FXCM’s decision to move away from a principal-based trading model to an agency one now looks to be paying dividends. The company’s revenue for the three months to the end of June was $66.5 million, providing ebitda of $25.3 million. Over the first half, FXCM’s revenue was $128.6 million, with ebitda of $50.6 million.
FXCM says that it has not been impacted by the fall in volatility in the FX market. “The retail business has entered a period of perfection in the last four months,” says its chief executive Drew Niv. “Intra-day volatility is high, but the major currencies are actually in tight ranges and won’t breakout. It’s breakouts that retail clients lose money on – 90% (of them) are range traders. In Q2, retail clients have not lost money at all and are actually making as a group. This is especially refreshing as the three quarters before that were brutal on clients.” He concludes: “Obviously I am crossing my fingers that this situation continues.”