Gain Capital ( revenues and profits soar in Q2

… and these don’t yet include the results of GFT, as the Gain acquisition of GFT has not yet closed.

Forex broker Gain Capital, which operates the retail and institutional Gain GTX brands, reported Q2 results which were simply ‘out of the park’. Gain reported its best ever quarter for revenues, EBITDA, and net profit. Gain’s Q2 revenues, at $73 million, were up 47% over Q1 — and Q1 was a good quarter for Gain Capital.

We should remind our readers that these results do not include the metrics of GFT, which Gain Capital agreed to acquire in April. That acquisition has not yet closed, and Gain Capital couldn’t give any specific update as to when that deal might close.

One more observation from Gain Capital’s Q2 — while Gain did have a great quarter for forex volumes, which we’ve already reported on, a lot of the leap forward in Gain’s financial results was due to increased margins. As per the chart below, Gain earned about 2.5 pips per round-trip trade during Q2 from retail clients, versus just 1.5-1.6 pips the previous two quarters. Similarly, margins from institutional trading at Gain GTX were up to 0.27 pips from 0.24 pips in Q1.

Gain’s increased margins highlights the power of market making in volatile markets.

For the complete Gain Capital Q2 results announcement click here.

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

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