iFOREX has slashed its fiscal 2026 adjusted EBITDA guidance to between half a million and two point five million dollars following a severe trading income decline in July. The London-listed broker reported monthly trading income of roughly seven hundred twenty thousand dollars for July, down seventy-seven percent year-on-year, attributing the collapse to coordinated US-Japan currency intervention on July thirtieth and thirty-first that moved sharply against its net client exposure.
The joint intervention by Japan’s Ministry of Finance and the US Treasury Department reversed the yen’s decline to a four-decade low against the dollar. iFOREX stated the resulting sharp yen appreciation hit the firm adversely based on its positioning. Additionally, the broker faces translation headwinds in Japan where clients fund accounts in yen, meaning currency weakness reduces dollar-equivalent revenue from those positions. Early August performance remained subdued amid low market volatility.
Despite customer acquisition improvements with new clients up forty percent and total deposits rising eight percent year-on-year, revenue per user fell nine percent and failed to offset the income drop. The revised outlook implies second-half adjusted EBITDA ranging from a one point nine million dollar loss to just one hundred thousand dollars in profit, assuming first-half estimates hold at two point four million dollars. iFOREX previously reported a three point two million dollar net loss for fiscal 2025.
FXnCO Insight
This episode underscores how concentrated exposure to specific currency pairs and client-side positioning can devastate broker profitability during unexpected intervention events, highlighting the critical importance of dynamic risk management frameworks beyond standard client acquisition metrics.
Source: Finance Magnates