GAIN Capital Share Ticks Down as Retail Volumes Drop 14%

GAIN Capital’s retail clients transacted a total of $151.5 billion in September compared with $176 billion in August.

GAIN Capital Holdings, Inc. (NYSE: GCAP) has just reported its aggregated trading volumes for September 2019. The group’s most recent retail volumes took a step back during the month, compared to ending August on a more positive note.

In particular, GAIN Capital’s retail clients transacted a total of $151.5 billion in September 2019, retreating 14 percent month-over-month from $176 billion in August 2019. Over a yearly timetable, GAIN’s latest retail OTC volume was slightly higher by nearly 1.3 percent from $149.6 billion in September 2018.

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The group’s average daily volumes (ADVs) came in at $7.2 billion in September 2019, down ten percent month-over-month from $7.5 billion per day in August 2019. This figure was also lower by four percent on a yearly basis.

Meanwhile, active accounts in the retail segment totaled 118,751 in September 2019, which slightly increased on a monthly basis from 117,103 accounts in August 2019. This reading is lower relative to 129,182 in September 2018, shedding over eight percent year-over-year.

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Weak financial results

Finally, futures trading dropped last month to 603,382 contracts, corresponding to a loss of 25 percent from a month earlier when weighed against 797,472 contracts in August.

Shares of GAIN Capital continue to hover just above monthly lows. As of writing, the stock was down one percent at the market open, trading at $4.89 per share. However, the US-listed broker’s stock is still well supported above its all-time low hit earlier in June at $3.78 per share.

Gain Capital’s quarterly net income from continuing operations was only $0.9 million in Q2, or $0.02 per share, compared to $6.8 million in the year before and a net loss of $28.4 million in the Q1 2019.

Last week, Gain parted ways with the head of its retail business, Samantha Roady, who had been with the company since 1999. CEO Glenn Stevens took over Roady’s responsibilities, including day to day operations at its two key brands FOREX.com and City Index.

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