Company Update (NYSE:FXCM): FXCM Inc Releases Detailed Execution Study


FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange (FX) trading and related services, today disclosed detailed information into the quality of execution for Forex Capital Markets, LLC1 (“FXCM”) retail clients’ orders. The study finds that FXCM Retail Client order2 execution is better than if the same orders were executed on the futures Market or the interbank market.3 The results show FXCM’s execution of orders provide customers significant advantages for FX.

Study Conclusions:

  • FXCM was equal to or better than the quoted futures price 90.83% of the time compared to the spot equivalent quoted futures prices on the CME leading to potential savings of $36,350,525 for FXCM clients1.
    • Better than the futures price: 86.47%
    • Equal to the futures price: 4.36%
    • Worse than the futures price: 9.17%
  • FXCM was equal to or better than the quoted interbank market price 95.31% of the time compared to the spot equivalent quoted interbank market price leading to potential savings of $55,121,988 for FXCM clients.
    • Better than the interbank price: 92.19%
    • Equal to the interbank price: 3.12%
    • Worse than the interbank price: 4.69%

“We wanted to explain why FXCM’s liquidity providers provide better pricing on our retail trading platform for Retail Clients,” said Drew Niv, FXCM’s CEO.

“Our liquidity providers are only allowed to be price makers for our retail clients and not price takers,” Niv added. “Only our Retail Clients can take a price which protects the market maker from potentially being picked off by larger or faster predatory market takers, making them more comfortable and giving them the ability to make a market based on quality of price and liquidity rather than speed.” (Original Source)

Shares of FXCM Inc closed yesterday at $11.50. FXCM has a 1-year high of $27.90 and a 1-year low of $5.26. The stock’s 50-day moving average is $12.92 and its 200-day moving average is $9.92.

FXCM Inc is an online provider of foreign exchange trading and related services to retail and institutional customers. It offers its customers the ability to trade contract for differences, spread betting, equities and equity options.