FXCM Reports Weak Retail Metrics for September

Metrics for the third quarter of 2015 are disappointing when compared to the second quarter of the year.

FXCM Inc. (NYSE:FXCM) has just released certain key customer trading metrics for September 2015 for its retail and institutional foreign exchange business. The report shows that September was weaker than the previous month in terms of retail performance for FXCM, but not as bad as it was for rival NYSE listed brokerage GAIN Capital.

FXCM reports retail customer trading volume of $326 billion in September 2015, 1% lower than August 2015 and 10% lower than September 2014. Average retail customer trading volume per day was $14.8 billion in September 2015, 6% lower than August 2015 and 10% lower than September 2014. There were an average of 564,711 retail customer trades per day in September 2015, 5% lower than August 2015 and 29% higher than September 2014.

On the institutional side of the business, FXCM reports customer trading volume of $47 billion in September 2015, flat from August 2015 and 44% lower than September 2014. Average institutional trading volume per day was $2.1 billion in September 2015, 9% lower than August 2015 and 45% lower than September 2014. There were an average of 29,856 institutional client trades per day in September 2015, 15% lower than August 2015 and 99% higher than September 2014.

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As for the quarterly performance of FXCM, retail customer trading volume for the third quarter 2015 was $972 billion, 3% lower than the second quarter 2015, and 11% higher when compared to the third quarter 2014. Volume from indirect sources was 38% of total retail volume in the third quarter 2015. Institutional customer trading volume for the third quarter 2015 was $131 billion, 22% higher than the second quarter 2015 and 40% lower than the third quarter 2014.

Last week FXCM reported that it still has $203 million in outstanding debt related to the emergency bailout that it received from Leucadia to withstand the crisis. FXCM expects to pay back the balance of their loan to Leucadia during Q1 2016, financed by additional asset sales including their shares in Fastmatch, Lucid Market and V3 Markets.

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