FXCM: institutional volumes hit all-time low, retail volumes reach 18-mo low

FXCM: institutional volumes hit all-time low, retail volumes reach 18-mo low


The largest US forex broker

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US forex giant Forex Capital Markets (FXCM) reported on Monday its trading volume from institutional clients reached in August 2016 an all-time lowest, while retail trading volume was the lowest since March 2015.

The broker’s trading volume from operations stood at $270 billion in August 2016, which represents a decrease of 4% from the previous month and a drop of 18% over the year. On average, last month’s the retail trading volume was $11.7 billion per day, posting a double-digit decline both on a monthly and annual basis.

In the institutional segment, the broker generated a trading volume of $26 billion in August, which is down by a 37% from the previous month and45% below the value reported a year earlier. The average daily volume was $1.1 billion, which is also down by a double digit bothe on the month and over the year.

Last mobth, the broker’s retail clients operated 173,448 tradable accounts (such with enough funds in them to place a trade) and 175,757 active accounts, which is slightly below those in the previous month or in August 2015. No such information was provided for institutional clients.

Following are more details about FXCM’s monthly trading metrics since the beginning of 2016:

FXCM’s trading metrics are in line with those of the rest of the market participants. Brokers that have published such data saw in August their lowest trading volumes in months, regardless of their main region of operation. FXCM’s main competitor, Gain Capital, also reported for last month worsened metrics—a trading volume of $191.9 billion in the retail segment and $150.1 billion from institutional clients.

FXCM is a registered futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED) with the US Commodity Futures Trading Commission (CFTC). It has units registered and regulated with the relevant authorities in the US, the UK, Australia, and France. The broker offers forex, contracts for difference (CFDs), and spread betting services.

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