Despite Increased Revenue, Valutrades Will Lose Money In 2021

Client money increased to an all-time high, according to the business.

However, the cost of sales has skyrocketed.

Valutrades Limited, which is regulated by the FCA, revealed its financials for fiscal 2021, which ended on December 31, showing a startling loss despite an 11% rise in yearly sales.

According to the Companies House statement, the FX and CFDs broker earned £4.41 million in revenue for the year, up from £3.99 million the previous year. It has seen an increase in income after the adoption of ESMA rules in 2018.

However, the broker's sales cost climbed dramatically from £820,813 to £2.2 million, lowering the gross profit to £2.19 million, a decrease of more than 30%. Its UK administrative expenses increased as well, resulting in an operational loss of £443,575, compared to a profit of £865,155 the previous year.

Unbelievable Loss

After deducting interest, the broker had a pre-tax loss of £443,263. The previous year, it made a profit of £884,266. After-tax, the net loss was £471,549, compared to a total profit of £1.16 million in 2021.

On the plus side, the company's retail customer funds increased by 7% last year, reaching £4.53 million from £2.57 million.

“The start to 2022 has been another positive start for Valuetrades, with trends of inflation and interest rate uncertainty, as well as global turmoil, causing increased volatility in financial markets, which has a net positive effect on client volume and commission income,” the Companies House filing continued.

“Valuetrades maintained its strategy to reinvest earnings in the company to build reputation and market share, and this plan is performing well with record new customer acquisition and volumes through 2021 and the start of 2022.”

About ValuTrades

ValuTrades.com is a forex broker situated in the United Kingdom that provides multi-asset trading on the MT4 and MT5 platforms. Continue reading for a discussion of spreads, leverage, and minimum deposit requirements. Determine whether or not you should begin trading with ValuTrades.

More on ValuTrades

Valutrades Limited began operations in 2012. The broker has a registered office in Seychelles, in addition to its London headquarters.

Valutrades is governed by the UK's Financial Conduct Authority (FCA) and Seychelles' Financial Services Authority (FSA).

Thousands of customers from more than 70 countries may trade forex, commodities, and index CFDs online via the website. The main team is situated in London and includes CEO Graeme Watkins and Advisor Gavin Foster.

Read the full details about ValuTrades here: https://www.wikifx.com/en/dealer/7201261939.html

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