FXCM February retail volumes disintegrate to $267 billion down 41% MoM


FXCM Inc (NYSE:FXCM) today announced certain key operating metrics for February 2015 for its retail and institutional FX businesses. Volumes were way down in February due to the fallout from the Swissy spike which consequently led to the global FX trading provider to take a bailout financing deal from Leucadia to continue operations. The deal allowed the company to meet regulatory capital requirements, which was reported extensively on here at LeapRate. Retail volumes had been in the $400-500 billion per month range since the summer/fall of 2014, but in February just $267 billion. Moreover, institutional volumes had been in the $250-400 billion range, in February just $162 billion.

It’s noteworthy that rival Gain Capital’s volumes were down 20%-ish in February in both retail and institutional, so the steep volume drop of 40% could be seen as a troublesome sign for investors of FXCM. However, we believe investors should continue to monitor future volume reports to see if the positive or negative trends coming from FXCM operating metrics fall in line with broader industry results. With it’s still wildly recognizable name brand, FXCM should do everything it can to reassure retained clients and prospective traders on it’s platforms that all risk mitigation measures have been reinforced and move on from the event. One thing the firm can not afford is for skittish clients to jump ship to another broker.

To view the latest volume chart and full February monthly activities see below:

FXCM February 2015 Operating Metrics

Retail Trading Metrics

  • Retail customer trading volume of $267 billion in February 2015, 41% lower than January 2015 and 12% lower than February 2014.
  • Average retail customer trading volume per day of $13.3 billion in February 2015, 38% lower than January 2015 and 13% lower than February 2014.
  • An average of 513,931 retail client trades per day in February 2015, 22% lower than January 2015 and 28% higher than February 2014.
  • Tradeable accounts of 222,719 as of February 28, 2015, a decrease of 360, or 0.2%, from January 2015, and an increase of 31,997,or 17%, from February 2014.
fxcmfeb15
Chart showing February’s steep drop in volume from the fall months in which FXCM was clearly picking up momentum along with the broader jump in FX market volatility before the January CHF spike set-back which showed itself today in FXCM’s just released operating reports. [Click for larger chart]

 

Institutional Trading Metrics

  • Institutional customer trading volume of $162 billion in February 2015, 36% lower than January 2015 and unchanged from February 2014.
  • Average institutional trading volume per day of $8.1 billion in February 2015, 33% lower than January 2015 and unchanged from February 2014.
  • An average of 31,242 institutional client trades per day in February 2015, 13% lower than January 2015 and 11% lower than February 2014.

More information, including historical results can be found on the FXCM corporate website by clicking here.

Related News

arrow

FXCM February retail volumes disintegrate to $267 billion down 41% MoM

19

Send this to a friend