FXCM and Gain Capital announce Q1-2011 results – what did we learn?

May 17, 2011 - PRLog -- FXCM and Gain Capital (Forex.com) each announced their Q1 results yesterday. Wall Street was clearly unimpressed with both firms, as the shares of both traded down sharply – FXCM by 17%(!!!) and Gain by 6%. (FXCM is now down 29% from its December IPO price, Gain is off 30% –  for more details on publicly traded and M&A multiples and valuation comps in the Forex sector see our Online Forex Industry Report at http://www.leaprate.com/IndustryReport.html). However we at LeapRate saw the Q1 announcements of both firms positively, with both making nice volume and client assets gains (following similar decent results of early reporters Swissquote Bank and IG Group), and serious inroads in Asia, positioning both firms for strong results down the road.

Our key takeaways from the results announcements and analyst calls?
-   The growing importance of Asia.
-   Customer Equity growth.
-   Increased costs of being a public company.
-   Volumes are looking great.

For more details and analysis on each of these points see our Forex Industry News section at http://www.leaprate.com/News.html.

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