FXCM reported its monthly metrics for November, and by our calculation has now become the first retail Forex firm to hit the lofty milestone of $500 billion in monthly trading volume. (Specifically, FXCM’s volumes have averaged $502 billion).
What makes this most remarkable, in our view, is that FXCM has accomplished this continued growth while its home market (the U.S., of course) has shrunk significantly following tough new regulatory restrictions in the U.S. The U.S. market now accounts for just 12% of FXCM volume – by contrast, leading UK trading firm IG Group still does more than half of its business at home in the UK.
As per the graph above, much of the growth in FXCM’s total volumes has been in its institutional segment, surpassing $150 billion per month for the first time in October and November. It should also be noted that both ICAP and Hotspot FX, leading Forex ECNs, saw at the same time a dropoff in volumes in Oct and Nov. We believe that FXCM remains in prime position to continue to be one the world’s leaders in Forex trading, as the industry continues to grow internationally.