Leading FX broker, FXCM reports monthly trading performance for September. The broker saw volumes decline by 7% in the retail sector and 14% lower volumes in the institutional segment from figures reported a month earlier.
FXCM, a multi-asset specialist FX broker dealer has reported operating metrics for the month of September. Trading volumes dropped in what is expected to be the peak run-up to the end of the year. The broker saw volumes decline on both the retail and institutional segments.
September performance
Retail Trading Metrics
Retail customer trading volume of $285 billion in September 2013, 7% lower than August 2013 and 6% lower than September 2012. Volume from indirect sources was 46% of total retail volume(1) in the third quarter 2013.
Retail customer trading volume(1) for the third quarter 2013 was $980 billion, 15% lower than the second quarter 2013, and 14% higher than the third quarter 2012.
Average retail customer trading volume(1) per day of $13.6 billion in September 2013, 3% lower than August 2013 and 11% lower than September 2012.
An average of 382,657 retail customer trades per day in September 2013, 7% lower than August 2013 and 5% higher than September 2012.
Tradable accounts(2) of 188,988 as of September 30, 2013, an increase of 3,865 or 2% from August 2013, and a decrease of 13,406 or 7%, from September 2012. , On September 27, 2013, FXCM assumed approximately 2,640 tradable accounts from Alpari US LLC.
Institutional Trading Metrics
Institutional customer trading volume of $181 billion in September 2013, 14% lower than August 2013 and 293% higher than September 2012.
Institutional customer trading volume(1) for the third quarter 2013 was $576 billion, 3% higher than the second quarter 2013 and 269% higher than the third quarter 2012.
Average institutional trading volume(1) per day of $8.6 billion in September 2013, 9% lower than August 2013 and 274% higher than September 2012.
An average of 38,362 institutional client trades per day in September 2013, 33% lower than August 2013 and 574% higher than September 2012.
Across the board volumes have suffered during September. Japan, the most established market for margin FX saw its largest players report declining volumes in September, lower from a month earlier. Traders have been on the sidelines after the Fed tapering dilemma hasn't found clear direction, the VIX index, which measures Volatility, was stable during the month.
A spokesperson for the firm commented about the results in a statement to Forex Magnates: "September was less volatile, and lower volatility results in lower trading. FXCM's strategy for 2013 was and still is prepared for periods of this type of muted market activity."
Market analysts have been backing the firms share price which spiked 2.25% on Monday when 2.17 million shares were traded. The broker is currently trading 1% higher than today's open. According to data on the NASDAQ website, analysts from Barclays Capital, J.P. Morgan, Raymond James and UBS are recommending a strong buy for FXCM. Shareholders at FXCM will be pleased with the current share price trading in the upper end of its 52 week high of 19.97. Its low during the last 12 months was 8.53.
FXCM has recently been carrying out strategic acquisitions in a bid to dominate the sector. Most recently the firm scored twice in the past weeks with the acquisitions of Infinium Note and Faros Trading.
With the firm clearly in pole position the key questions are what's next? With the current selection of firms, FXCM is bridging the gap between retail and institutional offerings. As the retail FX has witnessed a spree of M&A activity, Forex Magnates expects further consolidation in the FX markets in 2014. This comes on the back of lower volatility and rising operating costs.
(1) Volume that FXCM customers traded in period translated into US dollars.
FXCM, a multi-asset specialist FX broker dealer has reported operating metrics for the month of September. Trading volumes dropped in what is expected to be the peak run-up to the end of the year. The broker saw volumes decline on both the retail and institutional segments.
September performance
Retail Trading Metrics
Retail customer trading volume of $285 billion in September 2013, 7% lower than August 2013 and 6% lower than September 2012. Volume from indirect sources was 46% of total retail volume(1) in the third quarter 2013.
Retail customer trading volume(1) for the third quarter 2013 was $980 billion, 15% lower than the second quarter 2013, and 14% higher than the third quarter 2012.
Average retail customer trading volume(1) per day of $13.6 billion in September 2013, 3% lower than August 2013 and 11% lower than September 2012.
An average of 382,657 retail customer trades per day in September 2013, 7% lower than August 2013 and 5% higher than September 2012.
Tradable accounts(2) of 188,988 as of September 30, 2013, an increase of 3,865 or 2% from August 2013, and a decrease of 13,406 or 7%, from September 2012. , On September 27, 2013, FXCM assumed approximately 2,640 tradable accounts from Alpari US LLC.
Institutional Trading Metrics
Institutional customer trading volume of $181 billion in September 2013, 14% lower than August 2013 and 293% higher than September 2012.
Institutional customer trading volume(1) for the third quarter 2013 was $576 billion, 3% higher than the second quarter 2013 and 269% higher than the third quarter 2012.
Average institutional trading volume(1) per day of $8.6 billion in September 2013, 9% lower than August 2013 and 274% higher than September 2012.
An average of 38,362 institutional client trades per day in September 2013, 33% lower than August 2013 and 574% higher than September 2012.
Across the board volumes have suffered during September. Japan, the most established market for margin FX saw its largest players report declining volumes in September, lower from a month earlier. Traders have been on the sidelines after the Fed tapering dilemma hasn't found clear direction, the VIX index, which measures Volatility, was stable during the month.
A spokesperson for the firm commented about the results in a statement to Forex Magnates: "September was less volatile, and lower volatility results in lower trading. FXCM's strategy for 2013 was and still is prepared for periods of this type of muted market activity."
Market analysts have been backing the firms share price which spiked 2.25% on Monday when 2.17 million shares were traded. The broker is currently trading 1% higher than today's open. According to data on the NASDAQ website, analysts from Barclays Capital, J.P. Morgan, Raymond James and UBS are recommending a strong buy for FXCM. Shareholders at FXCM will be pleased with the current share price trading in the upper end of its 52 week high of 19.97. Its low during the last 12 months was 8.53.
FXCM has recently been carrying out strategic acquisitions in a bid to dominate the sector. Most recently the firm scored twice in the past weeks with the acquisitions of Infinium Note and Faros Trading.
With the firm clearly in pole position the key questions are what's next? With the current selection of firms, FXCM is bridging the gap between retail and institutional offerings. As the retail FX has witnessed a spree of M&A activity, Forex Magnates expects further consolidation in the FX markets in 2014. This comes on the back of lower volatility and rising operating costs.
(1) Volume that FXCM customers traded in period translated into US dollars.
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