Admirals (company) explained

Admirals
Type:Public
Industry:Financial services
Predecessors:-->
Successors:-->
Founders:Alexander Tsikhilov
Hq Location City:Tallinn, Estonia
Area Served:worldwide
Key People:Alexander Tsikhilov (CEO and founder)
Services:Electronic trading platform
Forex & CFD Brokerage Services
Num Employees:400+

Admirals (formerly known as Admiral Markets) is a trading platform based in Tallinn, Estonia, providing access to forex, contracts for difference (CFDs) and foreign exchange transactions across various financial markets.[1] [2] Established in 2003 by Alexander Tsikhilov, the company is listed on the Nasdaq Nordic stock exchange and holds 11 licenses in different countries.

History

Admirals was established on the 26th of February, 2003, in Tallinn, Estonia, by a former engineer of Russian origin who had previously owned Admiral Telecom, an internet service provider in Russia.[3] [4] [5] In the early 2000s, Tsikhilov decided to relocate his business to Europe. In 2003, he registered a security and commodity contracts broker Admiral Markets. The company secured a license from the Estonian Financial Supervisory Authority, Finantsinspektsioon, in 2009.[6] [4]

In 2017, Admiral Markets issued public bonds but raised only €1.8 mln of the intended €5 mln.[7] The bonds were listed on Nasdaq Tallinn's Baltic Bond List in January 2018.[4] In 2019, the company received recognition as the Best Forex Company in Estonia from the Global Banking & Finance Awards and formed partnerships with Trading Central, Acuity and Dow Jones & Company to provide an analytics portal for its clients.[8] [9] According to Estonian Postimees, in H1-2020 the group generated net revenues of €9.1 mln, a sharp drop from the €31.6 mln earned in the same period last year. The company's profit of €19.1 mln, meanwhile, turned into a loss of €1.6 mln.[10] The company was awarded ADVFN International Financial Awards in 2021.[11]

In March 2021, Admiral Markets rebranded as Admirals and updated its logo.[12] [13] [14] [15] [16] That same year, it was one of the first major retail brokers to end zero-fee trading policies, introducing commissions on Stock CFDs and ETF CFDs, while also banning penny stocks.[17]

As of 2022, the company operated in 18 countries, and served clients in over 145 countries, including trading licenses in the United Kingdom, Cyprus, and Australia and obtaining licenses in Jordan, South Africa, and Canada. Admirals maintained its core offices in Estonia, Jordan, Cyprus, Malaysia and UK.[18] [19] [20] [21] [22] However, due to the war in Ukraine and subsequent European sanctions, Admirals reduced its workforce in its Minsk office from 150 to 30 employees, despite previously using this office as a key development center.

In the first half of 2023, Admirals reported reported a 51% decrease in revenue and a net loss of €4.8 mln while the operating expenses increased by 24%, marketing expenses decreased 55% and value of trade dropped 4% to €448 billion compared to the same period of 2022. The fall in trading volume occurred against the background of growth in the number of clients (according to the company's statement, by 57%). With €74.2 million in shareholders' equity, the firm's balance sheet comprised approximately 45% of liquid assets.[23] [24] [25] The company withdrew its Estonian license, attributing the decision to the availability of a Cypriot license and a desire to avoid regulatory duplication, though in the past it had cited multiple licenses as an advantage.[26]

In April 2024, following three consecutive semi-annual periods of revenue decline, Admirals suspended onboarding European clients, citing regulatory challenges with CySEC.[27] [28] In H1-2024, the company reported a net loss of €1.2 million, despite a 9% reduction in operating expenses and a slight revenue increase to €22 million compared to H1-2023.[29]

Management

In 2017, Admirals underwent a management restructuring, with Jens Chrzanowski, Victor Gherbovet, and Mindaugas Deksnys joining the board, along with existing board members Sergei Bogatenkov and James Chernikov.[30] In 2018, Stephen Ayme replaced Simon Roberts as the general manager.[31] [32]

By September 2022, the board was down to two members: Sergei Bogatenkov and Andrey Koks, after Chrzanowski's departure.[33] [34] Following a 51% revenue decline in early 2023, the company's founder Alexander Tsikhilov returned as CEO, as of March 2024, the board consists of Tsikhilov, Andrey Koks (CTO/CIO), and Anton Tikhomirov.[35]

Controversies

Since 2017, FCA has reported at least five cases of clone firms and websites pretending to be Admiral Markets.[36] [37] [38] [39] [40] [41]

In March 2020, media outlets reported that Admiral Markets was leaving the Polish market, although the company denied this, stating that its Polish branch was simply undergoing an "affiliation switch."[42] [43] Despite these assurances, the Polish branch closed in March 2021.[44]

In February 2021, Admiral Markets was fined €32,000 by the Estonian regulator Finantsinspektsioon for alleged non-compliance with its investment service obligations.[45] [46] During the crude oil price collapse in April 2020, the company unilaterally changed terms and increased fees for overnight holdings on certain securities without prior client notification, which prompted further fines for transparency issues.[47] [48] [49] The company contested the fine in court, and in 2021, the Harju County Court annulled the decision, a ruling later upheld by the Tallinn Circuit Court.[50] [51] [52]

In February 2022, Admiral was fined by Finantsinspektsioon for errors in mandatory regulatory transaction reporting.[53] Also in 2022, Admiral's founder Tsikhilov publicly criticized the Estonian government's decision to restrict IT workers from Russia and Belarus, claiming it undermined Estonia's competitiveness by creating labor shortages and driving up salaries in the tech sector.[54]

Further reading

Notes and References

  1. Web site: Coinbase трябва да влезе в портфолиото на почти всеки инвеститор. 2021-05-17. Bloomberg. bg.
  2. Web site: Breznik. Ziga. 2021-03-14. Best CFD Trading Platforms UK 2021. 2021-05-17. www.publicfinanceinternational.org. en-US.
  3. Web site: Turuliider Admiral Marketsil offshore-kloon. 2012-11-15. Äripäev . 2024-10-18.
  4. Web site: Admiral Markets AS . Nasdaq Baltics .
  5. Web site: Kolis oma äri Venemaalt Eestisse. Stadnik. Alyona. 2014-11-02. AS Business Day . 2024-10-18 . Estonian.
  6. Web site: Business Day, No. 109, June 2009. 2009-06-09 . Äripäev . 2024-10-18.
  7. Web site: Admiral Markets Plans to Raise €10 Million by Issuing Bonds. Shome. Arnab. 2020-06-22. Finance Magnates . 2024-10-10.
  8. Web site: GLOBAL BANKING & FINANCE AWARDS® – 2019 – Award Winners - Global Banking & Finance Review. 2021-05-17. www.globalbankingandfinance.com. en-GB.
  9. News: Admiral Markets teams up with Trading Central, Acuity and Dow Jones Newswires.
  10. Web site: Admiral Markets First Half Treaon Trearums down as much as threefold. 2021-09-01. Postimees . 2024-10-18.
  11. Web site: ADVFN 2021 International Financial Awards. 2021-05-17. uk.advfn.com.
  12. Web site: 2021-03-04. Admiral Markets rebrands as Admirals. 2021-05-17. FX News Group. en-US.
  13. Web site: Admiral Markets are rebranding to Admirals. 2021-05-17. Admirals. en.
  14. News: Admiral Markets rebrands to Admirals.
  15. News: Interview: Jens Chrzanowski talks about Admiral Markets rebranding and 20 year anniversary.
  16. Web site: Rebranding Of Admiral Markets, What Does It Signify? . 2021-11-21. Toogood. Darren . Island Echo .
  17. Web site: Admiral Markets Ceases Free Stock Trading, Unmatching Industry Race to Zero. Abdel-Qader. Aziz. 2021-02-04. Finance Magnates . 2024-10-18.
  18. Web site: Admirals Europe Ltd (ex Admiral Markets Cyprus Ltd). ΕΛΛΗΝΙΚΑ . 2024-10-18.
  19. Web site: Admirals Acquires CFDS Broker License In South Africa, Sets Up Shop In Cape Town. 2022-06-20. Fathi. Abdelaziz. Finance Feeds .
  20. Web site: Admirals open a regulated subsidiary in Jordan . LeapRate .
  21. Web site: Admiral Marketsi esimese poolaasta tulu vähenes koguni kolm korda . 2021-09-01. Investor Postimees .
  22. Web site: Admiral Markets' Net Trading Income Surges 255% in First Half of 2022. Oladipupo. Solomon. 2022-08-31. Finance Magnates. 2024-10-18.
  23. Web site: Admirals Group revenues collapse 51% in 1H 2023, posts €4.8M loss. Segal. Gerald. 2023-08-31. FXNEWS. 2024-10-03.
  24. Web site: Admirals Group sees Revenues down 41%, €10M loss in 2023. Segal. Gerald. 2024-01-29. FXNEWS. 2024-10-18.
  25. Web site: Admirals Markets Reports EUR 3.9M Loss despite Surge in Active Clients. Kirui. Jared. 2024-02-29. Finance Magnates. 2024-10-18.
  26. Web site: Admirals’ Incoming CEO Alexander Tsikhilov Confirms “Changes in the Composition of Staff”. Shome. Arnab. 2024-02-27. Finance Magnates . 2024-10-18.
  27. Web site: Admirals Suspends New Client Registrations in the EU. Kirui. Jared. 2024-04-04. Finance Magnates. 2024-10-18.
  28. Web site: Admirals Group Cuts Operating Expenses by 9% and Improves Net Loss in H1. Sikder. Tareq. 2024-08-30. Finance Magnates. 2024-10-18.
  29. Web site: Admirals Group sees Revenues recover 10% in H1-2024, loss cut to €1.2M. Segal. Gerald. 2024-08-30. FX News Group . 2024-10-18.
  30. Web site: 2017-05-08. Admiral Markets Adds to its Board with Three New Appointments Finance Magnates. 2021-05-17. Finance Magnates.
  31. Web site: 2017-06-08. Admiral Markets Appoints New General Manager and Compliance Officer Finance Magnates. 2021-05-17. Finance Magnates.
  32. Web site: 2018-07-26. Admiral Markets UK Parts Ways with General Manager Simon Roberts Finance Magnates. 2021-05-17. Finance Magnates.
  33. Web site: Exclusive: Jens Chrzanowski resigns from Admirals, joins XTB . 2022-08-30. Segal. Gerald . FXNewsGroup .
  34. Web site: Admirals Parts Ways With Long-serving Jens Chrzanowski . 2022-08-30. Fathi. Abdelaziz . Finance Feeds .
  35. Web site: Admirals confirms CEO and Cyprus office head management departures. Segal. Gerald. 2024-02-08. FXNEWS. 2024-10-18.
  36. Web site: Admiral Markets (Once Again) Impersonated by Fraudulent Clone, FCA Reports. Chmiel. Damien. 2024-01-04. Finance Magnates. 2024-10-18.
  37. Web site: 2020-11-09. Admiral Markets Warns Clients of Fake AdmiralFxMarkets Website. 2021-05-17. Finance Magnates.
  38. Web site: 2018-11-29. Admiral Markets Warns of Clone Website Finance Magnates. 2021-05-17. Finance Magnates .
  39. Web site: 2020-12-30. Malaysian Watchdog Warns of Admiral Markets Clone Finance Magnates. 2021-05-17. Finance Magnates.
  40. Web site: 2017-08-02. Admiral Markets Ltd (Clone of FCA Authorised firm). 2021-05-17. FCA.
  41. Web site: Admiral Markets Warns Clients Against Fraudulent Clone Website. 2021-05-17. Admirals.
  42. Web site: Raza. Ali. 2020-03-12. Admiral Markets Denies Allegations By Media Over Poland Exit. 2021-05-17. FXDailyReport.Com.
  43. Web site: 2020-03-11. Admiral Markets Denies Media Reports on Poland Exit . 2021-05-17. Finance Magnates .
  44. Web site: Admirals Founder Tsikhilov Talks Rebranding, No-Fee Brokerage. Abdel-Qader. Aziz. 2021-03-05. Finance Magnates. 2024-10-18.
  45. News: ALL EYES ON ESTONIA'S REGULATOR AFTER FINING ADMIRAL MARKETS AS.
  46. Web site: 2021-02-09. Financial authority fines online traders Admiral Markets €32,000. 2024-10-18. ERR.
  47. Web site: Estonian Regulator Slapped €32,000 Fine on Admiral Markets AS. Shome. Arnab. 2021-02-09. Finance Magnates . 2024-10-18.
  48. Web site: Admiral Markets challenges Estonian regulator fine around negative crude prices. Segal. Gerald. 2021-02-23. FX News Group . 2024-10-18.
  49. Web site: Court rejects regulator complaint over Admiral Markets fine annulment. 2021-05-25. EER . 2024-10-18.
  50. Web site: 2021-04-01. Harju County Court annulled the decision of the Finantsinspektsioon (FSA) from 08.02.2021 regarding Admiral Markets AS. 2021-05-17. RIZDEX. en-GB.
  51. Web site: 2021-05-26. Court rejects regulator complaint over Admiral Markets fine annulment. 2024-10-18. ERR. en.
  52. Web site: The Tallinn Circuit Court rejected the appeal of the Financial Supervision Authority and agreed with the order of the Harju County Court to revoke the fine of the Financial Supervision Authority against Admiral Markets AS. 2024-10-19. uk.finance.yahoo.com. en-GB.
  53. Web site: Estonia Regulator Fines Admiral Markets €20,000 for Reporting Errors. Shome. Arnab. 2022-02-23. Finance Magnates . 2024-10-18.
  54. Web site: Глава Admirals: Эстония закрылась от IT-талантов и теряет конкурентоспособность. 2022-05-23. Postimees . Russian . 2024-10-18.
  55. Book: Gregory-Williams. Justine. Trading Chaos: Maximize Profits with Proven Technical Techniques. Williams. Bill M.. 2004-02-27. John Wiley & Sons. 978-0-471-46308-5. en.
  56. Book: Baker. Harold Kent. Financial Behavior: Players, Services, Products, and Markets. Filbeck. Greg. Ricciardi. Victor. 2017. Oxford University Press. 978-0-19-026999-9. en.

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