Gain Capital returns to profitability
Gain Capital returns to profitability explained by professional Forex trading experts the “Gain Capital returns to profitability” FX trading team.
Gain Capital returns to profitability
Gain Capital (Forex.com) announced its Q2 results today, showing a return to profit (albeit a small one) after reporting two condecutive quarters of losses. Gain earned EBITDA of $8.8 million and net income of $4.4 million in Q2.
Continuing to be troubling at Gain, however, is the issue of trading volumes. Despite showing a healthy rise in retail revenues from Q1, those revenues were earned on falling retail volume. Gain Capital’s retail volumes fell to $114 billion per month in Q2 — its lowest retail volumes since Q3-2010, the quarter before its IPO — and institutional volumes were also off slightly from Q1’s levels. Clearly Gain Capital has a problem with growth. This higher-revenues-on-lower-volumes phenomenon also demonstrates the unpredictability of being a market-maker, versus having an agent/ECN model like rival FXCM.
The company certainly is taking steps to try and promote growth — acquiring futures broker Open E Cry from optionsExpress for $12 million, getting regulated and opening in Canada, hiring more institutional brokers — but those efforts have not yet really born fruit, other than on the less-profitable institutional side of the business.
Gain Capital returns to profitability Conclusion
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