Leaked FXCM account profitability report

Friday, 15/10/2010 | 11:07 GMT by Michael Greenberg
Leaked FXCM account profitability report

Just got these numbers below from FXCM's new risk disclosure (not released officially yet). If the numbers are correct this is quite a big surprise for two reasons:

1. FXCM always claims to be NDD and is proud of its agency model, however its traders are less profitable than IBFX's.

2. FXCM only shows about 15,000 accounts in Q3 which is 1/10 of what it typically reports. I always was sure that FXCM has a very significant presence in the US but apparently it's only 10% of its customers base. I wonder then who is the biggest broker in the US? Perhaps it's OANDA or Gain, we'll see this Monday.

[TABLE=6]

What's even more alarming is the that the number of accounts is actually decreasing. I assume that some of them moved overseas due to last year CFTC 's anti-hedging rules, but perhaps some of them were wiped out.

This coming Monday all US brokers will have to disclose this data to new customers so we will be able to better compare accounts profitability and see whether all brokers used same methodology to calculate these numbers.

Just got these numbers below from FXCM's new risk disclosure (not released officially yet). If the numbers are correct this is quite a big surprise for two reasons:

1. FXCM always claims to be NDD and is proud of its agency model, however its traders are less profitable than IBFX's.

2. FXCM only shows about 15,000 accounts in Q3 which is 1/10 of what it typically reports. I always was sure that FXCM has a very significant presence in the US but apparently it's only 10% of its customers base. I wonder then who is the biggest broker in the US? Perhaps it's OANDA or Gain, we'll see this Monday.

[TABLE=6]

What's even more alarming is the that the number of accounts is actually decreasing. I assume that some of them moved overseas due to last year CFTC 's anti-hedging rules, but perhaps some of them were wiped out.

This coming Monday all US brokers will have to disclose this data to new customers so we will be able to better compare accounts profitability and see whether all brokers used same methodology to calculate these numbers.

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Michael Greenberg
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