FNG Exclusive… FNG has learned via regulatory filings that Forex Capital Markets Limited, the FCA regulated UK arm of global Retail FX broker FXCM, saw a modest 12% decrease in Revenues in 2021, but remained profitable for the year.

Revenues at FXCM UK came in at $13.6 million for 2021, down 12% from $15.4 million in 2020. The company’s net profit for the year fell from $4.9 million in 2020 to just above breakeven in 2021, at $227,982.

Client cash held also declined, $174 million as at year-end 2020 to $147 million in 2021, mostly due to client migration to affiliates during the year. The UK formally left the EU on 31 January 2020 and entered the transitional period which ended on 31 December 2020. During 2021, the company was no longer able to service EU clients directly and they were invited to transition to an FXCM Group EU affiliate.

Retail trading volumes at FXCM UK decreased by 22% YoY in 2021 thanks to heightened volatility in 2020, averaging $40 billion monthly (2020: $50 billion).

FXCM UK offers online FX and CFD trading to its retail and professional clients utilising the online trading platforms of affiliated companies. The company offsets all of its FX and CFD trades with affiliate entities and is compensated for selling this risk on a commission basis. In this capacity, the company is acting as a referring broker to these entities and is the principal counterparty to the client transaction. The profit or loss for the company is dependent on the trading volume of its clients.

During 2021 the company undertook restructuring both in its London and its European offices. The process of winding-down the European offices continues into early 2022 and is not yet complete as at the date of preparation of the financial statements. Within these financial statements $2.1 million has been expensed for these restructuring costs.

FXCM is a Leucadia Company, part of Jefferies Financial (NYSE:JEF).

FXCM UK’s income statement and balance sheet for 2021 follow: