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2016-02-02

FXCM Inc. : FXCM Releases Detailed Execution Study

FXCM Inc. / FXCM Releases Detailed Execution Study. Processed and transmitted
by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the
content of this announcement.
NEW YORK, Feb. 02, 2016 (GLOBE NEWSWIRE) --FXCM Inc.(NYSE:FXCM), a leading
online provider of foreign exchange (FX) trading and related services, today
disclosed detailed information into the quality of execution for Forex
Capital Markets, LLC1("FXCM") retail clients' orders. The study finds that
FXCM Retail Client order2execution isbetter than if the same orders were
executed on the futures Market or the interbank market.3The results show
FXCM's execution of orders provide customers significant advantages for
FX.For a full presentation of the study and an in-depth FAQ clickhere.

Study Conclusions:

* FXCM was equal to or better than the quoted futures price90.83% of the time
compared to the spot equivalent quoted futures prices on the CME leading to
potential savings of$36,350,525 for FXCM clients1. * Better than the
futures price:86.47% * Equal to the futures price:4.36% * Worse than the
futures price:9.17%

* FXCM was equal to or better than the quoted interbank market price95.31% of
the time compared to the spot equivalent quoted interbank market price
leading to potential savings of$55,121,988 for FXCM clients. * Better than
the interbank price:92.19% * Equal to the interbank price:3.12% * Worse
than the interbank price:4.69%

"We wanted to explain why FXCM's liquidity providers provide better pricing on
our retail trading platform for Retail Clients," said Drew Niv, FXCM's CEO.

"Our liquidity providers are only allowed to be price makers for our retail
clients and not price takers," Niv added. "Only our Retail Clients can take a
price which protects the market maker from potentially being picked off by
larger or faster predatory market takers, making them more comfortable and
giving them the ability to make a market based on quality of price and
liquidity rather than speed."

The FXCM execution study aims to highlight:

The results of the study reveal that for Retail Clients, if they chose to be
market takers in the same venues where banks and HFTs are market takers, they
will likely have experienced execution at higher prices. Retail Clients
trading with venues like FXCM, where the Retail Clients are market takers and
liquidity providers are only market makers, will likely experience execution
at lower prices. For the full year 2015 during peak trading hours for FXCM
and its affiliates4and in the most traded pair at FXCM, EUR/USD, spreads were
.1 pip or less 8.32% of the time with an overall average of .3 pips.

Each venue type plays a pivotal role in the FX market:

The FXCM execution study objectively addresses the pivotal roles market
participants play, including HFTs, Banks, and ECNs. FXCM strongly believes
that these institutions provide invaluable service with respect to their role
within the marketplace. High frequency market making is an essential
ingredient of modern markets and is fundamentally just an evolution of an age
old activity. Banks are excellent market makers to the FXCM Retail Clients
and are incentivized to provide larger trade sizes for our bigger customers.
Likewise, the ECNs compared in the study, CME, EBS and Reuters are the
leading FX market trading venues for a reason; these ECNs play a big role
servicing the largest FX trading houses around the world, providing that
service that isn't available at any other venue or for comparable pricing.
If the banks and HFTs couldn't be market takers on those venues they couldn't
fulfill their role properly as market makers for clients like FXCM. FXCM is
not pretending in any way shape or form that it can use its platform to
service HFTs and Banks as market takers.

More About the Study:
This study covers the period from October 1, 2014 to August 31, 2015 and is
based on the trade data of Forex Capital Markets, LLC clients on NDD.
Assumptions made during the course of this study were designed to favor the
futures market or interbank market in their comparison to FXCM order
execution. A more in-depth description of the methodology and assumptions
made is included at the end of the study presentation foundhere.

Futures Market Comparison:
FXCM equal to or better than the futures price 90.83% of the time.

* Estimated savings to FXCM LLC clients:$36,350,525
* Average savings per order:$2.04
* Number of orders included in the study:17,855,552
* Round turn trading costs including the spread, commission, and any
additional exchange and regulatory fees are up to 58% lower at FXCM
compared to popular futures brokers.
* FXCM LLC represents less than 25% of company's entire retail client base.
Extrapolated out to the global audience, the potential savings would
begreater than $145M .
* The futures market data includes only the following currency
pairs/contracts: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/CHF, and
USD/JPY
* The conversion of the futures price to a Spot price was based on Basis
received from a 3rd party major international bank.
* These are the equivalent amounts of each Spot standard size contract on the
CME: * 125,000 EURUSD * 125,000 USDJPY * 125,000 USDCHF * 62,500 GBPUSD *
100,000 AUDUSD * 100,000 NZDUSD * 100,000 USDCAD
* The average minimum quote size for an FXCM Liquidity Provider is 1,000,000
units of the base currency. Accordingly, when the best quote on the CME was
less than 1,000,000 units of the base currency, the next best quote was
used as the basis for each order comparison.

Interbank Market Comparison:
FXCM equal to or better than the interbank price 95.31% of the time.

* Estimated savings to FXCM LLC clients:$55,121,988
* Average savings per order:$1.94
* Number of orders included in the study:28,378,957
* Extrapolated out to the global audience, the potential savings would
begreater than $220M .
* The interbank market data was based on the following "direct" currency
pairs: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/CHF, and USD/JPY
* Market data for currency crosses were derived from the direct currency
pairs.
* In some cases, the interbank market data was not captured due to technical
reasons. For those cases, the corresponding FXCM Retail Client orders were
excluded from this study.

Methodology Used:
Major assumptions

* The comparison to each of the futures and interbank data is made at the
time that the FXCM Retail Client order is executed. Normal market slippage
and slippage due to rejections by liquidity providers are already included
by the time the FXCM Retail Client order is executed. However, there is an
assumption that there isno slippage on the futures or interbank market
data.
* In order to maintain consistency, futures market data and interbank data
used the same acceptable ranges in market trades. The summary of findings
is based on the assumption that the maximum acceptable difference between
the FXCM price and the interbank/futures market price is 5 pips in either
direction.
* Fees that a participant would pay on the futures or interbank market, such
as CME Exchange Fees, NFA Fees, FCM Fees, Clearing Fees, and other
commissions, were excluded from the study. Similarly, FXCM Commissions are
excluded from the study.

For a full presentation of the study and an in-depth FAQ clickhere.

1Registered Futures Commission Merchant and Retail Foreign Exchange Dealer
with the Commodity Futures Trading Commission and member of the National
Futures Association, NFA # 0308179.

2FXCM's Retail Clients are defined as individual, joint, and corporate
accounts trading on our retail price stream.

3FXCM Study of execution for FXCM clients' orders versus the Futures market
and the Interbank market for FX, December 2015 ("FXCM Study of execution for
FXCM clients' orders 2015"). 17,855,552 orders included in the study. The
figures in this study are provided for information purposes only, and are not
intended for trading purposes or advice. FXCM is not liable for any
information errors, incompleteness, or delays, or for any actions taken in
reliance on information contained herein. Comparison does not include fixed
costs, commission, or markup.

4Affiliates include Forex Capital Markets Limited (Financial Conduct Authority
registration number 217689) and FXCM Australia Limited (regulated by ASIC
AFSL 309763). Peak trading hours defined as 1am EST - 1pm EST.

The study does not in away way attempt to represent that FXCM maintains a
particular capacity or performance level. Past results are not indicative of
future performance.

About FXCM Inc.

FXCM Inc. (NYSE:FXCM) is a leading provider of online foreign exchange (forex)
trading, CFD trading, spread betting and related services. Our mission is to
provide global traders with access to the world's largest and most liquid
market by offering innovative trading tools, hiring excellent trading
educators, meeting strict financial standards and striving for the best
online trading experience in the market.

Clients have the advantage of mobile trading, one-click order execution and
trading from real-time charts. In addition, FXCM offers educational courses
on forex trading and provides free news and market research
throughDailyFX.com.

Trading foreign exchange and CFDs on margin carries a high level of risk,
which may result in losses that could exceed your deposits, therefore may not
be suitable for all investors.Read full disclaimer.

Visitwww.fxcm.comand follow us on Twitter@FXCM, FacebookFXCM, Google+FXCMor
YouTubeFXCM.

FXCM Inc.
Jaclyn Klein, 646-432-2463
Vice-President, Corporate Communications
jklein@fxcm.com
investorrelations@fxcm.com

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FXCM Inc. via Globenewswire

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