FXCM Reports January 2013 Metrics - Significant Spike in Trading Volume

Monday, 11/02/2013 | 21:39 GMT by Michael Greenberg
FXCM Reports January 2013 Metrics - Significant Spike in Trading Volume
FXCM_120x60

The wave of good news from Forex brokers continues as 2013 opens with a bang. After Japan's GMO Click Securities reported the highest ever monthly volume by a forex broker with DMM not far behind, institutional brokers such as EBS too have seen great volume results in January. FXCM always fared better than most other brokers and this month is not an exception as it reported the second best month in its history in terms of volume. In terms of stock price, after spending much of 2012 below $10, shares of FXCM have been rapidly rebounding this year and are near its IPO level highs. While no specific news has been cited in relation to the stock move, the firm appears to be benefiting from a renewed interest in Forex Trading due to the increase in volumes along with an overall rally in equities.

FXCM Two Year Chart

FXCM Two Year Chart

January 2013 Retail Trading Metrics

  • Retail customer trading volume(1) of $363 billion in January 2013, 42% higher than December 2012 and 22% higher than January 2012.
  • Average retail customer trading volume(1) per day of $16.5 billion in January 2013, 22% higher than December 2012 and 22% higher than January 2012. Second highest retail average daily volume in FXCM history
  • An average of 432,647 retail client trades per day in January 2013, 6% higher than December 2012 and 25% higher than January 2012.
  • Tradeable accounts(2) of 189,107 as of January 31, 2013, a decrease of 1,110, or 1% from December 31, 2012, and a decrease of 7,603 or 4%, from January, 2012. Active accounts, accounts which have placed a trade in the past 12 months, increased by 4,081 accounts to 175,011 in January 2013 from December 2012.

January 2013 Institutional Trading Metrics

  • Institutional customer trading volume(1) of $116 billion in January 2013, 45% higher than December 2012 and 6% higher than January 2012.
  • Average institutional trading volume(1) per day of $5.3 billion in January 2013, 25% higher than December 2012 and 6% higher than January 2012.
  • An average of 15,878 institutional client trades per day in January 2013, 40% higher than December 2012 and 26% lower than January 2012.

"Over the last two years, FXCM has invested in expanding our market footprint and revenue capacity during a period where muted market conditions placed significant constraints on growth," said Drew Niv, CEO of FXCM. "In 2013, we are starting to see the impact of those efforts as trading activity grew in all our business segments amid improved market conditions," he continued. "We continue to believe that our scale positions FXCM well whether volatility continues to improve from recent historic lows or returns to levels we experienced last year."

More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company's corporate web site, www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company's corporate web site, www.fxcm.com.

(1) Volume that FXCM customers traded in period translated into US dollars.

(2) An account that has sufficient funds to place a trade in accordance with FXCM trading policies.

FXCM_120x60

The wave of good news from Forex brokers continues as 2013 opens with a bang. After Japan's GMO Click Securities reported the highest ever monthly volume by a forex broker with DMM not far behind, institutional brokers such as EBS too have seen great volume results in January. FXCM always fared better than most other brokers and this month is not an exception as it reported the second best month in its history in terms of volume. In terms of stock price, after spending much of 2012 below $10, shares of FXCM have been rapidly rebounding this year and are near its IPO level highs. While no specific news has been cited in relation to the stock move, the firm appears to be benefiting from a renewed interest in Forex Trading due to the increase in volumes along with an overall rally in equities.

FXCM Two Year Chart

FXCM Two Year Chart

January 2013 Retail Trading Metrics

  • Retail customer trading volume(1) of $363 billion in January 2013, 42% higher than December 2012 and 22% higher than January 2012.
  • Average retail customer trading volume(1) per day of $16.5 billion in January 2013, 22% higher than December 2012 and 22% higher than January 2012. Second highest retail average daily volume in FXCM history
  • An average of 432,647 retail client trades per day in January 2013, 6% higher than December 2012 and 25% higher than January 2012.
  • Tradeable accounts(2) of 189,107 as of January 31, 2013, a decrease of 1,110, or 1% from December 31, 2012, and a decrease of 7,603 or 4%, from January, 2012. Active accounts, accounts which have placed a trade in the past 12 months, increased by 4,081 accounts to 175,011 in January 2013 from December 2012.

January 2013 Institutional Trading Metrics

  • Institutional customer trading volume(1) of $116 billion in January 2013, 45% higher than December 2012 and 6% higher than January 2012.
  • Average institutional trading volume(1) per day of $5.3 billion in January 2013, 25% higher than December 2012 and 6% higher than January 2012.
  • An average of 15,878 institutional client trades per day in January 2013, 40% higher than December 2012 and 26% lower than January 2012.

"Over the last two years, FXCM has invested in expanding our market footprint and revenue capacity during a period where muted market conditions placed significant constraints on growth," said Drew Niv, CEO of FXCM. "In 2013, we are starting to see the impact of those efforts as trading activity grew in all our business segments amid improved market conditions," he continued. "We continue to believe that our scale positions FXCM well whether volatility continues to improve from recent historic lows or returns to levels we experienced last year."

More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company's corporate web site, www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company's corporate web site, www.fxcm.com.

(1) Volume that FXCM customers traded in period translated into US dollars.

(2) An account that has sufficient funds to place a trade in accordance with FXCM trading policies.

About the Author: Michael Greenberg
Michael Greenberg
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About the Author: Michael Greenberg
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