Seeking Alpha

No action in FX means bad results for FXCM

  • It's a second day of losses for FXCM (FXCM -4%) after Q1 results fell far short of expectations amid dismal volatility in currency markets. Net income of $2.1M or $0.05 per share fell from $6.9M or $0.23 one year ago.
  • CEO Drew Niv: "Volatility in the currency markets is currently at lows only seen twice in the past 20 years ... We believe we have the scale to continue to weather the difficult trading conditions relative to our competition and use them to expand our market share for when conditions improve."
  • Thus far in April: Retail customer trading volume of $250B is down 14% from March, down 32% Y/Y. Tradeable accounts of 192,605 is up 2% from March, down 2% Y/Y. Institutional trading volume of $185B is down 8% from March, up 1% Y/Y.
  • Previously: FXCM misses by $0.05, beats on revenue
  • Source: Press Release
  • Looking for some growth, the company purchases the U.S. retail forex accounts of FXDirectDealer - roughly $27M in client equity and 7K active accounts.
  • Source: Press Release
  • Sandler O'Neill downgrades from a Buy to a Hold.
  • See also: GAIN Capital results muted by lack of fx volatility
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