GCM Prime Returns as EC Markets: Generates $187K Turnover in 2022

<p dir="ltr">EC Markets Group Limited (previously known as GCM Prime), an FCA-registered brokerage, resumed its operations last year, generating an annual turnover of $187,000 by the end of December 2022. </p><p dir="ltr">GCM Prime Reenters the Market under New Ownership</p><p dir="ltr">However, it continued to be a loss-making company with an operating loss of $660,140, compared to $779,996 in the previous year. The London-based company made a gross loss with a sales cost of $191,207. Further, administrative expenses of $656,433 were higher than the previous year’s figures of $643,372, pushing the losses even deeper.</p><p dir="ltr">The broker ended the year netting a loss of $659,579, following a minimal interest income of $565.</p><p dir="ltr">Under its FCA license, <a href="https://www.financemagnates.com/institutional-forex/brokerage/exclusive-gcm-prime-asks-clients-halt-trading-withdraw-funds/">EC Markets</a> offers the margin spot <a href="https://www.financemagnates.com/terms/f/forex/">forex</a> and contracts for differences (CFDs) instruments of precious metals, indices, and crude oil. </p><p dir="ltr">“The Company’s principal activity during the period continued to be that of an execution-only trader brokerage of CFD and rolling spot forex,” the Companies House filing stated.</p><p dir="ltr">Apart from the UK entity, the EC Markets brand operates with two offshore licenses: one obtained from the Seychelles Financial Services Authority and another from the Mauritius Financial Services Commission. The retail-focused services under the offshore entities are also much broader with cryptocurrency CFDs.</p><p dir="ltr">The Fast Fall of GCM Prime</p><p dir="ltr">GCM Prime shuttered its services in 2017, only a couple of years after its launch, after <a href="https://www.financemagnates.com/institutional-forex/brokerage/gcm-prime-reports-3-million-loss-in-wake-of-gcmfx-bankruptcy-debacle/">recording losses of close on £4 million</a> ($3.87 million), Finance Magnates reported earlier. The prime of prime brokerage firm’s problems can be traced back to the first few months of 2017 when <a href="https://www.financemagnates.com/institutional-forex/brokerage/breaking-gcm-prime-informs-clients-not-affiliated-gallant-capital-markets/">Gallant Capital Markets</a>, a retail broker known as GCMFX, filed for <a href="https://www.financemagnates.com/terms/b/bankruptcy/">bankruptcy</a>. </p><p dir="ltr">GCM Prime had no connection to GCMFX despite its similar-sounding name. However, rumors spread across the industry that there was indeed a connection between the two firms and that GCM Prime would be negatively impacted by the <a href="https://www.financemagnates.com/institutional-forex/brokerage/director-confirms-pop-broker-gcm-prime-is-solvent/">broker’s bankruptcy filing</a>. London-based Chinese entrepreneur Xiaoliang Lyu later acquired the assets of GCM Prime, leading to the rebranding of the platform.</p>

This article was written by Arnab Shome at www.financemagnates.com.