Stratos
Markets Limited, operating under the FXCM UK brand, reported a significant net
loss for the fiscal year 2023, exceeding 350%. According to the FX/CFD brokers,
it reflects a challenging period characterized by reduced market volatility and
strategic changes within the company’s structure.

FXCM UK Reports a Net Loss
of $2.5 Million for 2023

The FXCM UK’s
turnover dropped by 115.7% year-over-year, resulting in a $1.7 million loss.
Profit on ordinary activities before taxation experienced an even sharper
decline, falling by 389.5% to a loss of $2.2 million. The final net loss
amounted to over $2.5 million, compared to the $860,500 profit reported the
previous year (-350%).

Retail
trading volumes, a key metric for the company’s performance, decreased by 37.6%
in 2023.

“Volatility
is important for the Company, being highly correlated to trading activity in
the markets,” Stratos commented in the financial report. “For 2023 volatility
was lower than in 2022. The VIX average, a measure of volatility , varied
between 16.34 and 38.93 in 2022 and decreased in 2023 to 12.10 in December
2023, the lowest the index has been since late 2019.”

A year ago,
the UK branch of FXCM operated under the name Forex Capital Markets Limited,
but on September 10, 2023, it
was renamed Stratos Markets Limited. This occurred shortly after FXCM’s
Cyprus-based company, FXCM EU Ltd, underwent a name change to Stratos Europe
Ltd, as part of a broader group strategy aimed at rebranding its European
subsidiaries. However, this does not mean that FXCM will change its trading
brand to Stratos.

“The
name change to Stratos is part of a restructuring of the firm to give us more
flexibility. FXCM will continue to operate as a subsidiary of Stratos, similar
to how Google operates under Alphabet Inc.,” the FXCM’s spokesperson
commented in an e-mail response to Finance Magnates a year ago.

Despite the
challenging year, FXCM UK maintained a solid capital position. Client cash held
stood at $125.7 million, down 11.6% from the previous year, while capital
resources slightly decreased to $62.9 million from $64.4 million in 2022.

According
to the newest financial report, Strators navigated through several external
challenges, including the collapse of three US banks in March 2023. The company
reported that it successfully withdrew most of its funds from Signature Bank
before its closure, with only a small amount remaining within FDIC insurance
limits.