FXCM reported December 2012 metrics and the results are disappointing with retail and institutional volume down 16% and 11% respectively comparing to the previous month and 11% and 23% comparing to same period last year. While volumes were down, the average number of trades for both retail and institutional was up and so was the number of active retail trading clients. FXCM’s lower December volume especially stands out in light of strong growth of its main competitor for the world’s largest broker crown – Japan’s GMO Click Securities which reported $385 billion in volume for the same period. GMO’s surge in volume is mainly attributed to high Yen volatility in the past few months as all of its clients are based in Japan.
NEW YORK–(BUSINESS WIRE)– FXCM Inc. (NYSE: FXCM) today announced certain key operating metrics for December 2012 for its retail and institutional foreign exchange business.
December 2012 Retail Trading Metrics
- Retail customer trading volume(1) of $257 billion in December 2012, 16% lower than November 2012 and 11% lower than December 2011. Volume from indirect sources was 47% of total retail volume(1) in the fourth quarter 2012. Retail customer trading volume(1) for the fourth quarter 2012 was $886 billion, 3% higher than the third quarter 2012, and 9% lower than the fourth quarter 2011. Retail customer trading volume(1) for full year 2012 was $3.6 trillion, 5% lower than 2011.
- Average retail customer trading volume(1) per day of $13.5 billion in December 2012, 3% lower than November 2012 and 3% higher than December 2011.
- An average of 409,875 retail client trades per day in December 2012, 16% higher than November 2012 and 15% higher than December 2011.
- Tradeable accounts(2) of 190,217 as of December 31, 2012, a decrease of 13,278, or 7% from November 30, 2012, and an decrease of 4,389, or 2%, from December 31, 2011. In December, FXCM charged an account dormancy fee on certain accounts that had been inactive over one year, resulting in the decline in tradeable accounts when compared to November 2012. Active accounts, accounts which have placed a trade in the past 12 months, increased by 418 accounts to 170,930 in December 2012 from November 2012.
December 2012 Institutional Trading Metrics
- Institutional customer trading volume(1) of $80 billion in December 2012, 11% lower than November 2012 and 23% lower than December 2011.
- Average institutional trading volume(1) per day of $4.2billion in December 2012, 3% higher than November 2012 and 11% lower than December 2011.
- An average of 11,313 institutional client trades per day in December 2012, 15% higher than November 2012 and 35% lower than December 2011.
“We are pleased with how we have weathered muted foreign exchange markets in 2012 with our overall retail volumes decreasing only 5% to $3.6 trillion despite a 23% decline in average daily volatility to multi-year lows, as measured by the CVIX(3),” said Drew Niv, President and Chief Executive Officer. “In particular, in 2012 we were very successful in attracting larger customer accounts and while its positive effect on our trading volumes was offset by the unfavorable market environment, it positions us well for the future.”
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“While still early, 2013 has started strong and we look forward to our growth initiatives gaining traction this year, even if market conditions do not improve” he continued.
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate web site, www.fxcm.com.
This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate web site, www.fxcm.com.
(1) Volume that FXCM customers traded in period translated into US dollars.
(2) An account that has sufficient funds to place a trade in accordance with FXCM trading policies.
(3) Three month CVIX as reported by www.dailyfx.com.