FXCM does not just help investors trade stocks, commodities, indices, and forex using their platform, they also provide interested investors with a company that they can invest in: FXCM itself.
That’s right. Unlike a lot of other brokers out there, like iForex and XTrade, FXCM is a publicly traded company. It trades as FXCM on the New York Stock Exchange, which is arguably the largest stock exchange in the world.
This means that should you believe that your experience using FXCM as a trading platform is unbelievably positive, then you should consider FXCM stocks. But there are a few things you need to know about FXCM investor relations before you move forward with that decision.
Facts about FXCM investor relations
FXCM launched its initial public offering on December 2, 2010, launching a new era in FXCM investor relations. Back then, it offered 15,060,000 shares of Class A Stock at $14 per share.
They are quite transparent when it comes to their stock price as they make it readily available on their website.
The company does not allow you to trade stocks of their company via their platforms, which makes sense as it might be the cause of a conflict of interest. Instead, FXCM insists you contact a registered broker if you want to invest in their stocks. They also direct people to their transfer agent, the American Stock Transfer & Trust Company, LLC, for all questions that have to do with owning their stock.
FXCM ends its fiscal year on the end of the calendar year: December 31.
The company is independently audited by Ernst & Young LLP.
However, great FXCM investor relations may be, the best indicator of whether you should trade their stock is how well it is doing. Unfortunately, their stock has seen better days, particularly back in 2014.
In the beginning of 2015, FXCM stock took a nosedive as part of the aftermath of a bailout by Leucadia National. This followed a decision from the Swiss central bank not to place a cap on the franc-euro rate, causing the euro to drop 20% in relation to the franc. Overall, these events caused an almost 90% drop practically overnight.
Since that drop, it has been pretty stable, rising significantly towards the end of 2015.
If you insist on trading stocks of forex brokers, another option would be Plus500. In comparison, Plus500 saw its stock price drop, although not as much, back in May 2015. This was caused by frozen client accounts. Since then, it has done a much better job recovering and is generally on the way back.
However, it is difficult to compare the two, as Plus500 Ltd trades on the London Stock Exchange. Although if you were to strictly convert their stock price to a uniform currency, FXCM stocks are slightly more valuable.
In the end, FXCM has solid investor relations that follow sound business practices in general. However, recent news out of their control makes it risky to invest in them now. However, it is not necessarily doing any worse or better than its peers.