FXCM Inc. Announces Third Quarter 2012 Results

  FXCM Inc. Announces Third Quarter 2012 Results

                   Releases October 2012 Operating Metrics

Third Quarter 2012 Highlights:

  *Revenues of $115.0 million, up 5% versus the same period in 2011
  *US GAAP net income $4.5 million or $0.17 per fully diluted share
  *Adjusted Pro Forma EBITDA of $37.2 million, up 18% versus the same period
    in 2011
  *Adjusted Pro Forma net income of $12.5 million or $0.17 per fully diluted
    share
  *Record customer equity of $1,278 million, up 54% from same period in 2011
    and up 22% from December 2011
  *Retail revenue per million of $99/million

Business Wire

NEW YORK -- November 08, 2012

FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, or FX,
trading and related services, today announced for the quarter ended September
30, 2012, revenues under US GAAP of $115.0 million, compared to $109.0 million
for the quarter ended September 30, 2011, an increase of 5%. Adjusted Pro
Forma EBITDA for the Third Quarter 2012 was $37.2 million, compared to $31.4
million for the Third Quarter 2011, an increase of 18%. Adjusted Pro Forma Net
Income was $12.5 million for the Third Quarter 2012, compared to $17.1 million
for the Third Quarter 2011, a decrease of 27%. Adjusted Pro Forma Cash Net
Income was $22.9 for the Third Quarter 2012, compared to $27.4 million for the
Third Quarter 2011, a decrease of 16%. Adjusted Pro Forma fully diluted
earnings per share for the Third Quarter 2012 was $0.17 on a fully exchanged,
fully diluted basis compared to $0.23 for the Third Quarter 2011, a decrease
of 26%. Adjusted Pro Forma fully diluted cash earnings per share for the Third
Quarter 2012 was $0.31 on a fully exchanged, fully diluted basis compared to
$0.37 for the Third Quarter 2011, a decrease of 16%. U.S. GAAP net income was
$4.5 million for the Third Quarter 2012, compared to $3.4 million for the
Third Quarter 2011, an increase of 33%. U.S. GAAP earnings per share for the
Third Quarter 2012 was $0.17 per fully diluted Class A share, compared to
$0.21 per fully diluted Class A share for the Third Quarter 2011, a decrease
of 19%.

“FXCM turned in a solid quarter despite the continued low volatility of the
global FX markets and subdued trading environment,” said Drew Niv, Chief
Executive Officer. “In addition, our cash generation in the quarter was
particularly strong and we earned $37.2 million in EBITDA and $0.31 in cash
earnings per share.”

Adjusted Pro Forma results assume the conversion and exchange of all FXCM
Holdings, LLC Units into FXCM Inc. Class A common stock, resulting in the
elimination of the non-controlling interest and the corresponding adjustment
to the entity’s tax provision. In addition, Adjusted Pro Forma results
eliminate certain non-recurring charges and equity based compensation expense
regarding a grant of stock options at the time of FXCM’s initial public
offering (“IPO”) in December 2010.

Adjusted Pro Forma Cash results further adjusts Adjusted Pro Forma results to
eliminate certain non-cash items, including the further elimination of equity
based compensation expense unrelated to the IPO as well as depreciation and
amortization. In addition, Adjusted Pro Forma Cash results adjusts the tax
provision of Adjusted Pro Forma results to reflect only the provision for
taxes expected to be paid in the following twelve months.

FXCM Inc. today announced that it has received additional commitments from a
group of banks and has increased its credit facility to $155 million. In
addition, certain of the terms of the credit facility were modified to among
other things provide additional flexibility regarding financing and investment
initiatives.

“We are pleased with being able to increase the size of our credit facility,”
said Niv, “We now have seven banks in the facility and received a great deal
of demand as we sought to increase its size. The increased size of the
facility will allow us to conduct our current initiatives on a larger scale.”

FXCM Inc. today announced certain key operating metrics for October 2012 for
its retail and institutional foreign exchange business. Monthly activities
included:

October 2012 Operating Metrics

Retail Trading Metrics

  *Retail customer trading volume^(1) of $324 billion in October 2012, 7%
    higher than September 2012 and 5% lower than October 2011.
  *Average retail customer trading volume^(1) per day of $14.1 billion in
    October 2012, 7% lower than September 2012 and 13% lower than October
    2011.
  *An average of 341,293 retail client trades per day in October 2012, 6%
    lower than September 2012 and 26% lower than October 2011.
  *Tradable accounts^(2) of 203,714 as of October 31, 2012, an increase
    1,320, or 1% from September 2012, and an increase of 12,139,or 6%, from
    October 2011.

Institutional Trading Metrics

  *Institutional customer trading volume^(1) of $53 billion in October 2012,
    16% higher than September 2012 and 69% lower than October 2011.
  *Average institutional trading volume^(1) per day of $2.3 billion in
    October 2012, flat with September 2012 and 72% lower than October 2011.
  *An average of 5,850 institutional client trades per day in October 2012,
    3% higher than September 2012 and 86% lower than October 2011.

“FXCM showed continued progress in October despite the low volatility in the
FX markets,” stated Niv. “In addition, we look forward to our organic
initiatives for growth such as our recently launched product to attract
smaller clients as well as the migration of our institutional customers to our
in-house platform which we believe will become more material in the near
future.”

More information, including historical results for each of the above metrics,
can be found on the investor relations page of the Company's corporate
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) Volume that FXCM customers traded in period is translated into US
dollars.

^(2) A Tradeable Account is an account with sufficient funds to place a trade
in accordance with FXCM trading policies.

                                                                                                  
Consolidated Adjusted Pro Forma and U.S. GAAP Results
                                                                                                                   
                                                   Adjusted Pro Forma Cash
                  Adjusted Pro Forma (thousands    (thousands except per share      Adjusted Pro Forma (thousands
                  except
                  per share amounts)               amounts)                         except per share amounts)
                  Three Months Ended September     Three Months Ended September     Nine Months Ended September
                  30,                              30,                              30,
                  2012        2011        %        2012        2011        %        2012        2011        %
                                          Change                           Change                           Change
                                                                                                                   
Total Revenues    $ 114,948   $ 108,975   5%       $ 114,948   $ 108,975   5%       $ 309,221   $ 306,893   1%
                                                                                                                   
Referring           18,708      25,720    -27%       18,708      25,720    -27%       58,865      72,253    -19%
broker fees
Compensation        21,778      20,835    5%         20,640      20,743    0%         62,717      62,142    1%
and benefits
Other expenses     37,270     30,995    20%       37,270     30,995    20%       104,509    87,028    20%
                                                                                                                   
EBITDA             37,192     31,425    18%       38,330     31,517    22%       83,130     85,470    -3%
                                                                                                                   
Depreciation,
amortization        12,875      5,367     140%       1,158       -                    26,459      14,201    86%
and interest
expense
                                                                                                                   
Income before      24,317     26,058    -7%       37,172     31,517    18%       56,671     71,269    -20%
income taxes
                                                                                                                   
Income tax          7,397       8,932     -17%       7,167       4,102     75%        18,489      24,820    -26%
provision
                                                                                                                   
Net Income         16,920     17,126    -1%       30,005     27,415    9%        38,182     46,449    -18%
                                                                                                                   
Net income
attributable to     4,381       -         0%         7,063       -         0%         5,254       -         0%
non-controlling
interest
                                                                                           
Net Income
Attributable to   $ 12,539    $ 17,126    -27%     $ 22,942    $ 27,415    -16%     $ 32,928    $ 46,449    -29%
FXCM Inc.
                                                                                                                   
Pro forma fully
exchanged,
fully diluted       75,103      74,449    1%         75,103      74,449    1%         73,548      74,978    -2%
shares
outstanding
                                                                                                                   
Earnings Per      $ 0.17      $ 0.23      -26%     $ 0.31      $ 0.37      -16%     $ 0.45      $ 0.62      -27%
Share
                                                                                                                   
                                                                                                                   
                  Unaudited U.S. GAAP (thousands except per share amounts)
                  Three Months Ended September     Nine Months Ended September
                  30,                              30,
                  2012        2011        %        2012        2011        %
                                          Change                           Change
                                                                                                                   
Total net         $ 114,948   $ 108,975   5%       $ 309,221   $ 306,893   1%
revenues
                                                                                                                   
Referring           18,708      25,720    -27%       58,865      72,253    -19%
broker fees
Compensation        24,156      22,955    5%         81,175      68,662    18%
and benefits
Other expenses      37,771      31,257    21%        108,935     103,290   5%
Depreciation,
amortization        12,875      5,367     140%       26,459      14,201    86%
and interest
expense
                                                                                                                   
Income before      21,438     23,676    -9%       33,787     48,487    -30%
income taxes
                                                                                                                   
Income tax          3,598       8,136     -56%       4,856       10,756    -55%
provision
                                                                                                                   
Net Income         17,840     15,540    15%       28,931     37,731    -23%
                                                                                                                   
Net income
attributable to     13,327      12,142    10%        22,971      28,222    -19%
non-controlling
interest
                                                            
Net Income
Attributable to   $ 4,513     $ 3,398     33%      $ 5,960     $ 9,509     -37%
FXCM Inc.
                                                                                                                   
                                                                                                                   
Net Income (in    $ 4,513     $ 3,398     33%      $ 5,960     $ 9,509     -37%
thousands)
                                                                                                                   
Net Income per
Class A Share
Basic and         $ 0.17      $ 0.21      -19%     $ 0.27      $ 0.56      -53%
Diluted
                                                                                                                   
Average Class A
shares             26,913     16,468    63%       22,416     16,997    32%
outstanding
                                                                                                                   

                                                                  
Selected Operating Metrics
                                                                                
                (Unaudited)                      (Unaudited)
                Three Months Ended September     Nine Months Ended September
                30,                              30,
                2012        2011        %        2012        2011        %
                                        Change                           Change
                                                                                
Total trading
volume ($ in    $ 861       $ 1,042     -17%     $ 2,715     $ 2,802     -3%
billions)
                                                                                
Total
institutional
trading         $ 156       $ 309       -50%     $ 956       $ 742       29%
volume ($ in
billions)
                                                                                
Total active      171,274     156,053   10%        171,274     156,053   10%
accounts
                                                                                
Trading days      65          66        -2%        195         195       0%
in period
                                                                                
Daily average     345,790     438,599   -21%       363,893     366,902   -1%
trades
                                                                                
Daily average
trades per        2.0         2.8       -29%       2.2         2.5       -12%
active
account
                                                                                
Retail
trading
revenue per     $ 99        $ 93        6%       $ 94        $ 96        -2%
million
traded
                                                                                
Total
customer        $ 1,278.4   $ 828.2     54%      $ 1,278.4   $ 828.2     54%
equity ($ in
millions)
                                                                                

Non-GAAP Financial Measures

Adjusted Pro Forma EBITDA, Adjusted Pro Forma Net Income, Adjusted Pro Forma
Cash Net Income, Adjusted Pro Forma Net Income per fully diluted share and
Adjusted Pro Forma Cash Net Income per fully diluted share 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 GAAP, and our
calculations of these measures may not be comparable to similarly entitled
measures reported by other companies. See “Adjusted Pro Forma Results”
beginning on A-3 of this release for additional information regarding these
non-GAAP financial measures and for reconciliations of such measure to the
most directly comparable measures calculated in accordance with GAAP.

Declaration of Quarterly Dividend

The company also announced today that its board of directors has declared a
quarterly dividend of $0.06 per share on its outstanding Class A common stock.
The dividend is payable on December 31^st, 2012 to Class A stockholders of
record at the close of business on December 19th, 2012.

Share Repurchase Program

FXCM Inc. today announced that its board of directors increased its share
repurchase program from $50 million to $80 million of its Class A common stock
and/or FXCM Holdings, LLC units. Under this program, shares may be repurchased
from time to time in open market transactions, in privately negotiated
transactions or otherwise. This leaves approximately $51.5 million under the
plan for future purchases, given the shares the company has already acquired
to date.

Conference Call

As previously announced, FXCM Inc. will host a conference call to discuss its
results at 8:15 a.m. (EST) today. This conference call will be available to
domestic participants by dialing 877.303.9132 and 408.337.0136 for
international participants. The conference ID number is 51391814.

A live, audio webcast, a copy of FXCM's earnings release, and a presentation
and replay of this conference call will also be available at
http://ir.fxcm.com/.

Disclosure Regarding Forward-Looking Statements

In addition to historical information, this earnings release contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which
reflect FXCM Inc.’s current views with respect to, among other things, its
operations and financial performance for the future. You can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,”“expects,” “potential,” “continues,” “may,” “will,” “should,”
“seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates” or the negative version of these words or other comparable
words. Such forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those indicated in
these statements. FXCM Inc. believes these factors include but are not limited
to evolving legal and regulatory requirements of the FX industry, the limited
operating history of the FX industry, risks related to the protection of its
proprietary technology, risks related to its dependence on FX market makers,
market conditions and those other risks described under “Risk Factors” in FXCM
Inc.’s Annual Report on Form 10-K and other SEC filings, which are accessible
on the SEC website at sec.gov.

These factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included in this
presentation and in our SEC filings. FXCM Inc. undertakes no obligation to
publicly update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as required by
law.

About FXCM Inc.

FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange, or FX,
trading and related services to retail and institutional customers world-wide.

At the heart of FXCM's client offering is No Dealing Desk FX trading. Clients
benefit from FXCM's large network of forex liquidity providers enabling FXCM
to offer competitive spreads on major currency pairs. Clients have the
advantage of mobile trading, one-click order execution and trading from
real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited,
offers Contract for Difference (“CFD”) products with no re-quote trading and
allows clients to trade oil, gold, silver and stock indices along with FX on
one platform. In addition, FXCM offers educational courses on FX trading and
provides free news and market research through DailyFX.com.

Trading foreign exchange and CFDs on margin carries a high level of risk, and
may not be suitable for all. Read full disclaimer.

                                                                     
ANNEX I
                                                                        
                                                                        Page
Schedule                                                             
                                                                        Number
                                                                     
U.S. GAAP Results                                                     
Unaudited U.S. GAAP Consolidated Statements of Operations for the     A-1
Three and Nine Months Ended September 30, 2012 and 2011
Unaudited U.S. GAAP Consolidated Statements of Financial Condition    A-2
As of September 30, 2012 and December 31, 2011
                                                                     
Adjusted Pro Forma and Adjusted Pro Forma Cash Results                A-3
Unaudited Adjusted Pro Forma, Adjusted Pro Forma Cash and U.S. GAAP
Consolidated Statements of Operations for the Three Months Ended      A-5
September 30, 2012 and 2011
Unaudited Adjusted Pro Forma, Adjusted Pro Forma Cash and U.S. GAAP
Consolidated Statements of Operations for the Nine Months Ended       A-6
September 30, 2012 and 2011
Reconciliation of EBITDA to U.S. GAAP Net Income                      A-7
                                                                        

                                                                             
FXCM Inc.
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited )
                  Three Months Ended September   Nine Months Ended
                   30,                             September 30,
                   2012             2011          2012         2011
Revenues
                                                                             
Retail trading        85,237           97,017        255,833       268,234
revenues
Institutional        25,868         7,720       42,908      21,820  
trading revenues
Trading revenue       111,105          104,737       298,741       290,054
                                                                             
Interest Income       990              963           2,910         2,837
Brokerage            (66      )      (93     )    (235    )    (226    )
interest expense
Net interest          924              870           2,675         2,611
income
                                                                             
Other Income         2,919          3,368       7,805       14,228  
                                                                             
Total net            114,948        108,975     309,221     306,893 
revenues
                                                                             
Operating
Expenses
                                                                             
Referring broker      18,708           25,720        58,865        72,253
fees
Compensation and      24,156           22,955        81,175        68,662
benefits
Advertising and       7,509            9,870         23,266        24,375
marketing
Communication         9,600            8,190         26,591        23,559
and technology
Trading costs,
prime brokerage       6,981            2,095         10,187        6,484
and clearing
fees
General and           13,681           11,102        48,891        48,872
administrative
Depreciation and      11,717           5,367         24,761        14,201
amortization
                                                              
                                                                             
Total operating      92,352         85,299      273,736     258,406 
expenses
                                                                             
Operating income      22,596           23,676        35,485        48,487
                                                                             
Other Expense
Interest on          1,158          -           1,698       -       
borrowings
                                                                             
Income before         21,438           23,676        33,787        48,487
income taxes
Income tax           3,598          8,136       4,856       10,756  
provision
Net income            17,840           15,540        28,931        37,731
Net income
attributable to      13,327         12,142      22,971      28,222  
non-controlling
interest
Net income
attributable to      4,513          3,398       5,960       9,509   
FXCM, Inc.
                                                                             
                                                                             
                                                                             
Net Income (in       4,513          3,398       5,960       9,509   
thousands)
                                                                             
Net Income per
Class A Share
Basic and          $  0.17          $ 0.21       $ 0.27       $ 0.56    
Diluted
                                                                             
Average Class A
shares               26,913         16,468      22,416      16,997  
outstanding
                                                                             

                                     A-1


FXCM Inc.
Consolidated Statements of Financial Condition
As of September 30, 2012 and December 31, 2011
(Amounts in thousands except for share data)
(Unaudited)
                                               September 30,  December 31,
                                               2012            2011
                                                                             
Assets
                                                                             
Current assets
Cash and cash equivalents                       $  260,026      $  184,721
Cash and cash equivalents, held for customers      1,278,392       1,046,983
Due from brokers                                   9,823           1,311
Accounts receivables, net                          16,798          17,004
Deferred tax asset - current                       8,094           6,982
Tax receivable                                    3,576          2,016
Total current assets                               1,576,709       1,259,017
                                                                             
Deferred tax asset                                 114,069         88,556
Office, communication and computer equipment,      49,793          39,686
net
Intangible assets and goodwill, net                413,321         80,656
Other assets                                      15,746         19,218
Total assets                                    $  2,169,638    $  1,487,133
                                                                             
Liabilities and Equity
                                                                             
Current liabilities
Customer account liabilities                    $  1,278,392    $  1,046,983
Accounts payable and accrued expenses              77,764          56,723
Credit agreement                                   30,000          -
Note payable                                       87,162
Due to brokers                                     1,100           13,495
Deferred tax liability - current                   7,085           2,241
Due to related parties - pursuant to tax          4,782          3,575
receivable agreement
Total current liabilities                         1,486,285      1,123,017
                                                                             
Deferred tax liability                             18,950          7,044
Due to related parties - pursuant to tax          84,780         63,639
receivable agreement
Total liabilities                                 1,590,015      1,193,700
                                                                             
Commitments and Contingencies
                                                                             
Stockholders' equity
Class A common stock, par value $0.01 per          342             149
share;
3,000,000,000 shares authorized, 34,228,927
and 14,899,391 shares issued
and outstanding as of September 30, 2012 and
December 31, 2011, respectively
Class B common stock, par value $0.01 per          1               1
share;
1,000,000 shares authorized, 100 shares
issued
and outstanding as of September 30, 2012 and
December 31, 2011, respectively
Additional paid-in-capital                         199,888         86,152
Retained earnings                                  10,204          8,977
Accumulated other comprehensive income            1,168          142
Total stockholders' equity, FXCM Inc.              211,603         95,421
Non-controlling interest                           368,020         198,012
Total stockholders' equity                        579,623        293,433
Total liabilities and stockholders' equity      $  2,169,638    $  1,487,133
                                                                             

                                     A-2

Adjusted Pro Forma and Adjusted Pro Forma Cash Results

Throughout the discussion of FXCM Inc.’s results, information is presented on
an Adjusted Pro Forma basis, which is a non-generally accepted accounting
principles (“non-GAAP”) measure. Adjusted Pro Forma results begin with
information prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”), adjusted to exclude
certain items and reflects the conversion of all units of FXCM Holdings, LLC
for shares of Class A common stock of FXCM Inc. FXCM believes that the
disclosed Adjusted Pro Forma measures and any adjustments thereto, when
presented in conjunction with comparable U.S. GAAP measures, are useful to
investors to compare FXCM’s results across several periods and facilitate an
understanding of FXCM’s operating results. The Company uses these measures to
evaluate its operating performance, as well as the performance of individual
employees. These measures should not be considered a substitute for, or
superior to, measures of financial performance prepared in accordance with
U.S. GAAP. The differences between Adjusted Pro Forma and U.S. GAAP results
are as follows:

1. Assumed Exchange of Units of FXCM Holdings, LLC for FXCM Inc. Class A
Shares. As a result of the exchange of FXCM Holdings units, the
non-controlling interest related to these units is converted to controlling
interest. The Company’s management believes that it is useful to provide the
per-share effect associated with the assumed exchange of all FXCM Holdings
units.

2. Stock Based Compensation Expense. Adjustments have been made to the
Adjusted Pro Forma Earnings to eliminate expense relating to stock based
compensation relating to the Company’s initial public offering and
compensation costs associated with the renegotiation of certain employment
contracts. The Company’s management believes it is useful to provide the
effects of eliminating these expenses relating to these one-time items.

3. Acquisition Costs. Adjustments have been made to the Adjusted Pro Forma
Earnings to eliminate certain acquisition related costs. The Company’s
management believes it is useful to provide the effects of eliminating these
expenses.

4. Regulatory Costs. Adjustments have been made to the Adjusted Pro Forma
Earnings to eliminate certain costs associated with a settlement with the
Company’s regulators in the United States and the estimated expense associated
with reimbursement of clients of regarding trading issues at the Company’s
Japanese subsidiary. The Company’s management believes it is useful to provide
the effects of eliminating these expenses of a one-time nature.

5. Income Taxes. Prior to the initial public offering FXCM was organized as a
series of limited liability companies and foreign corporations, and even
following the initial public offering not all of the Company’s income is
subject to corporate-level taxes. As a result, adjustments have been made to
the Adjusted Pro Forma earnings to assume that the Company has adopted a
conventional corporate tax structure and is taxed as a C corporation in the
U.S. at the prevailing corporate rates and the deferred tax assets related to
tax benefits for equity-based compensation awards are realized when the stock
options are exercised. This assumption is consistent with the assumption that
all of FXCM Holdings’ units are exchanged for shares of FXCM Inc. Class A
common stock, as discussed in Item 1 above, as the assumed exchange would
change the tax structure of the Company.

In addition, the Company presents results on an Adjusted Pro Forma Cash basis
where Adjusted Pro Forma results are adjusted for certain non-cash items. The
Company believes Adjusted Pro Forma Cash presentation may be useful to
investors to compare FXCM’s results across several periods and facilitate an
understanding of FXCM’s operating results. The Company uses these measures to
evaluate its operating performance, as well as the performance of individual
employees. The differences between Adjusted Pro Forma Cash and Adjusted Pro
Forma results are as follows:

1. Stock Based Compensation Expense. Additional adjustments have been made to
Adjusted Pro Forma Earnings to eliminate expense relating to stock based
compensation and other non-cash compensation granted subsequent to the
Company’s initial public offering. The Company’s management believes it is
useful to provide the effects of eliminating these non-cash expenses to
evaluate the potential impact on the Company’s cash flow.

2. Depreciation and amortization. Adjustments have been made to the Adjusted
Pro Forma Earnings to eliminate the depreciation of fixed assets and the
amortization of intangible assets. The Company’s management believes it is
useful to provide the effects of eliminating these non-cash expenses to
evaluate the potential impact on the Company’s cash flow.

3. Income Taxes. Adjustments have been made to the Adjusted Pro Forma Earnings
to present the Company’s estimate of tax expense in the next twelve months
under the assumptions regarding taxes discussed in the above. The Company’s
management believes it is useful to provide the effects of eliminating these
expenses to evaluate the potential impact on the Company’s cash flow.

                                     A-4

                                                                                                                                                                                    
FXCM Inc.
Adjusted Pro Forma Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited )
                  Three Months Ended September 30,
                  2012                                                                                                2011                                                                                      
                                                                                                                                                                                                                  
                                                                                                                                                                                                                  
                                                                                                Adjusted                                                                                              Adjusted
                  As                                 Adjusted                                   Pro Forma             As                                  Adjusted                                    Pro Forma
                  Reported      Adjustments          Pro Forma             Adjustments          Cash                  Reported      Adjustments           Pro Forma             Adjustments           Cash
Revenues
                                                                                                                                                                                                                  
Retail trading    $ 85,237         -                 $ 85,237                -                  $ 85,237              $ 97,017        -                   $ 97,017                -                   $ 97,017
revenues
Institutional
trading            25,868       -                 25,868              -                  25,868              7,720       -                   7,720               -                   7,720   
revenues
Trading             111,105        -                   111,105               -                    111,105               104,737       -                     104,737               -                     104,737
revenues
                                                                                                                                                                                                                  
Interest Income     990            -                   990                   -                    990                   963           -                     963                   -                     963
Brokerage
interest           (66     )     -                 (66     )            -                  (66     )            (93     )    -                   (93     )            -                   (93     )
expense
Net interest        924            -                   924                   -                    924                   870           -                     870                   -                     870
income
                                                                                                                                                                                                                  
Other Income       2,919        -                 2,919               -                  2,919               3,368       -                   3,368               -                   3,368   
                                                                                                  -
Total net          114,948      -                 114,948             -                  114,948             108,975     -                   108,975             -                   108,975 
revenues
                                                                                                                                                                                                                  
Operating
Expenses
                                                                                                                                                                                                                  
Referring           18,708         -                   18,708                -                    18,708                25,720        -                     25,720                -                     25,720
broker fees
Compensation        24,156         (2,378 )   ^(1)     21,778                (1,138  )   ^(5)     20,640                22,955        (2,120  )   ^(9)      20,835                (92     )   ^(11)     20,743
and benefits
Advertising and     7,509          -                   7,509                 -                    7,509                 9,870         -                     9,870                 -                     9,870
marketing
Communication       9,600          -                   9,600                 -                    9,600                 8,190         -                     8,190                 -                     8,190
and technology
Trading costs,
prime brokerage     6,981                              6,981                                      6,981                 2,095         -                     2,095                                       2,095
and clearing
fees
General and         13,681         (501   )   ^(2)     13,180                -                    13,180                11,102        (262    )   ^(10)     10,840                -                     10,840
administrative
Depreciation
and                 11,717         -                   11,717                (11,717 )   ^(6)     -                     5,367         -                     5,367                 (5,367  )   ^(6)      -
amortization
                                                                                             -                                                                                              
Total operating    92,352       (2,879 )           89,473              (12,855 )           76,618              85,299      (2,382  )            82,917              (5,459  )            77,458  
expenses
                                                                                                  -
Operating           22,596         2,879               25,475                12,855               38,330                23,676        2,382                 26,058                5,459                 31,517
income
                                                                                                                                                                                                                  
Other expense
Interest on        1,158        -                 1,158               -                  1,158               -           -                   -                   -                   -       
borrowings
                                                                                                                                                                                                                  
Income before       21,438         2,879               24,317                12,855               37,172                23,676        2,382                 26,058                5,459                 31,517
income taxes
Income tax         3,598        3,799     ^(3)    7,397               (230    )   ^(7)    7,167               8,136       796        ^(3)     8,932               (4,830  )   ^(7)     4,102   
provision
Net income          17,840         (920   )            16,920                13,085               30,005                15,540        1,586                 17,126                10,289                27,415
Net income
attributable to    13,327       (8,946 )   ^(4)    4,381               2,682      ^(8)    7,063               12,142      (12,142 )   ^(4)     -                   (12,142 )   ^(8)     -       
non-controlling
interest
Net income
attributable to   $ 4,513      $  8,026            $ 12,539             $ 10,403            $ 22,942             $ 3,398      $ 13,728             $ 17,126             $ 22,431             $ 27,415  
FXCM Inc.
                                                                                                                                                                                                                  
                                                                                                                                                                                                                  
Pro Forma fully exchanged, fully diluted              75,103     ^(12)                         75,103     ^(12)                                        74,449     ^(12)                          74,449  
weighted average shares outstanding
                                                                                                                                                                                                                  
Adjusted Pro Forma net income per fully
exchanged, fully diluted weighted average            $ 0.17                                    $ 0.31                                                   $ 0.23                                     $ 0.37    
shares outstanding
                                                                                                                                                                                                                  

^(1) Represents the elimination of equity-based compensation associated with
the IPO, severance and equity based compensation in connection with the
renegotiation of certain employment contracts in the Company's institutional
and retail businesses.

^(2) Represents the elimination of acquisition-related costs and an adjustment
to reflect a reserve established to settle certain trading system matters with
the Financial Services Agency of Japan.

^(3) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 30.4% and 34.3% for the three months ended September 30,
2012 and 2011, respectively, which includes a provision for U.S. federal
income taxes and assumes the highest statutory rates apportioned to each
state, local and/or foreign jurisdiction. The adjustment assumes full exchange
of existing unitholders FXCM Holdings, LLC units for shares of Class A common
stock of the Company.

^(4) Represents the elimination of the non-controlling interest associated
with the ownership by existing unitholders of FXCM Holdings, LLC (excluding
FXCM, Inc.), as if the unitholders had fully exchanged their FXCM Holdings,
LLC units for shares of Class A common stock of the Company.

^(5) Represents the elimination of equity-based compensation granted
subsequent to the IPO and of compensation costs associated with the
recognition of deferred compensation in connection with the Lucid Market
Trading ("Lucid") which was acquired by the Company on June 18, 2012 (the
"Acquisition") . Pursuant to the terms of the Acquisition, the Company issued
shares of FXCM Inc. Class A common stock to the Lucid sellers subject to
certain liquidity restrictions (the " Lucid Liquidity Restriction"). In
accordance with Accounting Standards Codification, Topic 718, Compensation —
Stock Compensation (“ASC 718”), the fair value of the Lucid Liquidity
Restriction is accounted for as deferred compensation and recognized as
expense over the three year period from closing of the Acquisition.

^(6) Represents the elimination of the depreciation of fixed assets and the
amortization of intangible assets.

^(7) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 19.3% and 13.0.% for the three months ended September
30, 2012 and 2011, respectively, which includes U.S. federal cash taxes and
assumes the highest statutory rates for cash taxes apportioned to each state,
local and/or foreign jurisdiction. The adjustment assumes full exchange of
existing unitholders FXCM Holdings, LLC units for shares of Class A common
stock of the Company.

^(8)Represents an adjustment to reflect the Lucid's non-controlling interest
amortization expense related to the identified intangible assets associated
with the Acquisition.

^(9) Represents the elimination of equity-based compensation associated with
the IPO.

^(10) Represents an adjustment to reflect a reserve established relating to a
settlement with the National Futures Association (the "NFA") and ongoing
discussions with the Commodity Futures Trading Commission (the "CFTC")
regarding trade execution activities. Pursuant to an agreement with a
subsidiary of FXCM Holdings, ("Holdings") certain founding members of Holdings
agreed to reimburse the cost of these matters, up to $16.0 million.
Consequently, there was no impact to FXCM Inc.'s net income for the three
months ended September 30, 2011 as the entire expense was allocated to such
funding members. In July 2011, $16.00 million of additional capital was
provided by the respective founding members.

^(11) Represents the elimination of equity-based compensation granted
subsequent to the IPO.

^(12) Fully diluted shares assuming all unitholders had fully exchanged their
FXCM Holdings, LLC units for shares of Class A common stock of the Company.

                                     A-5

                                                                                                                                                       
FXCM Inc.
Adjusted Pro Forma Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited )
                  Nine Months Ended September 30
                  2012                                                                          2011
                                                                                    Adjusted                                                                            Adjusted
                  As                               Adjusted                         Pro Forma   As                                    Adjusted                          Pro Forma
                  Reported    Adjustments          Pro Forma   Adjustments          Cash        Reported        Adjustments           Pro Forma   Adjustments           Cash
Revenues
                                                                                                                                                                                  
Retail trading    $ 255,833      -                 $ 255,833      -                 $ 255,833   $ 268,234          -                  $ 268,234      -                  $ 268,234
revenues
Institutional
trading            42,908      -                  42,908      -                  42,908     21,820          -                   21,820      -                   21,820
revenues
Trading             298,741      -                   298,741      -                   298,741     290,054          -                    290,054      -                    290,054
revenues
                                                                                                                                                                                  
Interest Income     2,910        -                   2,910        -                   2,910       2,837            -                    2,837        -                    2,837
Brokerage
interest           (235)       -                  (235)       -                  (235)      (226)           -                   (226)       -                   (226)
expense
Net interest        2,675        -                   2,675        -                   2,675       2,611            -                    2,611        -                    2,611
income
                                                                                                                                                                                  
Other Income       7,805       -                  7,805       -                  7,805      14,228          -                   14,228      -                   14,228
                                                                                                                                                                                  
Total net          309,221     -                  309,221     -                  309,221    306,893         -                   306,893     -                   306,893
revenues
                                                                                                                                                                                  
Operating
Expenses
                                                                                                                                                                                  
Referring           58,865       -                   58,865       -                   58,865      72,253           -                    72,253       -                    72,253
broker fees
Compensation        81,175       (18,458)   ^(1)     62,717       (1,845)    ^(5)     60,872      68,662           (6,520)    ^(9)      62,142       (92)       ^(11)     62,050
and benefits
Advertising and     23,266       -                   23,266       -                   23,266      24,375           -                    24,375       -                    24,375
marketing
Communication       26,591       -                   26,591       -                   26,591      23,559           -                    23,559       -                    23,559
and technology
Trading costs,
prime brokerage     10,187       -                   10,187                           10,187      6,484            -                    6,484                             6,484
and clearing
fees
General and         48,891       (4,426)    ^(2)     44,465       -                   44,465      48,872           (16,262)   ^(10)     32,610       -                    32,610
administrative
Depreciation
and                 24,761                           24,761       (24,761)   ^(6)     -           14,201           -                    14,201       (14,201)   ^(6)      -
amortization
                                                                                                                                                               
Total operating    273,736     (22,884)           250,852     (26,606)           224,246    258,406         (22,782)            235,624     (14,293)            221,331
expenses
                                                                                                                                                                                  
Operating           35,485       22,884              58,369       26,606              84,975      48,487           22,782               71,269       14,293               85,562
income
                                                                                                                                                                                  
Other expense
Interest on        1,698       -                  1,698       -                  1,698      -               -                   -           -                   -
borrowings
                                                                                                                                                                                  
Income before       33,787       22,884              56,671       26,606              83,277      48,487           22,782               71,269       14,293               85,562
income taxes
Income tax         4,856       13,633     ^(3)    18,489      (8,953)    ^(7)    9,536      10,756          14,064     ^(3)     24,820      (11,821)   ^(7)     12,999
provision
Net income          28,931       9,251               38,182       35,559              73,741      37,731           8,718                46,449       26,114               72,563
Net income
attributable to    22,971      (17,717)   ^(4)    5,254       2,990      ^(8)    8,244      28,222          (28,222)   ^(4)     -           (28,222)   ^(8)     -
non-controlling
interest
Net income
attributable to   $ 5,960     $  26,968            $ 32,928    $  32,569            $ 65,497    $ 9,509         $  36,940             $ 46,449    $  54,336             $ 72,563
FXCM Inc.
                                                                                                                                                                                  
                                                                                                                                                                                  
Pro Forma fully exchanged, fully diluted            73,548    ^(12)                 73,548    ^(12)                                  74,978    ^(12)                  74,978
weighted average shares outstanding
                                                                                                                                                                                  
Adjusted Pro Forma net income per fully
exchanged, fully diluted weighted average          $ 0.45                           $ 0.89                                            $ 0.62                            $ 0.97
shares outstanding
                                                                                                                                                                                  

^(1) Represents the elimination of equity-based compensation associated with
the IPO, severance and equity based compensation in connection with the
renegotiation of certain employment contracts in the Company's institutional
and retail businesses.

^(2) Represents the elimination of acquisition-related costs and an adjustment
to reflect a reserve established to settle certain trading system matters with
the Financial Services Agency of Japan.

^(3) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 32.6% and 34.8% for the three months ended September 30,
2012 and 2011, respectively, which includes a provision for U.S. federal
income taxes and assumes the highest statutory rates apportioned to each
state, local and/or foreign jurisdiction. The adjustment assumes full exchange
of existing unitholders FXCM Holdings, LLC units for shares of Class A common
stock of the Company.

^(4) Represents the elimination of the non-controlling interest associated
with the ownership by existing unitholders of FXCM Holdings, LLC (excluding
FXCM, Inc.), as if the unitholders had fully exchanged their FXCM Holdings,
LLC units for shares of Class A common stock of the Company.

^(5) Represents the elimination of equity-based compensation granted
subsequent to the IPO and of compensation costs associated with the
recognition of deferred compensation in connection with the Lucid Market
Trading ("Lucid") which was acquired by the Company on June 18, 2012 (the
"Acquisition") . Pursuant to the terms of the Acquisition, the Company issued
shares of FXCM Inc. Class A common stock to the Lucid sellers subject to
certain liquidity restrictions (the " Lucid Liquidity Restriction"). In
accordance with Accounting Standards Codification, Topic 718, Compensation —
Stock Compensation (“ASC 718”), the fair value of the Lucid Liquidity
Restriction is accounted for as deferred compensation and recognized as
expense over the three year period from closing of the Acquisition.

^(6) Represents the elimination of the depreciation of fixed assets and the
amortization of intangible assets.

^(7) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 11.5% and 15.2% for the three months ended September 30,
2012 and 2011, respectively, which includes U.S. federal cash taxes and
assumes the highest statutory rates for cash taxes apportioned to each state,
local and/or foreign jurisdiction. The adjustment assumes full exchange of
existing unitholders FXCM Holdings, LLC units for shares of Class A common
stock of the Company.

^(8) Represents an adjustment to reflect the Lucid's non-controlling interest
amortization expense related to the identified intangible assets associated
with the Acquisition.

^(9) Represents the elimination of equity-based compensation associated with
the IPO.

^(10) Represents an adjustment to reflect a reserve established relating to a
settlement with the National Futures Association (the "NFA") and ongoing
discussions with the Commodity Futures Trading Commission (the "CFTC")
regarding trade execution activities. Pursuant to an agreement with a
subsidiary of FXCM Holdings, ("Holdings") certain founding members of Holdings
agreed to reimburse the cost of these matters, up to $16.0 million.
Consequently, there was no impact to FXCM Inc.'s net income for the three
months ended September 30, 2011 as the entire expense was allocated to such
funding members. In July 2011, $16.00 million of additional capital was
provided by the respective founding members.

^(11) Represents the elimination of equity-based compensation granted
subsequent to the IPO.

^(12) Fully diluted shares assuming all unitholders had fully exchanged their
FXCM Holdings, LLC units for shares of Class A common stock of the Company.

                                     A-6

                                                                                                                      
FXCM Inc.
Reconciliation of EBITDA to Net Income
(In thousands)
(Unaudited )
                                                                           
                 Three Months Ended September 30,                            Nine Months Ended September 30,
                 Adjusted Pro       Adjusted Pro        U.S. GAAP           Adjusted Pro        Adjusted Pro        U.S. GAAP
                 Forma               Forma Cash                              Forma               Forma Cash
                 2012     2011      2012     2011      2012      2011      2012      2011      2012      2011      2012      2011
                                                                                                                                       
Revenues         114,948   108,975   114,948   108,975   114,948   108,975   309,221   306,893   309,221   306,893   309,221   306,893
                                                                                                                                       
Net income
attributable     12,539    17,126    22,942    27,415    4,513     3,398     32,928    46,449    65,497    72,563    5,960     9,509
to FXCM Inc.
Net income
attributable
to               4,381     -         7,063     -         13,327    12,142    5,254     -         8,244     -         22,971    28,222
noncontrolling
interest
Provision for    7,397     8,932     7,167     4,102     3,598     8,136     18,489    24,820    9,536     12,999    4,856     10,756
income taxes
Depreciation,
amortization     12,875    5,367     1,158     -         12,875    5,367     26,459    14,201    1,698     -         26,459    14,201
and interest
expense
EBITDA           37,192    31,425    38,330    31,517    34,313    29,043    83,130    85,470    84,975    85,562    60,246    62,688
                                                                                                                                       

                                     A-7

Contact:

FXCM Inc.
For Media:
Jaclyn Klein, 646-512-4280
Vice-President, Corporate Communications
jklein@fxcm.com
or
For Investors:
Thomas Porac
Vice-President, Investor Relations
investorrelations@fxcm.com