Institutional Trading Shines as FXCM Posts Record Revenues & Volumes

FXCM has just posted its first quarter financial results. During the quarter, the broker achieved US GAAP net income of

FXCM_120x60FXCM has just posted its first quarter financial results. During the quarter, the broker achieved US GAAP net income of $6.9 million ($0.23/share) on revenues of $122.9 million. The results met analyst expectations. The top line figures were 20% above 2012 levels and a record for the firm. Although Retail revenues dropped slightly from the same period last year, total figures were boosted by FXCM’s Institutional Trading unit. The division recorded $27.56 million in revenues  versus $5.82 million last year. Institutional Trading growth can be attributed the broker’s majority acquisition of Lucid Markets last year.

Institutional trading also led the way in April as FXCM recorded trading volume of $183 billion during the month, which was 78% higher than April 2012, and an all-time record high for the broker. In its retail unit, volumes during the month were $366 billion, which was 14.7% above March’s level and the firm’s third highest total ever.

Discover a trusted gateway to Asian markets!

In addition, in its Q1 presentation slides, FXCM announced that it had signed, Charles Schwab owned Options Xpress as a new white label.  The partnership was expected to go live during Q2 2013.  (more on this news will be covered in FXCM’s post conference call post)

Highlights from their report include:
First Quarter 2013 Highlights:

  • Revenues of $122.9 million, up 20% versus the same period in 2012 and highest in FXCM history
  • US GAAP net income attributable to FXCM Inc. of $6.9 million or $0.23 per fully diluted share up 138% and 44% respectively versus the same period in 2012
  • Adjusted Pro Forma EBITDA of $43.8 million, up 76% versus the same period in 2012
  • Adjusted Pro Forma net income of $17.5 million or $0.23 per fully exchanged, fully diluted share up 40% and 35% respectively versus the same period in 2012

April 2013 Operating Metrics

Retail Trading Metrics

  • Retail customer trading volume(1) of $366 billion in April 2013, third highest in FXCM history and 15% higher than March 2013 and 48% higher than April 2012.
  • Average retail customer trading volume(1) per day of $16.6 billion in April 2013, third highest in FXCM history and 9% higher than March 2013 and 41% higher than April 2012.
  • An average of 498,808 retail client trades per day in April 2013, the highest in FXCM history and 18% higher than March 2013 and 54% higher than April 2012.
  • Tradeable accounts(2) of 196,174 as of April 30, 2013, an increase of 545, or 0.3%, from March 2013, and a decrease of 6,365,or 3%, from April 2012.

Institutional Trading Metrics

Suggested articles

How to Generate Leads Outside of the Box?Go to article >>

  • Institutional customer trading volume(1) of $183 billion in April 2013, the highest in FXCM history and 46% higher than March 2013 and 78% higher than April 2012.
  • Average institutional trading volume(1) per day of $8.3 billion in April 2013, the highest in FXCM history and 38% higher than March 2013 and 69% higher than April 2012.
  • An average of 22,851 institutional client trades per day in April 2013, 27% higher than March 2013 and 68% higher than April 2012.

NEW YORK–(BUSINESS WIRE)– FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended March 31, 2013, revenues of $122.9 million, compared to $102.6 million for the quarter ended March 31, 2012, an increase of 20%. U.S. GAAP net income attributable to FXCM Inc. was $6.9 million for the First Quarter 2013 or $0.23 per diluted share, compared to $2.9 million or $0.16 per diluted share for the First Quarter 2012, an increase of 138% and 44% respectively.

Adjusted Pro Forma EBITDA for the First Quarter 2013 was $43.8 million, compared to $24.9 million for the First Quarter 2012, an increase of 76%. Adjusted Pro Forma Net Income was $17.5 million or $0.23 per share for the First Quarter 2013, compared to $12.5 million or $0.17 per diluted, fully exchanged share for the First Quarter 2012, an increase of 40% and 35% respectively.

“FXCM turned in one of its best quarters with record revenues and our second highest EBITDA ever,” said Drew Niv, Chief Executive Officer. “Having grown our client base so significantly over the past few years, we were well positioned to benefit from the improvement in currency trading conditions that occurred in the first quarter of this year.”

“FXCM today is over four times the size in client equity than it was just five years ago,” he continued.

Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC Units into FXCM Inc. Class A common stock, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity’s tax provision. In addition, Adjusted Pro Forma results eliminate the equity based compensation expense regarding a grant of stock options at the time of FXCM’s initial public offering (“IPO”) in December 2010 as well as certain other non-recurring charges.

FXCM Inc. today announced certain key operating metrics for April 2013 for its retail and institutional foreign exchange businesses.

“April continued the strong trading environment of the First Quarter,” continued Niv. “We are pleased to report record or near-records in most of our key operating metrics.”
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate website, www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate website, www.fxcm.com.

Got a news tip? Let Us Know