FXCM Sees Retail Volumes Hold Tight Consolidation in April

FXCM's retail and institutional volumes could not get back on track in April.

FXCM (NYSE:FXCM) has just released its latest tranche of volumes and metrics, outlining its performance over not just the month of April 2016 but also for Q1 2016. In terms of its trading volumes, the US broker averted any large changes in its business, instead clinging to a narrow consolidation in April, per a recent FXCM statement.

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In terms of retail trading metrics, during April 2016, FXCM’s monthly volumes came in at $287.0 billion, falling less than -1.0% MoM from $291 billion in March 2016. While the fall was muted, it does reflect three straight months of diminishing retail volumes at FXCM, reflective of a decline of -13.2% since peaking at $331 billion back in January 2016.

The latest retail figures for April 2016 were also lower YoY when compared to 2015, as April 2015’s total retail volumes of $306 billion correlated to a fall of -6.2% YoY. In addition, FXCM’s average daily volume (ADV) for retail customer trading during April 2016 did manage to rise to $13.7 billion, up 7.9% MoM from $12.7 billion in March 2016, though lower by less than -1.0% YoY against April 2015.

Finally, FXCM also reported a MoM ascension across its retail trades, executing an average of 584,753 retail client trades per day in April 2016, registering a 3.8% MoM increase from 563,123 in March 2016 – this was reinforced by a 15.0% YoY climb from April 2015. By extension, FXCM’s tradeable accounts also came in slightly better during April 2016, reporting 169,168 vs. 167,364 accounts in March 2016, or 1.1% higher MoM.

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Institutional Focus

Looking at FXCM’s institutional customer trading volume, April 2016 saw a total of $75.0 billion, retreating -9.6% MoM from $83.0 billion in March 2016. Despite this pullback, FXCM’s institutional business is a still 83% higher YoY than April 2015, attesting to its recent strong performance in this area during the 2016 year.

Institutional ADV also yielded $3.5 billion during the month ending April 2016, pulling back -2.8% MoM from $3.6 billion in March 2016. Much like its total volumes, FXCM’s institutional ADV was a full 84.0% higher YoY from April 2015.

Q1 Overview

FXCM also reported its Q1 2016 financials, highlighted by US GAAP net revenues from continuing operations of $71.5 million – this compares with the broker’s Q4 2015 revenues in this area which came in at just $67.0 million, indicative of a jump of 6.7% QoQ.

During Q1 2016, FXCM also saw a US GAAP net loss from discontinued operations coming in at $11.5 million or $2.06 per fully diluted share, a sizable improvement from Q4 2015, which saw reported a net loss of $85.7 million or $15.75 per diluted share. Furthermore, FXCM’s adjusted EBITDA during Q1 2016 was disclosed at $10.3 million, helped by a strong combined operating cash position of $235.7 million as well as a regulatory surplus of $107.2 million recently.

Finally, the broker’s GAAP net loss attributable to FXCM from continuing operations yielded $85.7 million or $15.75 per diluted share. The group’s adjusted EBITDA was also reported at $12.6 million in Q4 2015.


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