Retail FX Insight: Volatility Squeeze and Regulatory Risks Persist as iFOREX Eyes IPO

Recent financial disclosures from the retail brokerage sector have shed light on the broader challenges facing currency and CFD providers, characterized by dampened market volatility and an increasingly complex regulatory landscape in Asian markets.

Valuation Reflects Sector Sentiment

iFOREX, a Cyprus and BVI-licensed broker, has signaled a strategic move to list publicly on 25 February 2025, targeting a valuation of approximately £43.3 million. The prospectus implies a valuation metric of roughly 1.1x revenue, a conservative figure that underscores the current caution within the industry.

While the group stabilized with $13.5 million in revenue for Q4 2025, annual revenue figures dipped to $48.8 million, down from $50.1 million in 2024. The data points to low market volatility as a primary dampener.

Key Financial Metrics

• Listing Date: 25 February 2025
• Target Valuation: £43.3 million
• 2025 Annual Revenue: $48.8 million
• Residual Net Exposure (2026): $30.7 million

Regulatory Headwinds

A significant portion of revenue is derived from East Asia and India, jurisdictions where the broker operates without local licenses. Japan remains the top revenue generator, contributing $10.6 million in H1 2025.

To mitigate risks associated with unregulated flows, proceeds from the IPO are earmarked for securing licenses in UK, Australia, and the UAE.

Gold Rally Exposure

Beyond currencies, the sector's risk management strategies are being tested. The broker noted a reduction in risk exposure to the one-sided rally in gold. As of early 2026, residual net exposure stood at roughly $30.7 million.