FXCM Revenues Increase 3% YoY during the Third Quarter

One of the world's most established providers of financial derivatives trading to retail and institutional investors, FXCM, has reported its third quarter earnings data. Listed provider, FXCM, has seen revenues increase during the quarter by 3%. The news comes on the back of strong trading volumes data as reported by the firm in its September and October monthly metrics.

The firm's third quarter earnings bring a breeze of positivity to the firm after a difficult second quarter. During the three months of July to September, the firm saw revenues of $116.1 million, a 3% increase from figures reported a year earlier of $113.2 million. In addition, the firm noted its U.S. GAAP net income, that was attributable to FXCM Inc., which was $2.4 million for the third quarter 2014 or $0.05 per diluted share, compared to U.S. GAAP net loss of $5.1 million or $0.15 per diluted share for the third quarter 2013.

The firm also witnessed a rise in client equity, which reached, $1.33 billion, up 12% year-to-date and up 2% from June 30, 2014.

“At the beginning of this quarter, Volatility in the currency markets hit all-time lows but conditions notably improved in September,” said Drew Niv, Chief Executive Officer in a statement.

The latter month of the third quarter, September, brought a much needed boost for financial institutions operating in the capital and financial markets. A spree of activities, including the ECB and Scottish referendum led investors to take heed of price volatility, thus impacting trading volumes.

In its notification, FXCM also reported its earnings data for the first nine months of the year. It stated that during the nine months ended September 30, 2014, U.S. GAAP revenues were $329.1 million, compared to $376.2 million for the nine months ended September 30, 2013, a decrease of 13%. U.S. GAAP net income attributable to FXCM Inc. was $1.4 million for the nine months ended September 30, 2014 or $0.03 per diluted share, compared to U.S. GAAP net income of $11.9 million or $0.37 per diluted share for the nine months ended September 30, 2013, a decrease of 88% and 92% respectively.

“With our client equity increasing by 12% year-to-date to over $1.3 billion and with overwhelming positive feedback from clients on our new retail Forex pricing model which we recently announced,” continued Niv, “We believe we are well positioned for the future even if trading conditions were to moderate.”

FXCM also reported its October volumetric data across its two key retail and institutional segments, thus seeing another strong month of activity triggered by event-driven market behavior, average daily trading volumes in its retail segment reaching $22.1 billion.

“The improvement continued into October and we are pleased to announce that October is our second consecutive month of record retail and institutional volumes," added the firm's CEO.

The news comes as no surprise to participants as industry peers, including FXCM's rival, GAIN Capital also reported its third quarter earnings. The broker-dealer saw record net revenue of $103.7 million, this highlighting the success of its GFT acquisition.