Swissquote UK Loss Widens Amid Brexit Trading Decline

Swissquote UK reports £1.16m loss in 2024 as Brexit curbs growth; trading volumes fall 53%, turnover plunges 48%.

Key points:

• Swissquote UK’s annual loss more than tripled as Brexit restrictions hit customer acquisition and volumes.
• Broker plans product diversification to strengthen UK market position amid regulatory headwinds.

Swissquote Ltd, the UK subsidiary of Swiss financial services group Swissquote, posted a significantly wider annual loss for 2024 as Brexit-related restrictions continued to hamper customer acquisition and weaken trading activity.

The London-based CFD broker reported a pre-tax loss of £1.16 million for the year ended December 31, more than triple the £354,000 loss recorded in 2023. Trading volumes plunged 53% year-on-year, while net turnover fell 48% to £418,567.

The sharp decline underscores the enduring consequences of the UK’s departure from the EU, which stripped British financial firms of passporting rights 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 into limited client growth and lower trading volumes,” Swissquote said in its annual report.

Swissquote UK Loss Widens Amid Brexit Trading Decline

Administrative expenses increased 18% to £1.94 million, partly driven by £215,890 in employee share and option awards that were not recognized in the prior year. The broker’s headcount fell to nine employees, down from 11 in 2023.

Cash reserves also declined, with £6.09 million in cash and cash equivalents at year-end, compared to £7.03 million a year earlier. Client money held in segregated accounts dropped to £5.89 million, down from £7.49 million.

Swissquote Ltd (UK) Key Financials

Despite mounting losses, Swissquote Ltd said it has completed the assessment of new products tailored for the UK market and expects the expanded offering to diversify revenues and strengthen its domestic presence.

The UK unit also continues to support Swissquote Capital Markets Ltd, the group’s Cyprus-based subsidiary, helping the firm maintain an EU footprint after Brexit.

Operating as a matched principal broker, Swissquote Ltd takes no market risk, instead generating revenue from commissions and overnight funding charges on client CFD positions.

The financial picture at the group level remains more resilient. Swissquote reported $444.2 million in revenue for H1 2025, prompting management to raise its full-year pre-tax profit guidance to $452.6 million from a previous forecast of $440.2 million.

While the UK business struggles under regulatory headwinds, Swissquote’s broader global operations continue to underpin overall profitability, offering some relief as its London arm works to reposition itself in a post-Brexit landscape.

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