Weekly Roundup: Earnings from XTB, Plus500, and Naga, Q3 Slowdown Hits Coinbase, and More

XTB Reports 67% Revenue Growth in Q3

In financial reports this week, XTB reported its preliminary and operating financial results for the third quarter, highlighting growth in client acquisition and profit during the period. The publicly listed Polish fintech company attracted over 108,000 new clients, a 60% increase year-over-year. It also reported a consolidated net profit of PLN 203.8 million, nearly doubling its earnings from the previous year.

XTB posted a consolidated revenue of PLN 470.2 million, marking a 67.3% increase compared to the same quarter in 2023. The firm attributed the significant revenue growth to heightened market volatility observed in July and August, which reportedly facilitated sustained trading activity.

Source: XTB

Plus500's Average Deposits Surge to $6,150

Plus500 reported a notable growth in the third quarter of 2024. Its revenue climbed 11% to $187.3 million, and new customer acquisition surged 21% year-over-year. The company's EBITDA reached $82.2 million, marking a 2% increase from the previous year. However, the EBITDA margin contracted to 44% from 48% as the company continued its strategic investments in market expansion and product development.

“During the quarter, revenue and EBITDA increased by 11% and 2% year-on-year, respectively, highlighting our continued investment in attracting new customers, which resulted in the number of new customers increasing by 21% compared to Q3 2023,” commented David Zruia, Chief Executive Officer of Plus500.

NAGA’s Revenue Reaches €31.7M Following Merger

NAGA Group also released its half-year report, presenting unaudited financial results for the first six months of 2024. During this period, the firm highlighted the completion of a merger with Key Way Group, owner of CAPEX.com. The merger reportedly contributed to nearly doubling NAGA’s registered users, total deposits, and trading volume.

NAGA registered revenue of EUR 31.7 million in H1 2024 on a pro-forma basis, compared to EUR 36.0 million in H1 2023. According to the firm, the increase followed a strategic shift aimed at improving profitability and operational efficiency, including the elimination of unprofitable business units.

Source: Naga

Robinhood Postes Crypto Gains in Q3

Robinhood experienced substantial gains from its crypto offerings, with the trading volume on the platform doubling to $14.4 billion. This resulted in a 65 percent increase in revenue from this segment, totaling $61 million. American trading platform generated $637 million in revenue for the third quarter of 2024, marking a 36% increase.

Of this, transactions-based revenue grew to $319 million, up 72 percent. Although crypto revenue posted the largest gains, options trading remained Robinhood’s primary revenue generator, contributing $202 million, a 63% year-over-year increase. Revenue from equities trading also rose by 37% to $37 million.

Q3 Slowdown Hits Coinbase, Pledges $25M for Political Funding

Coinbase missed Wall Street’s Q3 2024 revenue estimate of $1.26 billion, reporting $1.2 billion. Its earnings per share of $0.28 also fell short of analyst expectations of $0.45. The crypto exchange’s EBITDA of $449 million also missed expectations by $20.2 million.

The missed estimates impacted the company’s share price, which dropped by almost 5 percent in after-hours trading. In a letter to shareholders, Coinbase attributed the slowdown to “softer market conditions.” The exchange's total revenue declined by 17 percent quarter-over-quarter, with transaction revenue at $573 million, down 27 percent.

CMC Markets Plans NZX Accreditation for Trading and Clearing in 2025

Financial services company CMC Markets announced its intention to apply for accreditation as an NZX Trading and Clearing Participant in 2025. The application will be lodged with NZ RegCo, the entity responsible for enforcing compliance with NZX’s market rules. The announcement took place at NZX’s Capital Markets Centre in Auckland.

CMC Markets Chief Executive and Founder Peter Cruddas and General Manager for New Zealand Chris Smith attended the event alongside NZX Chief Executive Mark Peterson. Peterson commented on CMC Markets’ plans, indicating that NZX welcomes the company’s participation.

“Over 20% of 26 Degrees’ Brokerage Clients” Are Either Offering or Will Offer Pairs CFDs

“Currently, over 20% of our global brokerage client base is either offering or in the process of releasing Pairs CFDs,” said 26 Degrees’ Group Chief Commercial Officer, James Alexander, to Finance Magnates following his company’s recent launch of Gold Pairs CFDs. He added: “That’s a significant number, and we expect it to become even more prominent in 2025 and beyond.”

Alexander compared the demand for these instruments to the roll-out of Equity CFDs via API in 2017 and 2018. “Back then, very few broker clients offered Equity CFDs; now, the vast majority of major brokers have some form of Equity CFD offering,” he said. “In our opinion, Pairs CFDs will be no different.”

Exness Enhances B2B Liquidity Offering

Exness, a major forex and contracts for differences (CFDs) broker by trading volume, is expanding its B2B liquidity offerings after selecting Centroid Solutions’ Centroid Bridge to extend its prime liquidity to brokerages worldwide. Exness’ integration of Centroid Bridge will enable the broker to reach a wider range of brokers globally who already use Centroid’s services.

“Centroid’s technology will allow us to extend our reach to a wider audience of brokers while ensuring the highest standards of execution speed, stability, and reliability for our clients, the very advantages that have made Exness one of the biggest and most reputable brokers in the world,” said Exness’ Head of B2B Sales, Pete Plester.

GCEX Partners with RULEMATCH to Offer Crypto Trading

Lars Holst’s GCEX announced a partnership with Switzerland-based spot crypto exchange RULEMATCH. The company enhances ultra-low latency trading and integrates post-trade clearing and settlement with netting. The firm offers crypto trading access for its institutional clients.

The partnership enables GCEX’s client base, including hedge funds, algorithmic trading firms, brokers, and ETF/ETP providers, to benefit from binding quotes in an anonymous Central-Limit Order Book with execution times of 25 microseconds, the announcement highlighted.

Forex and CFD Brokers Pay $30,000+ for Enhanced Client Fund Insurance

Retail traders have moved well beyond the days of chasing only high leverage and low spreads. Standard regulatory protections reportedly no longer suffice as FX/CFD clients increasingly expect added layers of financial security. Now, firms can secure these safeguards, starting from $30,000 annually (depending on the number of clients).

In fact, around 40 companies within Lloyd's of London now offer private insurance for client funds, reflecting a broader industry shift toward heightened financial accountability. Additional insurance services for client funds are growing in popularity in the FX/CFD sector.

Plus500 Believes in High Marketing Spends, IG and CMC Have Found Their Sweet Spot

Marketing is a major effort for any retail customer-centric firm. It becomes even more crucial for the three London-listed FX and contracts for differences (CFDs) brokers, IG Group, CMC Markets, and Plus500. All three need to convince new traders to deposit money and trade on their platforms while strengthening their brands. So, how much are these retail brokerages spending on marketing?

Has it gone up or down over the years? And most importantly, where are those marketing expenses going? When it comes to marketing spending, Plus500 is ahead of its other two London-listed competitors. The Israeli broker spent $54.2 million on advertisements, marketing, and commissions on media buying in the first six months of 2024.

CySEC Halts FXOpen EU Sole Shareholder's Voting Rights, Allows Six Months to Restructure

Cyprus Securities and Exchange Commission (CySEC) suspended the voting rights of FXOpen's sole shareholder, Aliaksandr Klimenka, over concerns about his influence on the company's management. CySEC highlighted that the matter is a governance issue that FXOpen EU Ltd must resolve within the next six months.

In July, the regulator reportedly determined that Klimenka's influence as the sole indirect shareholder of FXOpen EU Ltd could potentially harm the company's ability to manage itself soundly and prudently. CySEC's ruling will reportedly suspend Klimenka's voting rights, which are held indirectly through FXOpen Ltd. However, the suspension will take effect after a six-month grace period, giving FXOpen EU Ltd time to find a solution.

Alphabet Stock Soars While AMD Hits a Speed Bump

Alphabet, Google’s parent company, rocketed to the top of the stock charts after delivering a stellar Q3 earnings report. The tech giant not only smashed revenue forecasts but did so with an air of dominance that investors love. Cloud growth was the real star here, overshadowing Alphabet's historical reliance on ad revenue and solidifying its role in the ongoing digital transformation.

Alphabet reported total revenue of $88.27 billion, surpassing Wall Street’s expectations and up from last year’s $76.69 billion. Google Cloud didn’t so much grow, it’s powered Alphabet’s recent growth to new highs.

AMD Earnings Showdown: The Tech Giants Lead the Way

AMD’s earnings call is almost here, and Wall Street’s eyes are on the semiconductors that keep tech’s most valuable players in the game. Wall Street loves a good show, and AMD is delivering with its highly anticipated Q3 earnings call. Investors are on the edge of their seats, hoping AMD's performance will validate its role in what feels like an endless tech rally.

After all, tech giants, especially those in the semiconductor space, have been leading the market charge this year—largely because the world’s obsession with artificial intelligence (AI) has added a little sparkle (and perhaps a little stress) to the investment landscape.

US Elections 2024 and Crypto: How Will Trump or Harris Shape Regulations?

As the United States gears up for another significant presidential election, the intersection of politics and cryptocurrency has emerged as a critical area of focus. The candidates, former President Donald Trump and Vice President Kamala Harris offer contrasting visions for the future of digital currencies and blockchain technology.

This divergence is shaping the political landscape and influencing financial markets, particularly the rapidly growing cryptocurrency sector. Once a niche interest, cryptocurrency has evolved into a major financial force. Its decentralized nature and potential for high returns have attracted a wide range of investors, from tech-savvy millennials to institutional giants.

“Gamification Is a Net Benefit for the Trading Industry”: CEO of Bullrush

Lastly, the landscape of trading has long been dominated by traditional brokerages and prop trading firms that often rely on demo accounts to attract potential traders. However, Bullrush, a trading gamification platform, is stepping into the spotlight with what is perhaps a unique business model that seeks to engage traders in a more interactive and competitive manner.

By combining gaming elements with trading competitions, Bullrush aims to reshape the trading experience, appealing to both seasoned traders and newcomers through paid-entry competitions, educational resources and challenges, the creation of a community, and more.

Until next week!