FXCM Inc. Announces First Quarter 2015 Results 

Releases April 2015 Customer Trading Metrics

First Quarter 2015 Highlights:

• U.S. GAAP trading revenues from continuing operations of $69.2 million
• U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $393.3 million or $8.35 per fully diluted share
• U.S. GAAP revenues from discontinued operations of $28.8 million
• U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations of $33.5 million or $0.71 per fully diluted share
• Results from continuing and discontinued operations include $265.3 million of bad debt expense related to January 15^th SNB action, a $292.4 million non-cash expense item relating to Leucadia’s financing package, a $96.2 million non-cash impairment relating primarily to goodwill and intangibles for FXCM’s institutional business and a net $32.7 million non-cash expense relating to the write-down of deferred tax assets
• Adjusted EBITDA from continuing and discontinued operations of $14.5 million
• Strong operating cash position of $328.7 million in combined operating cash and regulatory surplus of $200.6 million at March 31, 2015
• Repaid $81.6 million of Leucadia loan to date – $12.4 million in the quarter and $69.2 million subsequent to quarter-end

April 2015 Customer Trading Metrics from Continuing Operations⁽¹⁾ Highlights:

• Retail customer trading volume⁽²⁾ of $306 billion, 7% lower than March 2015
• Institutional customer trading volume⁽²⁾ of $220 billion, 10% lower from March 2015
• Retail account additions of 3,045, 2% higher than March 2015

FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange, or FX, trading and related services, announced for the quarter ended March 31, 2015, U.S. GAAP trading revenues from continuing operations of$69.2 million, compared to $82.2 million for the quarter ended March 31, 2014, a decrease of 16%. U.S. GAAP net loss attributable toFXCM Inc. from continuing operations was $393.3 million for the first quarter 2015 or $8.35 per fully diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $0.8 million or $0.02 per fully diluted share for the first quarter 2014.

Results from operations for the quarter ended March 31, 2015 included a number of extraordinary items that resulted from the events ofJanuary 15, 2015 where FXCM’s customers suffered negative equity balances due to the unprecedented move in the Swiss Franc after the Swiss National Bank (SNB) discontinued its peg of the Swiss Franc to the Euro and the subsequent financing package provided by Leucadia National Corp. (“Leucadia”) announced on January 16, 2015 in order for FXCM to maintain its regulatory capital requirements.

Included in the first quarter 2015 in continuing operations were: (i) a $256.9 million bad debt expense, net of recoveries, relating to negative client equity balances, (ii) a loss on derivative liability of $292.4 million, a non-cash item relating to the increase in value of the Leucadia Letter Agreement, a component of the financing package provided by Leucadia, which is treated as a derivative under U.S. GAAP and valued at its estimated fair value on each reporting date and (iii) goodwill impairment losses of $9.5 million, primarily in the institutional business, (iv) other income of $145.2 million due to the reduction of FXCM Inc.’s estimated tax receivable agreement liability offset by a corresponding provision for income tax of $177.9 million.

FXCM estimated the fair value of the Leucadia Letter Agreement using a combination of valuation approaches, including using the common stock price of FXCM, a guideline public company method as well as a discounted cash flow method, then using an option pricing model for the allocation of enterprise value among various components. Small changes in assumptions in the models used could materially change the estimated fair value.

In the quarter, FXCM classified several non-core assets⁽³⁾ as discontinued as they are in the process of being sold. The first of these businesses, FXCM Japan, was sold on April 1, 2015 for $62.0 million.

U.S. GAAP revenues from discontinued operations were $28.8 million, compared to $32.2 million for the quarter ended March 31, 2014, a decrease of 10%. U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations was $33.5 million for the first quarter 2015 or $0.71 per fully diluted share, compared to U.S. GAAP net income attributable to FXCM Inc. from discontinued operations of $2.9 million or $0.07 per fully diluted share for the first quarter 2014. Results from discontinued operations include impairment losses primarily related to goodwill and intangibles of $86.7 million.

Adjusted revenue from continuing and discontinued operations for the first quarter 2015 was $98.8 million, compared to $111.3 millionfor the first quarter 2014, a decrease of 11%. Adjusted EBITDA from continuing and discontinued operations for the first quarter 2015 was $14.5 million, compared to $24.6 million for the first quarter 2014, a decrease of 41%.

Adjusted Revenue and Adjusted EBITDA are Non-GAAP financial measures. These measures do not represent and should not be considered as a substitute for net income, net income attributable to FXCM Inc. or net income per Class A share or as a substitute for cash flow from operating activities, each as determined in accordance with U.S. GAAP, and our calculations of these measures may not be comparable to similarly entitled measures reported by other companies. See “Non-GAAP Financial Measures” beginning on A-3 of this release for additional information regarding these Non-GAAP financial measures and for reconciliations of such measures to the most directly comparable measures calculated in accordance with U.S. GAAP.

FXCM Inc. announced certain key customer trading metrics for April 2015. Monthly activities included:

April 2015 Customer Trading Metrics from Continuing Operations ⁽¹⁾

Retail Customer Trading Metrics

• Retail customer trading volume⁽²⁾ of $306 billion in April 2015, 7% lower than March 2015 and 37% higher than April 2014.
• Average retail customer trading volume⁽²⁾ per day of $13.9 billion in April 2015, 7% lower than March 2015 and 36% higher thanApril 2014.
• An average of 510,050 retail client trades per day in April 2015, 3% lower than March 2015 and 58% higher than April 2014.
• Tradeable accounts⁽⁴⁾ of 188,221 as of April 30, 2015, an increase of 3,045, or 2%, from March 2015, and an increase of 40,888, or 28%, from April 2014.

Institutional Customer Trading Metrics

• Institutional customer trading volume⁽²⁾ of $220 billion in April 2015, 10% lower than March 2015 and 25% higher than April 2014.
• Average institutional trading volume⁽²⁾ per day of $10.0 billion in April 2015, 10% lower than March 2015 and 25% higher thanApril 2014.
• An average of 55,018 institutional client trades per day in April 2015, 3% higher than March 2015 and 29% higher than April 2014.

More information, including historical results for each of the above metrics, can be found on the investor relations page of FXCM’scorporate website www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate website www.fxcm.com.

⁽¹⁾ Customer Trading Metrics from Continuing Operations excludes discontinued operations of FXCM Japan and FXCM Hong Kong.

⁽²⁾ Volume that FXCM customers traded in period is translated into US dollars.

⁽³⁾ Non-core assets include FXCM Japan, FXCM Hong Kong, Lucid, V3 Markets, Faros, FXCM Securities (UK) Equities Business and FXCM’sequity investment in FastMatch.

⁽⁴⁾ A Tradeable Account is an account with sufficient funds to place a trade in accordance with FXCM trading policies.

Selected Customer Trading Metrics from Continuing Operations
	Three Months Ended March 31,
	2015	2014	% Change
Total retail trading volume ($ in billions)	$ 935	$ 813	15%
Total institutional trading volume ($ in billions)	$ 648	$ 508	28%
Total active accounts	170,890	150,285	14%
Trading days in period	63	63	0%
Daily average trades	521,901	368,852	41%
Daily average trades per active account	3.1	2.5	24%
Retail trading revenue per million traded	$ 67	$ 94	-29%
Total customer equity ($ in millions)	$ 666.8	$ 765.5	-13%

Source: FXCM

---