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 […]

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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.

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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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7 Comments

  1. Asaf

    The number of accounts seem very low to me and my guess is that they are only measuring FXCM-US and only the ones that are not on a micro accounts because FXCM-Micro is a separate entity.

    — Asaf.

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  2. Fxming

    Wow. And you know the micro accts will be even worse. I guess there’s a reason my trading seems to ‘work’ better with IBFX.

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  3. Asaf

    This is very interesting.

    I hope that brokers now will start to compete on the % of profitable traders they have which is good for the industry.

    — Asaf.

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  4. Robbix

    So are more than 5% written in the books …

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  5. Michael Greenberg

    it’s definitely only FXCM LLC (FXCM US) – that’s what CFTC requires i believe. interesting point on FXCM-Micro, i’ll ask.

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  6. Michael Greenberg

    both of them aren’t that exciting on the winning part, let’s wait for all other numbers. from what i know you’ll see big differences between brokers.

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  7. Michael Greenberg

    i guess that’s cftc’s intention, however reality being what it is over time brokers will learn how to tweak these numbers and make them look better than what they are

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