FXCM shares respond well to Q2 results and July volumes

FXCM July Forex volumes remain steady, unlike the double-digit declines we’ve seen at the Forex ECNs.

Leading retail FX firm FXCM, the world’s largest online FX broker (and a member of LeapRate’s Approved List of global regulated forex brokerage firms), announced its July trading activity levels as well as Q2-2012 results, with both impressing. July volumes totaled $573 billion at FXCM — its third best month ever. Retail volumes came in at $388 billion, and institutional volumes at $185 billion (see chart below).

FXCM’s July volume metrics confirm our earlier statement, that the ‘summer slowdown’ normally seen in the forex trading world has not really affected retail forex trading as volatility remains high, although institutional forex trading has dropped off significantly, will all the Forex ECNs reporting double digit percent volume declines in July.

Investors cheered FXCM’s July volume results and Q2 financial results (see below), sending FXCM shares (NYSE:FXCM) up about 3% in early NYSE trading. FXCM stock actually set an all-time high intraday of $17.49 during early Wednesday trading.

On the financial side of things, FXCM reported for Q2:

  • its best-ever quarterly revenues at $140.1 million, up 14% from Q1 and up 52% from last year,
  • EBITDA of $54.5 million, second best ever quarter in that category for FXCM, up 24% from Q1,
  • Net income of $23.3 million, up 33% from Q1.

Looking forward, FXCM now has $374 million in cash and $155 million of an undrawn credit facility, leaving FXCM with plenty of dry powder to pursue acquisitions.

For the complete FXCM Q2 results release click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.



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