Is Oval X Shutting Down?
Despite claims by Oval X that it’s “business as usual”, the broker appears to be closing down operations. Following a take-over by private equity firm, Guru Capital, and a poor financial year, the future of the forex and CFD broker looks uncertain.
Disappointing Financials
Oval X is operated by UK-based, Monecor Limited. In 2021, the first financial year after Guru Capital took over, Monecor reported a pre-tax loss of £9.2 million, citing macroeconomic events. The firm’s net loss was £6.8 million, a significant fall from its £428,000 net profit in the previous year.
Profits tumbled as the broker’s trading revenues fell from £31.7 million to £24.1 million. And while its funding revenues rose by 39% thanks to its professional customers, spread revenues fell by 45% over the same period.
“Business As Usual”
The party line from Oval X is that it is in the process of conducting a strategic review to optimize its business in the face of a challenging economic landscape. And whilst the company hasn’t confirmed that it’s shutting down operations, it has admitted that it is implementing a cost-cutting program. Also on the table is a potential merger or asset sale with another broker.
CEO of Oval Money, Luca Merolla, commented: “The global economy has suffered, and the wider industry experienced a significant reduction in trading volumes in 2022, and we were no exception. As a result, we continue to explore various strategic options.”
Merolla added: “I want to assure our clients that the Oval X trading support services and customer experience is operating on a business-as-usual basis, and we will maintain the standards that our customers have become used to.”
The End Of The Road?
Despite its efforts to reassure users, Oval X currently carries an insolvency risk.
Reductions in headcount alongside other cost-cutting measures and discussions of a possible merger or asset sale mean prospective traders should think twice before depositing funds with the online broker.
Instead, consider the best alternatives to Oval X:
