Tickmill UK Sees 86% Profit Jump in 2021 despite a Revenue Decline

FCA-regulated Tickmill UK Limited, a subsidiary of the wider Tickmill Group, reported an 86 percent jump in the pre-tax profits for the year 2021, which ended on December 31. The absolute figure came in at £1.48 million, compared to £796,121 in the previous year.

After considering taxes, the net income at the end of the year came in at £1.26 million, increasing from £677,290.

However, the total revenue of the broker from its UK operations declined. It came in at £7.68 million, which decreased by 8.3 percent year-over-year. Interestingly, the broker managed to reduce the administrative expense for the year, resulting in an operating profit of £1.5 million, which is an annual increase of 85.5 percent.

The offerings of Tickmill include currency pairs and CFDs of indices, commodities and bonds. In addition, it introduced exchange-traded derivatives (ETDs) to its retail and professional clients and invested heavily in the new business line. Moreover, it continues to expand its product offering.

Client Metrics

The Companies House filing further highlighted the trading activities on the UK platform, which remained almost flat. The trading volume in the last fiscal year came in at $195 billion, compared to the prior year’s $196 billion. The significant decline in trading activities can also be seen from a declining number of trades: it dropped down to 8.6 million from 9.8 million.

On top of that, the number of new clients onboarded by the UK platform of Tickmill declined by 40 percent. It onboarded 3,947 clients last fiscal, compared to 6,618 in the previous one.

“For the twelve months… trading conditions were again affected by fluctuations in market volatility
Volatility

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.
Read this Term as a result of the global COVID pandemic that has dominated much of 2020 and 2021,” the Companies House filing stated. Furthermore, major geopolitical events pushed the trading volumes and number of trades down.