In contrast to some Japanese foreign exchange brokers, who have had a dismal October, FXCM Inc (NYSE:FXCM) has reported a solid month when it comes to retail trading volumes. The brokerage has reported that retail trading volumes in October have grown 3 per cent on a monthly basis, totaling $335 billion in October 2015.
The figure is lower by 25 percent when compared to October last year, however at the time the business of FXCM Inc included Japanese and Hong Kong- based units which the company sold off to Rakuten Securities earlier this year.
Institutional trading volumes have dropped by 28 per cent on a monthly basis to $34 billion in October, which is also lower by 63 per cent when compared to the same month in 2014.
The average daily volumes (ADV) for the retail segment was $15.2 billion which is 3 per cent higher than in September 2015 and 22 per cent lower than October last year. During the same period the number of client trades declined to 513,724, which is lower by 9 per cent than in September 2015.
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FXCM Inc also reported that the number of active accounts decreased by 1 per cent when compared to September 2015, standing at 178,273. At the same time this figure is higher than that of a year ago by 17,222, or 11 per cent. With the brokerage introducing a new type of mini account for clients outside of the U.S., the growth in active traders could be the key to higher revenues going forward.
Tradeable accounts totaled 161,085 which is higher by 735, or half a percentage point. The figure is also lower by 16,891 then compared to October last year.
Looking in more detail at the institutional trading metrics, FXCM Inc reported that ADV in the segment declined 24 per cent when compared to last month and by 59 per cent when compared to October 2014.
The total number of trades in the segment declined by 4 per cent to 28,590. This figure is more than double of last years.
Earlier today, Finance Magnates reported that FXCM Inc is on track to repay its loan to Leucadia National by the end of the first quarter of 2016, after a derivative gain of $137.6 million was revealed in the third quarter earnings report.