Brokers News

FXCM Sees 22% Jump in Revenues in 9-mo 2013

Nov 07 2013
By Maria Nikolova , Forexbrokerz.com Find me on Google+

FXCM, the major US Forex broker, has just announced its financial results for the first nine months of the year, with the figures showing a steep rise in revenues against the equivalent period a year earlier.

Net revenues for the nine-month period until the end of September 2013 amounted to $376.2 million, up by impressive 22% against the $309.2 million recorded in the equivalent period a year earlier. Profits were also robust, with adjusted pro forma net income at $50.5 million, up by 53% year-on-year.

For the third quarter, however, the results were less strong, with revenues down by 1% against the third quarter of 2012 at $113.2 million, while net income (adjusted pro forma) down by 22% at $9.7 million. The company blamed the subdued trading environment and weaker volatility for the performance. Still, FXCM's chief executive officer Drew Niv remained optimistic, stressing that the cash flow was still resilient to the negative factors. Indeed, year-to-date 2013 cash flow from operating activities rose to $140.8 million against $53.4 million in the equivalent period in 2012.

Let's also note that FXCM's net income was way higher than the $4.7 million generated by its rival Forex.com in the third quarter.

The Forex broker also reported some key operating metrics for October 2013, with institutional Forex volumes at $176 billion, a rise of 232% from October 2012, but 3% lower than in September 2013. Retail Forex volumes amounted to $315 billion, showing the opposite performance pattern: a rise of 11% month-on-month and a drop of 3% year-on-year.

The number of daily average trades by retail clients was 379,280, 11% higher than in October 2012, while the count of daily trades by institutional clients, at 29,063, also staged an year-on-year rise – of 397%. This reading is apparently reflecting the boost which FXCM's institutional segment has enjoyed lately thanks to a series of acquisitions.

You can see FXCM's press release below.

FXCM Inc. Announces Third Quarter 2013 Results

Releases October 2013 Operating Metrics

Third Quarter 2013 Summary:

Revenues of $113.2 million, a decrease of 1% versus Third Quarter 2012

Adjusted Pro Forma EBITDA of $33.0 million, a decrease of 11% versus Third Quarter 2012

Adjusted Pro Forma net income of $9.7 million or $0.13 per fully diluted share, a decrease of 22% and 24% respectively versus Third Quarter 2012

U.S. GAAP net loss attributable to FXCM Inc. of $5.1 million or $0.15 per diluted share - includes a $15.0 million reserve established for certain regulatory matters — versus net income of $4.5 million or $0.17 per diluted share in the Third Quarter 2012

Year to date 2013 cash flow from operating activities of $140.8 million versus $53.4 million in the same period 2012

October 2013 Operating Metrics Summary:

Retail customer trading volume of $315 billion, up 11% from September 2013

Institutional customer trading volume of $176 billion, down 3% from September 2013

NEW YORK--(BUSINESS WIRE)-- FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended September 30, 2013, revenues of $113.2 million, compared to $114.9 million for the quarter ended September 30, 2012, a decrease of 1%.

Adjusted Pro Forma EBITDA for the Third Quarter 2013 was $33.0 million, compared to $37.2 million for the Third Quarter 2012, a decrease of 11%. Adjusted Pro Forma Net Income was $9.7 million or $0.13 per share for the Third Quarter 2013, compared to $12.5 million or $0.17 per fully diluted, fully exchanged share for the Third Quarter 2012, a decrease of 22% and 24% respectively.

U.S. GAAP net loss attributable to FXCM Inc. was $5.1 million for the Third Quarter 2013 or ($0.15) per diluted FXCM Inc. Class A share, compared to net income of $4.5 million or $0.17 per diluted FXCM Inc. Class A share for the Third Quarter 2012. Third Quarter 2013 results include a $15.0 million reserve established for certain regulatory matters.

For the nine months ended September 30, 2013, revenues were $376.2 million, compared to $309.2 million for the nine months ended September 30, 2012, an increase of 22%.

Adjusted Pro Forma EBITDA for the nine months ended September 30, 2013 was $131.2 million, compared to $83.1 million for the nine months ended September 30, 2012, an increase of 58%. Adjusted Pro Forma Net Income was $50.5 million or $0.66 per fully diluted, fully exchanged share for the nine months ended September 30, 2013, compared to $32.9 million or $0.45 per fully diluted, fully exchanged share for the nine months ended September 30, 2012, an increase of 53% and 47%, respectively.

U.S. GAAP net income attributable to FXCM Inc. was $11.9 million for the nine months ended September 30, 2013 or $0.37 per diluted FXCM Inc. Class A share, compared to $6.0 million or $0.27 per diluted FXCM Inc. Class A share for the nine months ended September 30, 2012, an increase of 98%% and 37% respectively.

"Despite a muted trading environment, we are pleased to see the business still generating strong cash flow," said Drew Niv Chief Executive Officer. "Volatility declined throughout the quarter, resulting in lower trading activity, but our business is built to withstand these headwinds."

"When such market conditions occur, diversity and scale are critical. With $422 million of cash and all of our $155 million credit facility available — we have more than enough liquidity to pursue acquisitions and return capital to shareholders," he added.

Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC Units into FXCM Inc. Class A common stock, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity's tax provision. In addition, Adjusted Pro Forma results eliminate certain expenses not in the ordinary course of business as well as reclassifies the allocation of earnings of Lucid non-controlling members recorded as compensation expense to net income attributable to non-controlling interest.

FXCM Inc. today announced certain key operating metrics for October 2013 for its retail and institutional foreign exchange business. Monthly activities included:

October 2013 Operating Metrics

Retail Trading Metrics

Retail customer trading volume of $315 billion in October 2013, 11% higher than September 2013 and 3% lower than October 2012.

Average retail customer trading volume per day of $13.7 billion in October 2013, 1% higher than September 2013 and 3% lower than October 2012.

An average of 379,280 retail client trades per day in October 2013, 1% lower than September 2013 and 11% higher than October 2012.

Tradable accounts of 188,814 as of October 31, 2013, a decrease of 174, or flat from September 2013, and a decrease of 14,900 or 7%, from October 2012.

Institutional Trading Metrics

Institutional customer trading volume of $176 billion in October 2013, 3% lower than September 2013 and 232% higher than October 2012.

Average institutional trading volume per day of $7.7 billion in October 2013, 10% lower than September 2013 and 235% higher than October 2012.

An average of 29,063 institutional client trades per day in October 2013, 24% lower than September 2013 and 397% higher than October 2012.

About FXCM Inc.

FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange, or FX, trading and related services to retail and institutional customers world-wide.

At the heart of FXCM's client offering is No Dealing Desk FX trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, offers Contract for Difference ("CFD") products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with FX on one platform. In addition, FXCM offers educational courses on FX trading and provides free news and market research through DailyFX.com.

TAGS: fxcm fxcm forex broker fxcm us broker fxcm operating results fxcm financial metrics fxcm third quarter fxcm revenues fxcm profit forex retail volumes institutional trading volumes q3 2013 forex trading

More news about FXCM

FXCMs November trading volume rebounds from October Dec 07 2017 14:23:14
Global Brokerage files for bankruptcy, delists from NASDAQ, FXCM not involved Nov 13 2017 14:37:57
FXCM parts ways with Global Brokerage Oct 03 2017 07:45:27
FXCM: our clients will not be affected if GLBR delists from NASDAQ Aug 22 2017 07:28:40
FXCM closes FastMatch sale, gets $46.7 million to pay Leucadia Aug 15 2017 07:41:09

Broker	Advantages
	FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
	easyMarkets is a CySEC and ASIC regulated broker offering access to over 300 trading instruments, tight fixed spreads, no slippage and a 50% deposit bonus.

	XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
	FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
	FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
	FBS is a broker with cool marketing and promotions. It runs an ongoing monthly $999 forex contest, offers a $5 no-deposit bonus for anyone willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
	FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
	HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage - one of the highest in the industry.
	Exness is a leading forex broker, offering MT4 and MT5 platforms. Traders can take advantage from a true ECN environment and trade on ultra tight spreads, starting from 0 pips.

Broker	Country	Regulation	Platform	Min Deposit	Review
	Cyprus, UK, Mauritius	CySec, FCA, IFSC	MT4, MT5, Web	$10	Review Website
	Cyprus, Australia	CySec, ASIC	MT4, Web, Mobile app	$100	Review Website
	Australia, Cyprus	ASIC	MT4, MT5, IRESSTrader	$100	Review Website
	UK, Cyprus, Australia	FCA, CySec, ASIC	MT4, MT5	$5	Review Website
	UK, Australia	FCA, ASIC	MT4, Trading Station, NinjaTrader	$50	Review Website
	UK, Cyprus, UAE, South Africa	FCA, CySEC, DFSA, FSB	MT4, MT5, FxPro Markets, cTrader	$100	Review Website
	Cyprus	CySEC	MT4, MT5, Web	$1	Review Website
	Belize	IFSC	MT4, MT5	$100	Review Website
	Cyprus, UK, South Africa, UAE	CySec, FCA, FSCA, DFSA	MT4, MT5, Web	$5	Review Website
	Cyprus, UK	CySEC, FCA	MT4, MT5	$1	Review Website
	Australia	ASIC	MT4, MT5	$100	Review Website
	UK	FCA	MT4, Web, MT4 for Mac	$100	Review Website
	Australia, UK	ASIC, FCA	MT4, MT5, cTrader	$200	Review Website

More Forex Brokers News

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

Award-winning forex brokerage FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

Fortrade is the first broker to get an ASIC license in nearly 2 years

Mar 20 2019 15:03:35

Fortrade acquired a financial services license from the Australian Securities and Investments Commission (ASIC), which hasn’t been very welcoming of new retail forex broker applicants lately. Read more

FP Markets launches a suite of cutting-edge MT4 tools for traders

Mar 06 2019 14:31:42

FP Markets, a market-leading Forex and CFD provider, launches MT4 Trader Toolbox, a suite of twelve online trading tools which will take their clients’ trading to the next level. Read more

Major broker IG launched its US website

Jan 31 2019 13:15:37

Global brokerage IG launched its website intended for US retail clients (www.ig.com/us). Residents of the US (with the exception of those in Arizona or Ohio) can now register on the broker’s website in less than 5 minutes and start trading. Read more