GAIN Capital’s Retail FX Volume Rebounds in October, Lags YoY

The figure snapped a downtrend in recent months, but October’s volumes still lagging behind earlier months.

GAIN Capital Holdings, Inc. (NYSE: GCAP) saw a mild rebound in its aggregated trading volumes for October 2019, which came off multi-month lows it hit in the prior month. However, with trading volatility in the FX space still seemingly hard to come by heading into the end of the year, the largest FX broker in the US failed to best its 2018 equivalent.

In particular, GAIN Capital’s retail clients transacted a total of $171.9 billion in October 2019, up 13 percent month-over-month from $151.5 billion in September 2019. Over a yearly timetable, GAIN’s latest retail OTC volume was sharply lower by 25 percent from $231 billion in October 2018.

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The figure snapped a prolonged downtrend in recent months, but October’s FX volumes reading still lagging behind earlier months this year.

The group’s average daily volumes (ADVs) came in at $7.5 billion in October 2019, up four percent month-over-month from $7.2 billion per day in September 2019. This figure has fallen by one quarter on a yearly basis from $10.1 billion the previous year.

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Meanwhile, active accounts in the retail segment totaled 120,807 in October 2019, which slightly increased on a monthly basis from 118,751 accounts in September 2019. This reading is lower relative to 127,054 in October 2018, shedding five percent year-over-year.

Weak financial results

Finally, futures trading dropped last month to 594,021 contracts, corresponding to a loss of 27 percent from a year earlier when weighed against 814,345 contracts in October 2018.

According to Gain’s most recent financial report, the US-listed broker suffered from lower revenues, which weighed down the broker’s bottom line for the third quarter. However, the latest report shows positive figures across its client engagement on a year-over-year basis.

GAIN’s net revenues for Q3 2019 came in at $66.7 million, constituting a drop of 30 percent compared to $95.5 reported back in the third quarter of 2018. On a quarterly basis, the company revenue was also lower by 11 percent from $75.5 million in the second quarter.

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