokerage activities and higher salaries increased operating expenses by 13% to GBP 71,2 million. Despite this positive information, compared to the same period of the year, 2018 CMC recorded a decrease in the number of active customers by 7%.

The company informs that it is constantly investing in the development of technology and transaction platforms in order to diversify and wanting to build new institutional relations. The effect of this is to be a partnership with ANZ Bank, which generated net income of 10 million GBP.

Peter Cruddas, CEO of CMC Markets, comments:

“I am pleased with the good results of the first half of the year. This time last year there was an uncertainty about the regulatory change that was hanging over the sector, and the client's response to changes in the minimum margin levels was unclear. A year later, we see customers adapt while maintaining their interest in the products and trading platforms we offer. It is clear that we are becoming more than just a CFD company and the profits also come from technology partnerships such as the ANZ contract. This is an exciting area of ​​business that will continue to grow thanks to continued planned partnerships and continued investment to improve the offer. ”

Source: CMC Markets