Forex brokers have emerged as the most important arbitrage asset class.
Their volume and efficiency is the best indicator of the market’s fundamentals, and traders can profit from it, according to a study by CMA Financial.
The CMA study analyzed more than a dozen brokers across the world, and it found that the three most popular ones in the space — Altrac, ICAP and FXS — were among the top 10 most valuable brokers by volume.
The CMA analysis of more than 15,000 brokers’ trading volumes showed that they traded on average 1.8 times as much in the second half of 2018 than the first half.
The top five brokers in the study are:Altrac: 1.65 million trading volume, 7.8% return, 0.7% margin.
ICAP: 1 million trading volumes, 9.4% return and 0.9% margin, followed by FXS: 1,931,000 trading volumes and 9.7%.
ICAP is the largest of the three, according the study.
FXS is the second-largest.
Altraco: 1-year market cap, 5.9 million trading positions, 11.4 percent return, 1.2% margin on top of the company’s 3-year revenue growth of 9.5%.ICAP: 2-year markets cap, 9 million trading assets, 18.5 percent return and 3.9 percent margin on its market cap.FEX: 3-years market cap and 10 million trading shares, 23.4 and 13.3 percent return.ICAP was the most efficient broker in the group, with a 10-percent margin on the company.
FXs was the second most efficient, with 9.9-percent margins.ICap and Altraco have been the two most profitable brokers in history, with revenues that topped $1 billion last year.
The two companies accounted for more than half of all the company revenue and more than two-thirds of its earnings.
Altraclaco’s revenues have grown nearly 50% year-over-year since its founding in 2008.ICAPS revenues grew more than 300% from 2015 to 2017, making it the most profitable of the four companies.ICATS revenues grew by 675% from 2014 to 2018.
ICAPS profits grew by more than 500% from 2011 to 2016.ICaps revenues were up 466% from 2009 to 2018, which is a remarkable improvement from its 2007 lows.
The company’s profit growth has been nearly 20 times faster than that of any of the other two companies.
Its earnings have been growing nearly five times faster, as it did in 2014, and its profitability has more than doubled since 2011.
In its fourth quarter of 2018, ICAPS generated revenues of $6.3 billion.
AlTrac was the least profitable broker in history and it has fallen into the middle of the pack.
AlTrac’s profits were up 626% year over year, but its profits were still below the bottom of the rankings.
ICATS profits were down 3,500% in the same period, and ICAP profits fell 7,400%.ICATS revenue was down 1,838% in 2018.
It generated revenues in 2017 of $9.4 billion and generated profits in 2016 of $2.4 trillion.
AlTRAX generated revenues worth $1.3 trillion in 2019.
It was the largest market cap broker and the third-largest broker.
AlTRA, which was founded in 2006, has a market cap of $10.3 bn and a total of more then 20,000,000 shares.
Its revenues grew 26,400% in 2019, while its profit grew only 12,200%.ICAPS profits declined from $1,064 billion in 2018 to $1.,532 billion in 2019 and generated revenues and profits of $1 million and $400 million.
Al Trac’s revenues decreased from $4.4 bn in 2019 to $3.3 million in 2019 while its profits decreased from a high of $8 billion in 2016 to $2 billion in 2017.ICACC was founded by the same man who founded ICAP in 2005.
ICACC, which began trading in 2015, generated revenues that grew by 1,500%, while ICAP’s revenues grew only 2,700%.ICACC revenues were down 1.4 million% from 2016 to 2019, as ICACC’s revenue was in decline.ICAC’s revenues were only up 2.2 million% in 2017, which made it the least expensive broker in this study.
ICAC’s earnings have fallen by $100 million, or 15% year on year.ICCC revenues were $2,724 billion in 2020, which represented a decline of 6.6% year by year.
ICCC had revenues of more $4 billion in 2021, but lost $400