GAIN Capital Recovers from Multi-Year Lows | Wibest Broker

The largest forex broker in the US, GAIN Capital Holdings, Inc, gained aggregated trading volumes for the second consecutive time. Despite the recovery from a long-bearing low, volumes still failed to meet its 2019 equivalent this January.

GAIN Capital’s client transactions totaled $161 billion, a 23 percent increase month-over-month since December 2019. Meanwhile, year-over-year numbers went lower by 12 percent from $184 billion in January 2019.

Average daily volumes were at $7.3 billion in January 2020, down by $8.4 billion or 13% in a yearly comparison. Against December 2019, this was up 18% from $6.2 billion per day.

Lack of trading volatility in the FX market led the slump late last year, but the company expects to recover. To make up for lower volumes, CEO Glenn Stevens remained focused on long-term strategies.

Futures went up 36% month-by-month in January 2020. Stevens said the company was encouraged by the number, showing what the new year has begun.

Active accounts totaled 123,427 this month, up both against December and its opposite in 2019. January 2019 saw 122,581 accounts while December saw 122,532.

Futures shot 36 percent higher than December’s 477,386 contracts with January’s 648,101 figure.

Previous Continuous GAIN Losses

GAIN Capital Holdings, Inc. dropped 30% in capital revenues for both the second and third quarter of 2019. Both quarters also suffered slumps in yearly comparisons since the end of 2018.

Net revenues fell to $180.6 million in Q3 in a yearly comparison from $278 million reported back in 2018. This represented a 30 percent slump.

Compared by quarter, the same quarter saw an 11 percent decrease from the previous one to $66.7 million. Q2 already saw a 10 percent decrease in net revenues from Q1 with $75.7 million.

Net loss also dropped almost $29.5 million compared with the $96 million made in January to September in 2018.