FXCM revenues rise 14%; outpace Gain Capital
FXCM, the electronic FX trading platform, announced 2011 full-year revenues of $412.4 million, a 14% increase versus the same period in 2010.
Retail customer trading volume for 2011 was $3.8 trillion, a 19% increase year-on-year, while institutional customer trading revenues increased by more than 50% to $1.2 trillion. According to Drew Niv, chief executive officer at FXCM, the results reflected a strong year in 2011 that saw its retail base grow 20% to 163,000 active accounts. FXCM also benefited from the acquisition of Japanese broker Foreland Forex in October 2011 that doubled the firm’s size in Japan, the world’s largest retail market.
Revenues in the fourth quarter, though down 4% from the previous quarter, were 9% higher than at the end of the same period a year ago and vastly better than rival Gain Capital, which last week reported its lowest quarterly revenue for more than five years.
Gain’s Q4 revenues were down 23% year-on-year and 41% lower than the previous quarter. “Interesting to note, though, is that despite having virtually identical volumes to Q4 last year, and three times more institutional volume, revenues were down 23% from last year,” says Gerald Segal, CEO at LeapRate.
“Revenues-per-volume are declining rapidly at Gain as – in our view – price competition continues to increase in the forex business.”