Market News

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

Jan 03 2017
By Jonathan Smith , Find me on Google+

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

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
FXCM's quarterly results recover, monthly results decline Aug 10 2017 07:50:49
FXCM's June trading volume rises 5% from May Jul 11 2017 07:27:36
FXCM announces launch of Market Data Signals Jun 28 2017 13:51:14

Broker	Advantages
	FXTM is a EU regulated forex broker, offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $1 and take advantage of tight fixed and variable spreads, 1:1000 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.
	HY Markets is global forex broker with more than 30 years of operational experience, regulated by FCA in the UK. Trade Forex with spreads as low as 1.8 pip

	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.
	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.
	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.
	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.

	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.
	Grand Capital is a MT4 forex broker, offering $500 no deposit bonus and 40% bonus on all deposits.

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

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