FXCM Sees Retail Volumes Fall in February, Institutional Business Shines

FXCM (NYSE:FXCM) has reported its monthly trading metrics for February 2016, as well as its Q4 2015 financials that closed out a tumultuous year for the US broker.

In terms of Retail Trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term metrics, during February 2016, FXCM’s monthly volumes were reported at $309.0 billion, falling -6.6% MoM from $331 billion in January 2016. The performance is inverted however, especially when measured against its YoY counterpart, with secured a sizable YoY advance of 36.0% from $227.2 billion in February 2015.

Moreover, the average daily volume (ADV) for retail customer trading during February 2016 also fell to just $14.7 billion, -11.0% lower MoM than $16.5 billion in January 2016 and -29.0% lower YoY against February 2015. Finally, FXCM also saw a decline across its trades, having executed an average of 654,287 retail client trades per day in February 2016, which correlated to a -5.1% fall MoM from 689,635 in January 2016, offset by 45.0% YoY from February 2015.

By extension, FXCM’s tradeable accounts came in at 165,287 as of February 29, 2016, notching a slight rise of 2,651 accounts, or 2.0% higher MoM from 162,636 in January 2016.

Institutional Focus

Moving to FXCM’s institutional customer trading volume, February 2016 witnessed a total of $53.0 billion, exploding 47.2% MoM from just $36.0 billion in January 2016, also soaring 18.0% versus February 2015. Institutional ADV came in at $2.5 billion during the month ending February 2016, surging 38.9% MoM from $1.8 billion in January 2016.

Q4 Snapshot

FXCM also reported its Q4 financial metrics, ending December 31 2015, which closed out the year for the broker. In particular, FXCM’s Q4 2015 GAAP revenue from continuing operating expenses came in at $67.0 million. Furthermore, the broker’s GAAP net loss attributable to FXCM from continuing operations yielded $85.7 million or $15.75 per diluted share. The group’s adjusted EBITDA was also reported at $12.6 million in Q4 2015.

Earlier today, FXCM and Leucadia entered into a memorandum of understanding (MOU) to alter the terms of their Amended and Restated Credit Agreement as well as their Amended and Restated Letter Agreement dating back to last January.