Retail Forex Broker FXCM Posts $61 Million Net Revenue in Q3

Retail foreign exchange broker FXCM released its Q3 results today. The New York-based firm reported a total turnover of $305 billion from 177,949 retail trading accounts during the month of October. This figure was about 6 percent lower than last month’s reading and about 9 percent lower than October of last year.

Average daily retail turnover on FXCM stands at $14.5 billion - 538, 098 trades per day - for the month of October.

Institutional volume figures for October came in at $24 billion, a 17 percent drop compared to September and about 29 percent lower than October of 2015, "An average of 37,709 institutional client trades per day in October 2016, 9% lower than September 2016 and 32% higher than October 2015," states the release.

FXCM’s U.S. GAAP net revenues clocked in at $61.4 million, with U.S. GAAP net loss from operations coming in at $35.8 million. A large portion of the loss came from a $27 million hit related to embedded derivatives associated with the loan FXCM received from Leucadia in the aftermath of the SNB debacle, on January 15, 2015.

The brokerage posted solid growth of customer deposits in the third quarter:
“Solid growth in customer equity to $725 million — up 10% from June 30, 2016 and up 6% from December 31, 2015.”
Operating cash for FXCM currently stands at $227.6 million, with a $90 million regulatory surplus that was recorded at the end of September.