Do not invest more money than you can afford to lose.
As most large FX brokerage companies are publicly held, we regularly keep track of their market capitalization and compare their stock price performances. Looking at our market cap chart today, we noticed that currently the third-largest forex broker is GMO Click Holdings Inc (TYO:7177), which got ahead of CMC Markets PLC (LON:CMCX).
| FX Broker | Market Cap (in billions of dollars) | Change % | |
| Aug 23, 2016 | Oct 19, 2016 | ||
| 1. IG Group | 4.54 | 3.75 | -17.4 |
| 2. Plus 500 | 1.10 | 0.92 | -16.4 |
| 3. GMO Click | 0.82 | 0.84 | 2.4 |
| 4. CMC Markets | 1.02 | 0.71 | -30.4 |
| 5. Monex Group | 0.71 | 0.64 | -9.8 |
| 6. Gain Capital | 0.31 | 0.27 | -12.9 |
| 7. XTB | 0.34 | 0.21 | -38.2 |
| 8. KVB Kunlun | 0.21 | 0,18 | -14.3 |
| 9. Money Partners Group | 0.16 | 0,16 | N/A |
| 10. Hirose | 0.07 | 0,07 | N/A |
| 11. FXCM | 0.05 | 0.04 | -20 |
At present, the market capitalization of UK forex and spreadbetting broker CMC Markets amounts to GBX 580.91M (USD 0.71 billion), sinking by more than 30% from August. Actually, CMC Markets’ stock price dropped by almost 13% for a single day after the company announced its net income is expected to fall on September the 6, and it and hasn’t recovered ever since.
Meanwhile, GMO Click’s total dollar market value of its shares increased slightly, coming in at JPY 86.68B on Wednesday. This, however, was enough to rate GMO third largest FX broker by market cap.
The GMO Click group consists of the holding company GMO Click Holdings, and its subsidiaries GMO Click Securities and FX Prime by GMO Corp., both based in Japan, Hong Kong-based GMO-Z.com Forex HK and GMO-Z.com Bullion HK, Thailand-based GMO-Z com and London-based GMO-Z.com Trade UK.
CMC Markets was set up back in 1989 and now it runs offices in 14 countries across the globe, focusing on the markets in the UK, Australia, Germany, and Singapore. The broker offers trading in more than 10,000 financial instruments, including forex, shares, indices, commodities and treasuries via its proprietary trading platform Next Generation.
Gain Capital is now bigger than XTB
Yet another change in the market cap ranking of FX brokers since August is the swap of places between X Trade Brokers Dom Maklerski SA (WSE:XTB), a.k.a. XTB, and Gain Capital (NYSE:GCAP). XTB’s total dollar market value of its shares crashed by more than 38% since August, as a result of which it resumes the 7th place – exactly where it entered our market cap chart.
On Tuesday XTB saw its shares reaching their all-time lowest price of PLN 6.57 after it announced disappointing financial and trading results for Q3 2016.
US forex broker Gain Capital (operating the Forex.com brand), on the other hand, recently announced its retail and institutional trading volumes both increased in September 2016 from the preceding month. Nonetheless, the company’s market cap is down by almost 13% from August, coming in at 268.07M.
IG and Plus500 retain top spots
As we can see from the table above, IG Group Holdings PLC (LON:IGG) retains its leading position in terms of market cap with its total dollar market value of shares currently coming in at GBX 3.06B, and Plus500 (LON:PLUS) remains a solid second. In fact, the market cap of both UK companies decreased by more than 15% compared to the figures from August, which comes as no surprise against the background of the GBP fall and Brexit concerns.
