Forex.com Owner's Q2 FY25 FX and CFDs Trading Volumes Rise, but Revenue Fails to Keep Up

StoneX, the parent company of Forex.com and City Index, generated $70.9 million in revenue from FX and contracts for difference (CFDs) trading during the January–March quarter. That marked a 12% drop compared to the same period last year.

However, over the six months from October 2024 to March 2025, FX and CFDs revenue rose 9% to $169.5 million. Still, results point to a notable quarter-on-quarter decline.

Financials released on Thursday also showed that the average daily trading volume (ADV) in FX and CFDs climbed 10% year-on-year to $11.5 billion. But despite higher volumes, revenue per million (RPM) fell 19% to $97.

Retail Remains the Main Contributor

The retail division continued to drive the majority of StoneX’s FX and CFDs business. Operating revenue from this segment reached $63 million in the March quarter, down 13% from the same period last year. Net operating revenue slipped 15% to $55.4 million.

Retail ADV jumped 34%, but RPM fell by the same percentage to $116, highlighting margin pressure despite greater client activity.

StoneX acquired Forex.com and City Index in 2020 when it bought GAIN Capital for $236 million. The move more than doubled its global active retail accounts to 295,000. Today, the platform serves over 400,000 retail accounts worldwide.

In a recent expansion, StoneX launched Forex.com in Singapore after securing a local licence.

Overall Performance Remains Solid

Despite the revenue dip in FX and CFDs, these products still contributed to StoneX’s overall operating revenue of $956 million in the quarter—up 17% year-over-year. After expenses, net operating revenue was $487.3 million. Net income climbed 35% to $71.7 million.

“Over the last several years, though we have benefited from a rising interest rate environment, volatility—a key driver of our business—has been generally muted,” said Sean O’Connor, CEO of StoneX. “Since the beginning of this fiscal year, increased market volatility, combined with strong client acquisition and engagement, has helped offset the decline in short-term interest rates.”

StoneX is also strengthening its futures trading business. The company has signed a definitive agreement to acquire R.J. O’Brien, the oldest futures brokerage in the United States, for $900 million in equity.