GAIN Capital’s FX Volume Resumes Downtrend in April 2019

GAIN Capital Holdings, Inc. (NYSE: GCAP) has just reported its aggregated trading volumes for April 2019. The group’s most recent retail volumes took a step back during the month, compared to ending March on a more positive note.

In particular, GAIN Capital’s retail clients transacted a total of $146 billion in April 2019, retreating 13 percent month-over-month from $169 billion in March 2019. Over a yearly timetable, GAIN’s latest retail OTC volume was sharply lower by over 34 percent from $222 billion in April 2018.

The group’s average daily volumes (ADVs) came in at $6.7 billion in April 2019, down 16.3 percent month-over-month from $8 billion per day in March 2019. This figure was also lower by 37 percent on a yearly basis.

Meanwhile, active accounts in the retail segment totaled 120,515 in April 2019, which slightly decreased on a monthly basis from 120,641 accounts in March 2019. This reading is lower relative to April 2018, shedding nearly 7.9 percent year-over-year.

Weak Financial Results

Finally, futures trading dropped last month to 522,132 contracts, corresponding to a loss of 16 percent month-over-month when weighed against 622,194 contracts in the month prior.

Last month, Gain Capital appointed reported its financial results for the first quarter of 2019 saw a year-on-year decrease. GAIN’s net revenues came in at $38.4 million, constituting a drop of over 60 percent compared to $98.4 million reported back in the January-March quarter of 2018. Over a quarterly basis, the company revenue was also lower from $79.9 million the previous quarter.

In terms of Gain Capital’s bottom line, the quarterly net income from continuing operations saw a net loss of $28.4 million, compared to the $11.9 million profit the company made during the same time period of the previous year.