Leading retail forex broker FXCM (NYSE:FXCM) threw some very mixed-message numbers at the forex world today, with the announcement of their July trading volume metrics (not bad) and their Q2 financial results (not good).
On the plus-side, FXCM reported higher July retail FX volumes, at $263 billion 4% above June, and record institutional volumes of $262 billion – their previous best was $226 billion in June. Not bad, for what is normally a slow summer month and which so far seems to have been a down month for most other FX brokers.
But the financial picture painted by FXCM’s Q2 results are not pretty, indicating shrinking margins and lower activity. FXCM saw overall Revenues drop below $100 million for the first time since 2012, dropping FXCM to a net loss of $1.5 million in Q2, on EBITDA of just $13 million.
These are clearly belt-tightening times for Retail Forex brokers, dealing with low volatility and more comprtition.
For the complete FXCM press release click here.