FXCM’s retail trading volumes rise steadily, coming in at $281 billion in July

FXCM’s retail trading volumes rise steadily, coming in at $281 billion in July

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US forex broker Forex Capital Markets, aka FXCM (NYSE:FXCM), one of the world’s top three retail forex brokers in terms of largest trading volume and the largest US forex broker, announced today certain key customer trading metrics for July 2016. FXCM reported its retail trading volume came in at $281 billion in July, slightly up from the previous month by 2%, and 11% lower compared to a year earlier. In fact, retail volumes continue the upward trend from June, when the figure was $231.7 billion, representing an increase of 3.7% from May.

In contrast to retail segment, institutional trading volumes posted a decline MoM (by 28%) and an increase YoY (by 11%), coming in at $41 billion in July. Previous month FXCM posted financial information for the second quarter of 2016, which ended with lower retail and higher institutional trading volumes.

July trading metrics also show that average retail daily volume amounted to $13.4 billion, 7% higher than June 2016 and 3% lower than July 2015.

We remind you that after the Swiss Franc spike in 2015, FXCM suffered great losses, which necessitated a loan from National Corporation (NYSE: LUK), that is still outstanding. The remaining principal balance of the loan to be paid currently mounts to $192.5 million, and is expected to be repaid in full in 2017, Leucadia announced on Thursday.

So FXCM’s operations are quite stable, however most of the money the broker is making probably serve to cover its debt, which is anything but favorable: the interest in the first quarter was 16% per annum, in the second quarter it was 17.5% per annum, and in the third quarter it will rise to 19% per annum.

FXCM’s main competitor, Gain Capital, also announced its July trading metrcis: its retail volumes contonue to wane both MoM and YoY.

As a result, FXCM stock prices increased by 6.9% for a single day: on Wednesday it stocks closed at $9.41, and the next day, after the trading metrics were announced, FXCM’s stocks traded for $10.12 apiece at market close.

FXCM or Forex Capital Markets (NYSE:FXCM) is one of the biggest providers of online foreign exchange trading, CFD trading, spread betting and related services on the global market. It is a registered futures commission merchant (FCM) and a retail foreign exchange dealer (RFED) with the US CFTC, and also runs units regulated with the relevant authorities in the UK, Australia, and France.

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