 |
"In the second quarter, retail clients have not lost money at all and are actually making money" |
FXCM Holdings, whose roots are very much in retail foreign exchange, has announced that its revenue for the three-month period to June 30 was $66.5 million, a 7% increase over the first quarter; its ebitda was $25.3 million. FXCM says the main growth driver was its "core business of serving self-trading clients". According to chief executive Drew Niv, these have been able to capitalize on the drop of volatility in the market in a way many other FX participants have not. "The retail business has entered a period of perfection in the last four months," he says. "Intra-day volatility is high but the major currencies are actually in tight ranges and won’t break out."
Niv adds: "It’s breakouts that retail clients lose money on, as 90% are range traders. In the second quarter, retail clients have not lost money at all and are actually making money as a group. This is especially refreshing as the three quarters before that were brutal on clients."