Swissquote
Ltd, the UK arm of Swiss financial services group
Swissquote, reported a deeper loss in 2024 as the online
broker continues to grapple with Brexit-related restrictions that
have limited its ability to attract new customers.
The
London-based CFD company posted a loss of £1.16 million for the year ended
December 31, more than tripling from a £354,000 loss in 2023. The widening
deficit came as trading volumes dropped 53% compared to the previous
year, while net turnover fell 48% to almost £419,000.
The
company’s struggles reflect the ongoing impact of Britain’s departure
from the European Union, which stripped UK-based financial firms of
their ability to passport services across the bloc.
“As a
consequence of Brexit, passporting rights were lost and
this change in the British regulatory and legal framework had a
significant impact on new customers onboarding, which translated
in limited client growth and lower trading volumes,”
Swissquote said in its annual report.
Administrative expenses
rose 18% to £1.94 million, partly due to £215,890 in
employee share and option awards that weren’t recognized in the prior
year. The company employed nine people at year-end, down from 11 in 2023.
Despite the
challenging environment, the firm maintained £6.09 million in cash and
cash equivalents, though this was down from £7.03 million a year earlier.
Client money held in segregated accounts totaled £5.89 million,
compared to £7.49 million in 2023.
Swissquote Ltd (UK
Subsidiary) Key Metrics
Metric | 2024 | 2023 | % Change |
Net Turnover | £418,567 | £810,210 | -48.3% |
Administrative Expenses | £1,943,759 | £1,641,994 | +18.4% |
Loss Before Tax | -£1,155,796 | -£354,108 | +226.4% |
Total Assets | £6,471,063 | £7,556,525 | -14.4% |
Related: Swiss Regulator Pressures Swissquote Over Rising Cybercrime Risks: Report
Strategic Pivot
Toward New Products
Swissquote
Ltd has been working on expanding its product offering to
diversify revenue streams and strengthen its position in the
UK market. The company said it has “concluded the assessment of
additional products designed for the UK market and expects to diversify
its revenue streams and strengthen its UK presence.”
The firm
continues to provide support for Swissquote Capital Markets
Limited, the group’s Cyprus entity, as part of efforts to maintain
a European Union presence following Brexit. This supporting
role leverages the UK unit’s existing knowledge while
covering functions necessary to affirm the brand’s presence in the
EU.
Swissquote
Ltd operates as a matched principal broker, meaning it takes no market trading
risk by offsetting all client trades with its Swiss parent company. The firm’s
revenue comes primarily from commissions charged to clients and overnight
funding charges on open CFD positions.
If the case
of the entire Group, Swissquote’s financial condition looks decidedly better. The
company generated $444.2 million in revenue in H1 2025, which resulted in
raising the full-year pre-tax profit guidance to $452.6 million from $440.2
million.
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Swissquote
Ltd, the UK arm of Swiss financial services group
Swissquote, reported a deeper loss in 2024 as the online
broker continues to grapple with Brexit-related restrictions that
have limited its ability to attract new customers.
The
London-based CFD company posted a loss of £1.16 million for the year ended
December 31, more than tripling from a £354,000 loss in 2023. The widening
deficit came as trading volumes dropped 53% compared to the previous
year, while net turnover fell 48% to almost £419,000.
The
company’s struggles reflect the ongoing impact of Britain’s departure
from the European Union, which stripped UK-based financial firms of
their ability to passport services across the bloc.
“As a
consequence of Brexit, passporting rights were lost and
this change in the British regulatory and legal framework had a
significant impact on new customers onboarding, which translated
in limited client growth and lower trading volumes,”
Swissquote said in its annual report.
Administrative expenses
rose 18% to £1.94 million, partly due to £215,890 in
employee share and option awards that weren’t recognized in the prior
year. The company employed nine people at year-end, down from 11 in 2023.
Despite the
challenging environment, the firm maintained £6.09 million in cash and
cash equivalents, though this was down from £7.03 million a year earlier.
Client money held in segregated accounts totaled £5.89 million,
compared to £7.49 million in 2023.
Swissquote Ltd (UK
Subsidiary) Key Metrics
Metric | 2024 | 2023 | % Change |
Net Turnover | £418,567 | £810,210 | -48.3% |
Administrative Expenses | £1,943,759 | £1,641,994 | +18.4% |
Loss Before Tax | -£1,155,796 | -£354,108 | +226.4% |
Total Assets | £6,471,063 | £7,556,525 | -14.4% |
Related: Swiss Regulator Pressures Swissquote Over Rising Cybercrime Risks: Report
Strategic Pivot
Toward New Products
Swissquote
Ltd has been working on expanding its product offering to
diversify revenue streams and strengthen its position in the
UK market. The company said it has “concluded the assessment of
additional products designed for the UK market and expects to diversify
its revenue streams and strengthen its UK presence.”
The firm
continues to provide support for Swissquote Capital Markets
Limited, the group’s Cyprus entity, as part of efforts to maintain
a European Union presence following Brexit. This supporting
role leverages the UK unit’s existing knowledge while
covering functions necessary to affirm the brand’s presence in the
EU.
Swissquote
Ltd operates as a matched principal broker, meaning it takes no market trading
risk by offsetting all client trades with its Swiss parent company. The firm’s
revenue comes primarily from commissions charged to clients and overnight
funding charges on open CFD positions.
If the case
of the entire Group, Swissquote’s financial condition looks decidedly better. The
company generated $444.2 million in revenue in H1 2025, which resulted in
raising the full-year pre-tax profit guidance to $452.6 million from $440.2
million.
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