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Forex Broker News: Finotec Posts Massive Rise In Profits

  • Forex broker Finotec posts huge rise in profit for FY2020
  • Revenue for the FCA-regulated broker increases by a jaw-dropping 41% to more than $1.5 million
  • Transactions skyrocket by 110% to a value of over 3 billion.

It’s been a hugely successful year for the UK-based forex broker Finotec Trading UK Limited (FTUK). The company published its financial statements for the financial year ending December 2020 and they make for some impressive reading.

Finotec UK’s revenue increased by a jaw-dropping 41% to top the $1.5 million mark. Transactions on the forex broker’s platform also jumped with a total value coming in at a staggering 3 billion. Volume-based transactions were up by an impressive 110 percent year on year.

UK-based Finotec is an institutional investment broker which offers clearing services to professional traders, brokers, investors, asset managers as well as hedge fund operators. The broker requires a minimum investment of £100,000 and does not accept any retail traders.

The forex broker also offers ancillary technologies as well as investment management solutions.

“Finotec provides a diverse range of customized services to its clientele, as well as the tools and systems needed to set up and operate their flourishing FX Business,” the broker said in the notes to its financial statements.

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Forex broker Finotec Posts Record Performance And Looks To Expand

Although total revenue for Finotec increased substantially so did the costs of sales associated with the forex broker’s operations. A decline in administrative expenses was also posted. This was a partial contributor to the broker’s total profit of £313,792. To put this into perspective, total profit for FY2019 was just £59,774.

The Companies House filing also listed the impact of the Covid19 pandemic and Brexit on Finotech’s business.

“Despite this, Finotec continues to attract interest in its growing portfolio of higher tier products and services and has recently expanded into the provision of Hedge Fund solutions to regulated Asset Managers,” the forex broker explained in further notes to the financial statements.

Finotec Looking To Reach $20 million in total deposits by end of 2021

The UK-based forex broker is also heavily promoting its Hedge Fund side of the business. Finotec explained that the Hedge Fund setup process takes only 2 weeks to complete. The setup process itself costs €15,000 while the broker then charges at least €2,000 as a monthly service fee.

“The immediate consideration for Finotec is a monthly transaction volume of more than $1 billion for each $1 Million AUM, which would generate an additional income of up to $15,000 (including price improvements) per month,” the broker said.

Finotec revealed that its target is to reach a total deposit figure of $20 million by the end of 2021”.
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Gerald Fenech

Gerald Fenech

Freelance journalist and writer with over ten years experience in forex and fintech writing. Specializes in crypto and blockchain