CEU Electronic Theses and Dissertations, 2021
| Author | Kassymzhanov, Iliyas |
|---|---|
| Title | Profitability Analysis of the Brokerage Industry in 2018-2020 |
| Summary | The main purpose of this analysis was to identify the main sources of profitability in the brokerage industry, which can be used to improve the scoring system metrics of the brokers and provide customers with more detailed information regarding the revenue structure. The overall impact of each type of revenue on company’s profitability allows to evaluate and forecast the potential changes that might be experienced by the brokers’ profits as a result of economic events or policy implementation. The study looks separately at the US, UK/Europe and CFD market in order to discover the key revenue sources for each market and find how they followed major economic trends during the last 3 years. The effect of operating costs and interest expenses is also analysed for their recent developments compared to revenue sources. At the end, the cross-market comparison was conducted to see the differences between the effect of certain profitability drivers based on their geographic location and primary business line. Overall, the industry in the 2020 has shown a considerable progression, which was partially diminished by the application of new trading policies a year earlier. Moreover, the influence of the interest income varies significantly by market with almost no effect on the CFD brokers. Finally, the operating expenses of CFD and UK/Europe based brokers have demonstrated a higher growth rate due to their continuous expansion and advertising and marketing promotions. |
| Supervisor | N/A |
| Department | Economics MSc |
| Full text | https://www.etd.ceu.edu/2021/kassymzhanov_iliyas.pdf |
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