FXCM has just released its July metrics, highlighting uneven Retail Customer Trading Volumes (3.5% growth MoM, -32% decline YoY), coupled with an all-time high of Institutional Trading Volume of $262 billion.
Following an uneven June metrics report, Retail Customer Trading Volume rose in July to $263 billion, up 3.5% MoM from $254 billion in June. Over a yearly timeframe however, these figures appear to be quite weak, falling -32% against July 2013 levels. Moreover, Average Retail Customer Trading Volume came in at $11.4 billion in July 2014, down -6% MoM from June and -33% YoY from June 2013. July also showed an average of 345,589 retail client trades per day, down -1% MoM from June.
However, Institutional Trading Volume again soared for FXCM, and just one month after a swell in volumes, July revealed an all-time high figure of $262 billion – good for a 15.9% jump MoM and 42% growth YoY. In addition, Average Institutional Trading Volume per day was reported at $11.4 billion in in July 2014, up a solid 6% MoM and 43% YoY from July 2013. Finally, an average of 45,223 institutional client trades per day was recorded in July 2014, down -17% MoM from June.
In its second quarter financial results review, FXCM saw a number of significant events impacting its overall business. Its institutional algorithmic solution, Lucid Markets, saw disappointing results since its acquisition twenty-five months ago, Lucid Revenues and EBITDA were at $11.8m and $6.8m respectively, the firm states that Lucid and V3 have both been affected by the tough operating conditions with low market volatility.
FXCM has gradually been rolling out its new CFD trading portal, according to sources close to the matter, the platform was co-developed by FXCM and Digital Look. The multi-asset broker has seen a gradual increase in its CFD business, in the latest findings CFDs represented 26% of the firm’s volumes, a 5% increase from figures reported a quarter earlier. The firm also plans to roll out its equity derivatives offering with single stock CFD instruments.
FXCM has made a number of acquisitions as it enhances its portfolio as a global broking giant, the firm states that it is exploring multiple M&A opportunities as part of its growth strategy, and : “Remains committed to a disciplined acquisition approach.”
However, as several participants in the foreign exchange markets are experiencing some of the toughest trading conditions since the collapse of Lehman Brothers in 2008, FXCM also states : “If environment persists & M&A does not materialize then meaningful cost reductions will be initiated.”