IG Group reports year-end, (healthy) volumes for FXCM and Alpari

IG Group reports year-end explained by professional Forex trading experts the “IG Group reports year-end” FX trading team.

IG Group reports year-end

The market cheered the results, with IG Group’s stock up 5.3% in heavy trading. Other than it being a good overall day for the markets (FTSE was up 0.65%), it seems as though the market liked management’s statement about June ’11 (the first month in fiscal 2012) being better than June last year.

For IG Group’s complete report of 2011 year end see:
https://www.iggroup.com/content/files/annual_results_july11.pdf

2) Trading Volumes. FXCM (June ’11 – $389 billion) and Alpari (May ’11 – $210 billion). FXCM has made it a very (positive!) habit of publicly announcing its monthly trading volume numbers and some other related stats, fairly soon after each month end. (One of the reasons they are on our LeapRate Approved List of Forex firms). While not showing much growth, FXCM does seem to have settled in and cemented its position as the world’s largest online FX broker, doing nearly $400 billion of combined retail and institutional monthly volume ($317 billion retail and $72 billion institutional in June). The one troubling figure with FXCM remains its low level of client profitability. As reported last week by Forex Magnates, FXCM came in with the worst client profitability numbers of all the major US Forex firms in Q2, with just 22% of FXCM clients making money (among US clients only) – well below the industry average of 25% – despite FXCM’s continued protestations that its “no-dealing-desk” model is better for clients. Our view remains that since all firms in the Forex value chain need to make money (or else why are they in business?), and that at some point or another there is a market maker out there taking the opposite side of every client trade, clients are better off minimizing the number of middlemen between them and the eventual market maker, by trading directly via a reputable market making firm. Nothing wrong with an “agent” no-dealing-desk firm, but as FXCM’s poor client profitability numbers continue to show, clients are not necessarily better off that way.

IG Group reports year-end Conclusion

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