Only a week after releasing its 2023 financials, YCM-Invest revealed that it generated £808,513 in revenue in the first nine months of 2024, which ended on 27 September. The company also turned a profit of £319,478 for the period.
A Profitable Prop Firm
The latest financials for the partial year show that the company’s revenue has already jumped by 147 per cent from 2023, a year when it declined by 57.3 per cent to £327,924. Its strong profitability follows a year with £542,481 in losses.
The key reason for the company’s return to profit after recovering from losses is its reduction in costs. Despite the rise in revenue, its sales costs dropped to £292,078 from £414,345. Administrative costs were also significantly reduced to £196,805 from £453,721 in 2023.
YCM-Invest provides prop trading services exclusively to professional traders. It primarily generates revenue from the spreads and commissions charged to traders on its platform, offering them brokerage services.
The latest Companies House filing also revealed that the platform clears between $5 billion and $8 billion of CFD trades monthly.
“Traders who generate profit for our investors using their trading strategies receive up to 15% of that profit,” the filing stated. “This arrangement makes our brokerage platform an even more attractive option for successful traders, as it allows them to earn more from successful trading.”
“Our strategy is to continue building our base of successful traders while simultaneously growing our AUM, thereby generating profit for both our investors and our traders.”
No Retail Traders
The company emphasised that it does not accept retail clients and exclusively provides prop trading services to professional traders who must meet at least two of the following three criteria:
- Trading statements showing more than 40 significant trades in the last quarter.
- A CV or LinkedIn profile demonstrating at least a year of professional experience in the relevant market.
- Evidence of financial instruments exceeding EUR 500,000.
“YCM-Invest Ltd’s target market is professional traders, asset managers, and hedge fund operators. YCM-Invest Ltd does not onboard or service retail clients,” the company stressed.
YCM-Invest is one of the few prop trading platforms that exclusively onboard professional traders. Hundreds of prop trading platforms cater to retail customers and generate revenue primarily from challenge fees. However, that retail-centric model has proven to be highly lucrative.
As Finance Magnates reported earlier, Czech Republic-based FTMO, one of the oldest prop firms in the retail space, generated $213 million in revenue in 2023. Recently, Alpha Capital Group also revealed it had made “tens of millions” of pounds in revenue over three years of operations.
This article was written by Arnab Shome at www.financemagnates.com.
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