XM and Trading.com Operator Reports £1.09 Million Net Loss in 2022 despite Higher Revenues

<p>Despite
significantly higher revenues, rising operational costs in
2022 led to a noticeable net
loss for the operators of popular brokerage brands, such as XM and Trading.com. Trading Point of Financial Instruments UK Limited (Trading Point)
reported a net loss of £1.09 million last year.</p><p>Trading Point Sees Higher
Revenues but Also a Significant Loss</p><p>Trading Point
is a company licensed by the UK's Financial Conduct Authority (FCA) that
manages popular brands in the retail investment market. In addition to the
aforementioned XM and Trading.com, <a href="https://www.financemagnates.com/forex/brokers/trading-com-xms-new-site-goes-live/amp/" target="_blank" rel="follow">launched in 2019</a>, its portfolio includes TP Asset Management. According to a report recently published in the UK's
Companies House, the company's revenues increased over £300,000, rising from
£705,077 <a href="https://www.financemagnates.com/forex/trading-point-of-financial-instruments-uk-sees-56-dip-in-revenues-during-2021/" target="_blank" rel="follow">reported in 2021</a> to £1,054,038 last year.</p><p>During
2022, the company's operational expenses also increased, rising from £1.8
million to £2.27 million. As a result, the total net loss stood at £1.09
million. A small consolation may be that the loss in 2021 was even greater,
amounting to £1.17 million. Further analysis of the Trading Point report
revealed that the company's total assets significantly decreased over the year
from £2.6 million to £1.6 million, as did its total equity from £2.4 million
to £1.3 million.</p><p>The report
does not break down the revenues and costs incurred by the individual brands
owned by the company. It should also be noted that a significant portion of its
operations is carried out by an entity registered in Cyprus, Trading Point
Of Financial Instruments Ltd. The above financial data pertains only to the
UK-based entity. </p><p>Finance
Magnates previously
reported that <a href="https://www.financemagnates.com/forex/fxpro-uk-revenue-rises-by-20-despite-net-loss/" target="_blank" rel="follow">another UK broker, FxPro</a>, additionally failed to achieve profitability
despite a surge in revenue in 2022.</p><p>Trading Point Expands into
the US Market</p><p>Last year,
<a href="https://www.financemagnates.com/forex/brokers/tradingcom-launches-fx-trading-services-in-the-united-states/" target="_blank" rel="follow">Trading.com announced its entry into the US market</a>, offering over 70 trading
pairs to American traders. This move was signaled when the brand received
approval from the National Futures Association and registered as a retail
<a href="https://www.financemagnates.com/terms/f/forex/">forex</a> dealer with the Commodity Futures Trading Commission.</p><p>Pambos
Panayiotou, the CEO of Trading.com Markets Inc., stated that based on numerous
discussions with US retail traders, they identified a gap in what traditional
forex dealers offer compared to what clients actually need.</p><p>Launched in
2019 by Trading Point, the company behind the forex and CFDs <a href="https://www.financemagnates.com/tag/xm-com/" target="_blank" rel="follow">broker XM</a>,
Trading.com has been a significant addition to its portfolio. The company even
<a href="https://www.financemagnates.com/forex/brokers/xm-to-transfer-clients-launch-trading-com-in-july/" target="_blank" rel="follow">transitioned XM's UK clientele</a> to the new platform after its introduction.</p>

This article was written by Damian Chmiel at www.financemagnates.com.