YCM-Invest, a UK-regulated proprietary trading firm specializing in services for professional traders, experienced a significant financial setback in 2023. According to its latest filing with Companies House, the firm’s revenue dropped sharply by 57.3%, falling from £767,220 in 2022 to £327,924 last year. Alongside the revenue slump, the firm’s net loss expanded to £542,481, a substantial increase from the £95,384 loss recorded in the previous year.
Exclusive Focus on Professional Traders
YCM-Invest sets itself apart by exclusively catering to professional traders, refusing to accept retail clients. To qualify for its services, traders must meet at least two of the following three criteria:
- Provide trading statements showing over 40 significant trades in the last quarter.
- Present a CV or LinkedIn profile that demonstrates at least one year of professional experience in relevant markets.
- Show evidence of financial instruments exceeding €500,000 in value.
In 2023, YCM-Invest introduced a managed account offering aimed at investors. Under this model, funds are allocated to portfolio managers who leverage the firm’s brokerage services. These portfolio managers can earn up to 15% of the profits they generate for investors, creating an incentive for high-performing traders to join the platform. Additionally, the firm generates income through spreads and commissions on its trading services.
Financial Challenges
Despite these initiatives, YCM-Invest faced mounting financial pressures. The firm’s cost of sales increased, resulting in a gross loss of £86,421, compared to a gross profit of £314,310 in 2022. Administrative expenses, totaling £456,060, further contributed to the overall financial loss.
Comparison with Retail-Focused Prop Firms
While YCM-Invest grapples with these challenges, other firms in the proprietary trading space have thrived. For example, FTMO, a Czech-based firm that primarily caters to retail traders through demo trading services, reported $213 million in revenue for 2023. Unlike retail-focused firms, YCM-Invest operates under the oversight of the UK’s Financial Conduct Authority (FCA) and employs a business model tailored to the needs of seasoned professional traders.
Outlook
The sharp decline in revenue and rising losses underscore the difficulties YCM-Invest faces in competing with retail-focused prop trading firms. However, its regulated status and emphasis on professional clients position it as a unique player in the industry. Whether its new managed account offerings and other strategies will turn its fortunes around remains to be seen.
