Protractions Continue With GAIN Capital's 9.6% Retail Volume Decrease During November

Today, GAIN Capital released its monthly metrics for November 2013, which display a downturn across the board in total trading volumes compared with October 2013.

The company completed the month of November with a retail OTC trading volume of $168.3 billion, which although is still 59% ahead of the same period during last year's unusually low trading activity, represents a decrease of 9.6% when compared with last month.

Volume Slowdown Heads Into Third Month

Overall, the entire industry, with only a few exceptions, has experienced something of a complete reversal of fortunes which were bestowed upon a majority of retail FX firms worldwide during the first six months of the year, in which a protraction began to emerge, and as November's volume releases come to publication, appears to be continuing.

Whereas GAIN Capital's retail FX division generated a significant increase in revenues during October, the company's institutional business followed the downward trend experienced by many other firms.

Institutional Division Increases Volume By 47.3%

In November, however, it was the company's institutional division which outperformed last month's figures, going some way toward restoring October's low average daily volumes, with November's total Institutional Trading Institutional Trading Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance compa Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance compa Read this Term volumes standing at $428.6 billion, an increase of 47.3% from October 2013, and an increase of 153.5% from November 2012.

Average daily institutional volume of $20.4 billion, an increase of 61.3% from October 2013, and an increase of 165.6% from October 2012.

With GAIN Capital's retail FX division's average daily retail OTC trading volume for November this year standing at $8.0 billion, the company has experienced a decrease of 1.0% from last month and an increase of 66.9% from the average daily volumes in November 2012.

Futures Daily Average Revenue Trades (DARTS) amounted to 15,055, which is a decrease of 4.9% from October 2013 and an increase of 10.8% from November 2012, and the company completed the month of November with a total of 133,096 funded accounts, which despite the decrease in volumes, represents an increase of 0.5% from October 2013, and an increase of 63.3% from November 2012.

Comparative to GAIN Capital's volumes for October, a complete U-turn occurred in November, with the institutional division having recovered lost ground, and the retail business having taken the direction which is congruent to that of many industry participants worldwide.