Forex

Market News

FXCM’s stock price ended the year on a low note

The stock price of major forex brokerage FXCM (NASDAQ:FXCM) hit a 52-week low on Friday (30 Dec), its shares closing down at $7.05. The figure represents a drop by more than 55%, compared to a year earlier – on Jan 4, 2016 the broker’s stock traded for $15.77 apiece.

 

Throughout the last trading day of 2016, a total of 53 569 FXCM shares changed hands, leaving the company with a market capitalization of $39.5 million – in fact, one of the lowest among publicly listed forex brokers.

In comparison, the broker’s main peer, Gain Capital (NYSE: GCAP), registered a 13.5% drop in its stock price in 2016: its shares traded for $6.58 a piece at market close on December, 30, while on January 4, its price was $7.61. Gain Capital operates the famous  Forex.com brand, designed for retail clients.

 

Indeed, 2016 was a tough year for FXCM – mainly due to the fact that the broker has an unfavorable debt to Leucadia National Corp. The brokerage drew a $300 million loan from the lender to cover clients' losses and meet the minimum capital requirements ($20 million) after the Swiss franc spike in January 2015. In order to repay this debt (with high punitive rate of interest), FXCM had to sell two of its subsidiaries - FXCM Japan Securities and FXCM Asia (aka FXCM Hong Kong) - to Japanese company Rakuten Securities. In October, it also sold its news and research portal DailyFX to IG Group (LON:IGG) for $40 million and more than half of the debt to Leucadia is repaid.

 

Despite the financial difficulties it is experiencing, FXCM has retained its leading position on the US market in terms of both retail trading volumes and client deposits. Besides, in November the FXCM Group announced it is expanding to South Africa - a market with huge potential.

 

Currently, the FXCM Group is 50.1% majority owned by FXCM Inc. The rest of the group moved to the hands of Leucadia National Corporation as part of an agreement the two companies signed to amend the conditions of their credit letter agreements.

  

Forex Capital Markets is one of the few brokers who still operate in the US. It 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, CFDs, and spread betting services.

TAGS: FXCM  NASDAQ  stock prices  market cap  forex broker  52-week low 

More news about FXCM

Broker Country Regulation Platform Min Deposit Review
Cyprus CySec MT4, MT5, Web $5 Review Website
UK, Australia FCA, ASIC MT4, Web,
Mirror Trader,
Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, Hong Kong FCA, CySEC, SFC MT4, Web,
PrimeTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, Web $100 Review Website
UK, Australia, Singapore FCA, ASIC, MAS, BaFin MT4, Web,
ProRealTime,
2Dealer
$0 Review Website
UK, Cyprus FCA, CySec MT4, MT5 $5 Review Website
UK, Cyprus FCA, CySEC MT4, MT5,
cTrader,
SuperTrader,
FxPro Markets
$100 Review Website
Cyprus CySEC MT4, MT5 $300 Review Website
Belize IFSC MT4, MT5 $100 Review Website
UK, Cyprus, Bulgaria FCA, CySec, FSC Web $150 Review Website
Seychelles FinaCom MT4 $10 Review Website
Belize IFSC MT4, Web $500 Review Website
Cyprus CySEC MT4, Web $25 Review Website
Belize IFSC MT4, MT5, Web $1 Review Website
Cyprus CySec MT4, Web, Gwasy $100 Review Website

More Forex Market News

CySEC considers banning binary options altogether

May 25 2017 14:30:53

The Cyprus Securities and Exchange Commission (CySEC) considers banning binary options trading altogether, reported Finance Magnets. The online media cited CySEC Head, Demetra Kalogerou, who delivers a speech at the iFX Expo International 2017 on Thursday. Read more

Online investment scams in Australia mark a 130% increase YoY

May 15 2017 13:26:28

The report of the Australian Competition and Consumer Commission (ACCC) for 2016 revealed that Investment scheme scams caused the greatest losses to Australians, after romance and dating frauds. Read more

AFCA: The new EDR for all Australian forex brokers

May 12 2017 13:53:17

The federal executive government of Australia announced it will introduce a comprehensive package of measures to strengthen the accountability and competition in the country’s financial system. Read more

Forex

FCA updates its warning list with ExxonFX

May 10 2017 09:48:44

 The UK Financial Conduct Authority (FCA) warned forex broker ExxonFX has been providing financial services in the country without being authorized. The broker is owned and operated by Revolution Markets LP and claims to be based in the UK. Read more

Germany requires forex brokers to introduce negative balance protection, IG Group & CMC Markets react

May 09 2017 12:14:49

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, a.k.a. BaFin) announced on Monday it introduces certain restrictions to CFD trading in order to safeguard the interests of retail clients. Read more

FBI: Losses from binary options fraud run into the millions

Mar 14 2017 13:02:11

 It seems that the regulators and law enforcement agencies across the world are finally becoming aware of the risks of trading in binary options. Read more

Singapore's regulator warns of dangers of unregulated binary options brokers

Mar 14 2017 11:56:36

Singapore's financial services regulator, the Monetary Authority of Singapore (MAS) has published an advisory warning the investors of the dangers of trading with unregulated binary options brokers and platforms. Read more

Ireland proposes restrictive measures for forex and CFD trading

Mar 06 2017 10:44:05

After the Financial Conduct Authority capped leverage to 1;50 and banned trading bonuses in the UK, it is hardly a surprise that the Irish financial watchdog follows suit. Read more

FCA survey: Over 55s have lost £32 000 on average to investment scam

Mar 02 2017 14:46:49

UK's senior citizens, or the people above 55 years of age, to be more precise, have lost an average of £32,000 in 2016 to various financial investment scams, shows a survey of UK's Financial Conduct Authority, published as part of its Scam Smart campaign. Read more

What are the risks of trading with offshore forex brokers?

Feb 28 2017 13:05:12

Offshore destinations are famous for its light touch regulation, if any. They are attractive locations to forex and binary options brokers, as it is relatively easy and cost-effective for startups to register and run a brokerage business. Read more

Forex