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FXCM Inc. Announces Fourth Quarter 2012 and Full Year 2012 Results

  FXCM Inc. Announces Fourth Quarter 2012 and Full Year 2012 Results

               Releases February 2013 Monthly Operating Metrics

Fourth Quarter Highlights:

  *2012 fourth quarter U.S. GAAP revenues of $108.1 million, down 1% versus
    the same period in 2011
  *U.S. GAAP net income of $3.0 million or $0.11 per fully diluted share
  *Adjusted Pro Forma EBITDA of $29.8 million, up 13% versus the same period
    in 2011
  *Adjusted Pro Forma net income of $9.7 million or $0.13 per fully
    exchanged, fully diluted share
  *Customer equity of $1,190.8 million, up 14% from same period in 2011
  *Active accounts of 170,930, up 5% from the same period in 2011
  *Declared a quarterly dividend of $0.06 per share of Class A common stock

Full-Year Highlights:

  *Full year U.S. GAAP revenues of $417.3 million, up 0.4% compared to 2011
  *U.S. GAAP net income of $9.0 million or $0.37 per fully diluted share
  *Adjusted Pro Forma EBITDA of $112.9 million, up 1% compared to 2011
  *Adjusted Pro Forma net income of $42.6 million or $0.58 per fully
    exchanged, fully diluted share
  *Paid dividends of $0.24 per share of Class A common stock
  *Completed the acquisition of 50.1% of Lucid Markets, a leading non-bank
    market maker and electronic trader in institutional foreign exchange

February 2013 Monthly Metrics Highlights:

  *Record retail customer trading volume of $17.9 billion per day
  *$359 billion in total retail customer trading volume – fourth highest in
    FXCM history

Business Wire

NEW YORK -- March 7, 2013

FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, or FX,
trading and related services, today announced revenues for the quarter ended
December 31, 2012 of $108.1 million, compared to $108.7 million for the
quarter ended December 31, 2011, a decrease of 1%. U.S. GAAP net income was
$3.0 million or $0.11 per fully diluted Class A share for the fourth quarter
2012, compared to $3.2 million or $0.21 per fully diluted Class A share for
the fourth quarter 2011, a decrease of 7% and 48%, respectively. This decrease
is primarily due to $1.8 million or $0.12 per fully diluted share in deferred
tax benefits recognized by FXCM’s Japanese subsidiary in the fourth quarter
2011 U.S. GAAP results.

Under U.S. GAAP, revenues for the year ended December 31, 2012 increased 0.4%
to $417.3 million, compared to $415.6 million for the corresponding period in
2011. U.S. GAAP net income for the year ended December 31, 2012 was $9.0
million, or $0.37 cents per fully diluted Class A share versus $12.7 million
or $0.77 cents per fully diluted Class A share, a decrease of 30% and 52%
respectively.

Adjusted Pro Forma EBITDA for the fourth quarter 2012 was $29.8 million,
compared to $26.4 million for the fourth quarter 2011, an increase of 13%.
Adjusted Pro Forma Net Income was $9.7 million or $0.13 per fully exchanged,
fully diluted share for the fourth quarter 2012, compared to $20.7 million or
$0.28 per fully exchanged, fully diluted share for the fourth quarter 2011, a
decrease of 53% and 54%, respectively. This decrease is primarily due to $8.2
million or $0.11 per fully exchanged, fully diluted share in deferred tax
benefits recognized by FXCM’s Japanese subsidiary in the fourth quarter 2011
adjusted Pro Forma results.

Adjusted Pro Forma EBITDA for the year ended December 31, 2012 was $112.9
million, compared to $111.9 million, for the corresponding period in 2011, an
increase of 1%. Adjusted Pro Forma Net Income for the year ended December 31,
2012 was $42.6 million, or $0.58 per share on a fully exchanged, fully diluted
basis, compared to $67.2 million, or $0.90 per share on a fully exchanged,
fully diluted basis, for the corresponding period in 2011, a decrease of 37%
and 36% respectively.

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 certain equity based compensation
expense granted at the time of FXCM’s initial public offering in December
2010.

“FXCM turned in a solid fourth quarter even though volatility in global FX
markets hit multi-year lows,” said Drew Niv, Chief Executive Officer of FXCM.
“Despite the subdued trading environment we saw for the entire year in 2012,
we are pleased to have positioned our business so that we were still able to
generate $102.1 million in after-tax cash flow from operations,” Niv
continued. “With over $13 trillion in currencies traded at FXCM in 2012, we
have built FXCM today into one of the largest FX players in the world.”

FXCM Inc. today also announced certain key operating metrics for February 2013
for its retail and institutional foreign exchange business. Monthly activities
included:

February 2013 Operating Metrics

Retail Trading Metrics

  *Retail customer trading volume^(1) of $359 billion in February 2013, 1%
    lower than January 2013 and 3% higher than February 2012.
  *Average retail customer trading volume per day of $17.9 billion in
    February 2013, 8% higher than January 2013 and 8% higher than February
    2012.
  *An average of 460,761 retail client trades per day in February 2013, 6%
    higher than January 2013 and 16% higher than February 2012.
  *Tradable accounts^(2) of 190,891 as of February 28, 2013, an increase of
    1,784 or 1% from January 2013, and a decrease of 6,875 or 3% from February
    2012.

Institutional Trading Metrics

  *Institutional customer trading volume^(1) of $132 billion in February
    2013, 14% higher than January 2013 and 4% higher than February 2012.
  *Average institutional trading volume per day of $6.6 billion in February
    2013, 25% higher than January 2013 and 8% higher than February 2012.
  *An average of 17,888 institutional client trades per day in February 2013,
    13% higher than January 2013 and 39% lower than February 2012.

Drew Niv, FXCM’s Chief Executive Officer, commenting on February metrics said
“2013 has so far been a very different year than 2012, with two of our best
months of volume ever in January and February.”

We achieved these results despite only a relatively modest improvement in
currency volatility historically speaking,” Niv added. “This is in large part
a result of FXCM having grown client equity to $1.2 billion, over 4 times
higher than just four years ago.”

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 U.S.
dollars.

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

                                                                            
Consolidated U.S. GAAP Results
                                                                                 
                      Unaudited U.S. GAAP (thousands except per share amounts)
                      Three Months Ended December 31,   Twelve Months Ended December 31,
                        2012       2011     %            2012       2011      %
                                              Change                             Change
                                                                                 
Total net             $ 108,094   $ 108,685   -1     %   $ 417,315   $ 415,578   0.42   %
revenues
                                                                                 
Referring               17,720      20,579    -14    %     76,585      92,832    -18    %
broker fees
Compensation            24,604      26,424    -7     %     105,779     95,086    11     %
and benefits
Other expenses          39,016      34,720    12     %     147,951     138,010   7      %
                                                                                 
Depreciation,
amortization            13,077      5,852     123    %     39,536      20,053    97     %
and interest
expense
                                                                                 
Income before          13,677     21,110    -35    %    47,464     69,597    -32    %
income taxes
                                                                                 
Income tax              4,130       61        6670   %     8,986       10,816    -17    %
provision
                                                                                 
Net Income             9,547      21,049    -55    %    38,478     58,781    -35    %
                                                                                 
Net income
attributable to
non-controlling         5,413       17,822    -70    %     23,131      46,045    -50    %
interest in
FXCM Holdings,
LLC
                                                                                 
Net income
attributable to
non-controlling         1,136       -         0      %     6,389       -         0      %
interest in
Lucid Markets
Trading Limited
                                                                  
Net Income
Attributable to       $ 2,998     $ 3,227     -7     %   $ 8,958     $ 12,736    -30    %
FXCM Inc.
                                                                                 
Net Income (in        $ 2,998     $ 3,227     -7     %   $ 8,958     $ 12,736    -30    %
thousands)
                                                                                 
Net Income per
Class A Share
Basic and             $ 0.11      $ 0.21      -48    %   $ 0.37      $ 0.77      -52    %
Diluted
                                                                                 
Average Class A
shares                 27,750     15,291    81     %    24,086     16,567    45     %
outstanding
                                                                                 

                                                                                                                                          
Consolidated Adjusted Pro Forma Results
                                                                                                                                                         
                      Unaudited
                      Adjusted Pro Forma (thousands        Adjusted Pro Forma Cash            Adjusted Pro Forma (thousands      Adjusted Pro Forma Cash
                      except                              (thousands except per share       except per share amounts)         (thousands
                      per share amounts)                   amounts)                                                              except per share amounts)
                      Three Months Ended December 31,      Three Months Ended December 31,    Twelve Months Ended December 31,   Twelve Months Ended December 31,
                        2012        2011        %            2012        2011      %            2012        2011      %            2012        2011      %
                                                Change                             Change                             Change                             Change
                                                                                                                                                         
Total Revenues        $ 108,094   $ 105,371     3      %   $ 108,094   $ 105,371   3      %   $ 417,315   $ 412,264   1      %   $ 417,315   $ 412,264   1      %
                                                                                                                                                         
Referring               17,720      20,579      -14    %     17,720      20,579    -14    %     76,585      92,832    -18    %     76,585      92,832    -18    %
broker fees
Compensation            21,591      23,681      -9     %     19,814      23,415    -15    %     84,304      85,817    -2     %     81,266      85,555    -5     %
and benefits
Other expenses         39,016     34,720     12     %    39,016     34,720    12     %    143,525    121,748   18     %    143,525    121,748   18     %
                                                                                                                                                         
EBITDA                 29,767     26,391     13     %    31,544     26,657    18     %    112,901    111,867   1      %    115,939    112,129   3      %
                                                                                                                                                         
Depreciation,
amortization            13,077      5,852       123    %     1,065       -                      39,536      20,053    97     %     2,763       -
and interest
expense
                                                                                                                                                         
Income before          16,690     20,539     -19    %    30,479     26,657    14     %    73,365     91,814    -20    %    113,176    112,129   1      %
income taxes
                                                                                                                                                         
Income tax              5,900       (161    )   -3765  %     8,036       12,745    -37    %     24,389      24,660    -1     %     23,380      32,570    -28    %
provision
                                                                                                                                                         
Net Income             10,790     20,700     -48    %    22,443     13,912    61     %    48,976     67,154    -27    %    89,796     79,559    13     %
                                                                                                                                                         
Net income
attributable to
non-controlling         -           -           0      %     -           -         0      %     -           -         0      %     -           -         0      %
interest in
FXCM Holdings,
LLC
                                                                                                                                                         
Net income
attributable to
non-controlling         1,136       -           0      %     3,964       -         0      %     6,389       -         0      %     10,723      -         0      %
interest in
Lucid Markets
Trading Limited
                                                                                                                                      
Net Income
Attributable to       $ 9,654     $ 20,700     -53    %   $ 18,479    $ 13,912    33     %   $ 42,587    $ 67,154    -37    %   $ 79,073    $ 79,559    -1     %
FXCM Inc.
                                                                                                                                                         
Pro forma fully
exchanged,
fully diluted           74,935      73,272      2      %     74,935      73,272    2      %     73,896      74,548    -1     %     73,896      74,548    -1     %
shares
outstanding
                                                                                                                                                         
Earnings Per          $ 0.13      $ 0.28       -54    %   $ 0.25      $ 0.19      32     %   $ 0.58      $ 0.90      -36    %   $ 1.07      $ 1.07      0      %
Share
                                                                                                                                                         

                                                                      
Selected Operating Metrics
                                                                               
                    (Unaudited)                        (Unaudited)
                    Three Months Ended December 31,    Twelve Months Ended December 31,
                      2012        2011      %            2012        2011      %
                                            Change                             Change
                                                                               
Total trading
volume ($ in        $ 886       $ 972       -9     %   $ 3,601     $ 3,775     -5     %
billions)
                                                                               
Total
institutional
trading             $ 223       $ 429       -49    %   $ 1,179     $ 1,171     1      %
volume ($ in
billions)
                                                                               
Total active          170,930     163,094   5      %     170,930     163,094   5      %
accounts
                                                                               
Trading days          64          65        -2     %     259         260       0      %
in period
                                                                               
Daily average         366,015     423,413   -14    %     364,417     381,030   -4     %
trades
                                                                               
Daily average
trades per            2.1         2.7       -23    %     2.1         2.5       -16    %
active
account
                                                                               
Retail
trading
revenue per         $ 95        $ 98        -3     %   $ 94        $ 96        -2     %
million
traded
                                                                               
Total
customer            $ 1,190.8   $ 1,047.0   14     %   $ 1,190.8   $ 1,047.0   14     %
equity ($ in
millions)
                                                                               

Non-GAAP Financial Measures

Adjusted Pro Forma EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro
Forma 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 April 1, 2013 to Class A stockholders of record at
the close of business on March 19, 2013.

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 17412832.

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

                                                            
FXCM Inc.
Consolidated
Statement of
Operations
(In thousands,
except per share
amounts)
(Unaudited)
                       Three Months Ended December   Twelve Months Ended
                       31,                           December 31,
                         2012         2011        2012        2011    
Revenues
                                                                   
Retail trading         $  83,852       $ 95,540      $ 339,685     $ 363,774
revenue
Institutional            19,125       7,088       62,033      28,908  
trading revenue
Trading revenue           102,977        102,628       401,718       392,682
                                                                   
Interest income           661            807           3,571         3,644
Brokerage                (42      )    (103    )    (277    )    (329    )
interest expense
Net interest              619            704           3,294         3,315
income
                                                                   
Other income             4,498        5,353       12,303      19,581  
                                                                   
Total net                108,094      108,685     417,315     415,578 
revenues
                                                                   
Operating
Expenses
                                                                   
Referring broker          17,720         20,579        76,585        92,832
fees
Compensation and          24,604         26,424        105,779       95,086
benefits
Advertising and           7,594          10,522        30,860        34,897
marketing
Communication             10,522         8,310         37,113        31,869
and technology
Trading costs,
prime brokerage           6,748          1,683         16,935        8,167
and clearing
fees
General and               14,152         14,205        63,043        63,077
administrative
Depreciation and          12,012         5,852         36,773        20,053
amortization
                                                                
                                                                   
Total operating          93,352       87,575      367,088     345,981 
expenses
                                                                   
Operating income          14,742         21,110        50,227        69,597
                                                                   
Other Expense
Interest on              1,065        -           2,763       -       
borrowings
                                                                   
Income before             13,677         21,110        47,464        69,597
income taxes
Income tax               4,130        61          8,986       10,816  
provision
Net income                9,547          21,049        38,478        58,781
Net income
attributable to
non-controlling           5,413          17,822        23,131        46,045
interest in FXCM
Holdings, LLC
Net income
attributable to
non-controlling          1,136        -           6,389       -       
interest in
Lucid Markets
Trading Limited
Net income
attributable to        $  2,998       $ 3,227      $ 8,958      $ 12,736  
FXCM, Inc.
                                                                   
                                                                   
                                                                
Net Income             $  2,998       $ 3,227      $ 8,958      $ 12,736  
                                                                   
Net Income per
Class A Share
Basic and              $  0.11        $ 0.21       $ 0.37       $ 0.77    
Diluted
                                                                   
Weighted average
Class A shares           27,750       15,291      24,086      16,567  
outstanding
                                                                   
A-1
                                                                   


FXCM Inc.

Consolidated Statements of Financial Condition

As of December 31, 2012 and December 31, 2011

(Amounts in thousands except for share data)

(Unaudited)

                                        December 31,     December 31,
                                             2012                2011
                                                                  
Assets
                                                                  
Current assets
Cash and cash equivalents                     $ 272,332           $  184,721
Cash and cash equivalents, held                 1,190,762            1,046,983
for customers
Due from brokers                                8,040                1,311
Accounts receivables, net                       5,485                17,004
Deferred tax asset                              10,598               6,982
Tax receivable                                 6,003              2,016
Total current assets                            1,493,220            1,259,017
                                                                  
Deferred tax asset                              117,221              88,556
Office, communication and                       50,316               39,686
computer equipment, net
Intangible assets and goodwill,                 383,446              80,656
net
Other assets                                   20,967             19,218
Total assets                                  $ 2,065,170        $  1,487,133
                                                                  
Liabilities and Equity
                                                                  
Current liabilities
Customer account liabilities                  $ 1,190,762         $  1,046,983
Accounts payable and accrued                    65,431               56,723
expenses
Credit agreement                                85,000               -
Notes payable                                   22,867
Due to brokers                                  14,494               13,495
Deferred tax liability                          7,100                2,241
Due to related parties pursuant                4,979              3,575
to tax receivable agreement
Total current liabilities                       1,390,633            1,123,017
                                                                  
Deferred tax liability                          12,351               7,044
Due to related parties pursuant                87,271             63,639
to tax receivable agreement
Total liabilities                              1,490,255          1,193,700
                                                                  
Commitments and Contingencies
                                                                  
Stockholders' equity
Class A common stock, par value                 347                  149
$0.01 per share;
3,000,000,000 shares authorized,
34,683,599 and 14,899,391 shares
issued
and outstanding as of December
31, 2012 and December 31, 2011,
respectively
Class B common stock, par value                 1                    1
$0.01 per share;
1,000,000 shares authorized, 100
shares issued
and outstanding as of December
31, 2012 and December 31, 2011,
respectively
Additional paid-in-capital                      171,390              86,152
Retained earnings                               11,122               8,977
Accumulated other comprehensive                (1,301    )         142
income
Total stockholders' equity, FXCM                181,559              95,421
Inc.
Non-controlling interest                        393,356              198,012
Total stockholders' equity                     574,915            293,433
Total liabilities and                         $ 2,065,170        $  1,487,133
stockholders' equity

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:

      
           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
      1.   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.
           
           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
      2.   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.
           
           Acquisition Costs. Adjustments have been made to the Adjusted Pro
      3.   Forma Earnings to eliminate certain acquisition related costs. The
           Company’s management believes it is useful to provide the effects
           of eliminating these expenses.
           
           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
      4.   the estimated expense associated with reimbursement of clients
           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.
           
           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
      5.   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.
           
A-3

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:

           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
   1.  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.
           
           Depreciation and amortization. Adjustments have been made to the
           Adjusted Pro Forma Earnings to eliminate the depreciation of fixed
      2.   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.
           
           Income Taxes. Adjustments have been made to the Adjusted Pro Forma
           Earnings to present the Company’s estimate of tax expense in the
      3.   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 December 31,
                       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        $ 83,852        -               $ 83,852              -                $ 83,852            $ 95,540        -                $ 95,540               -                $ 95,540
revenue
Institutional          19,125      -               19,125            -                19,125            7,088       -                7,088              -                7,088   
trading revenue
Trading revenue         102,977       -                 102,977             -                  102,977             102,628       -                  102,628              -                  102,628
                                                                                                                                                                                          
Interest income         661           -                 661                 -                  661                 807           -                  807                  -                  807
Brokerage
interest               (42     )    -               (42     )          -                (42     )          (103    )    -                (103    )           -                (103    )
expense
Net interest            619           -                 619                 -                  619                 704           -                  704                  -                  704
income
                                                                                                                                                                                          
Other income           4,498       -               4,498             -                4,498             5,353       (3,314  ) ^(8)    2,039              -                2,039   
                                                                                               -
Total net              108,094     -               108,094           -                108,094           108,685     (3,314  )         105,371            -                105,371 
revenues
                                                                                                                                                                                          
Operating
Expenses
                                                                                                                                                                                          
Referring               17,720        -                 17,720              -                  17,720              20,579        -                  20,579               -                  20,579
broker fees
Compensation            24,604        (3,013 ) ^(1)     21,591              (1,777  ) ^(4)     19,814              26,424        (2,743  ) ^(9)     23,681               (266   ) ^(10)     23,415
and benefits
Advertising and         7,594         -                 7,594               -                  7,594               10,522        -                  10,522               -                  10,522
marketing
Communication           10,522        -                 10,522              -                  10,522              8,310         -                  8,310                -                  8,310
and technology
Trading costs,
prime brokerage         6,748                           6,748                                  6,748               1,683         -                  1,683                                   1,683
and clearing
fees
General and             14,152        -                 14,152              -                  14,152              14,205                           14,205               -                  14,205
administrative
Depreciation
and                     12,012        -                 12,012              (12,012 ) ^(5)     -                   5,852                            5,852                (5,852 ) ^(5)      -
amortization
                                                                                          -                                                                                     
Total operating        93,352      (3,013 )         90,339            (13,789 )         76,550            87,575      (2,743  )         84,832             (6,118 )          78,714  
expenses
                                                                                               -
Operating               14,742        3,013             17,755              13,789             31,544              21,110        (571    )          20,539               6,118              26,657
income
                                                                                                                                                                                          
Other expense
Interest on            1,065       -               1,065             -                1,065             -           -                -                  -                -       
borrowings
                                                                                                                                                                                          
Income before           13,677        3,013             16,690              13,789             30,479              21,110        (571    )          20,539               6,118              26,657
income taxes
Income tax             4,130       1,770   ^(2)    5,900             2,136    ^(6)    8,036             61          (222    ) ^(2)    (161    )           12,906  ^(6)     12,745  
provision
Net income              9,547         1,243             10,790              11,653             22,443              21,049        (349    )          20,700               (6,788 )           13,912
Net income
attributable to
non-controlling         5,413         (5,413 ) ^(3)     -                   -                  -                   17,822        (17,822 ) ^(3)     -                    -                  -
interest in
FXCM Holdings,
LLC
Net income
attributable to
non-controlling        1,136       -               1,136             2,828    ^(7)    3,964             -           -                -                  -                -       
interest in
Lucid Markets
Trading Limited
Net income
attributable to       $ 2,998     $  6,656          $ 9,654            $ 8,825           $ 18,479           $ 3,227      $ 17,473          $ 20,700           $  (6,788 )         $ 13,912  
FXCM Inc.
                                                                                                                                                                                          
                                                                                                                                                                                          
Pro Forma fully
exchanged,
fully diluted                                          74,935   ^(11)                       74,935   ^(11)                                     73,272   ^(11)                        73,272  
weighted
average shares
outstanding
                                                                                                                                                                                          
Adjusted Pro Forma net income per
fully exchanged, fully diluted                        $ 0.13                                $ 0.25                                              $ 0.28                                 $ 0.19    
weighted average shares
outstanding
                                                                                                                                                                                                    

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

^(2) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 35.4% and (0.8)% for the three months ended December 31,
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 ("Holdings") units for shares of
Class A common stock of the Company.

^(3) Represents the elimination of the non-controlling interest associated
with the ownership by existing unitholders of Holdings (excluding FXCM, Inc.),
as if the unitholders had fully exchanged their Holdings units for shares of
Class A common stock of the Company.

^(4) Represents the elimination of stock-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. 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"). The Lucid Liquidity Restriction is accounted for as
deferred compensation and recognized as expense over the three year period
from closing of the Acquisition.

^(5) Represents the elimination of the depreciation of fixed assets and the
amortization of intangible assets.

^(6) Represents an adjustment to reflect the assumed effective corporate tax
rate of approximately 26.4% and 47.8% for the three months ended December 31,
2012 and 2011, respectively, which includes U.S. federal current income taxes
and assumes the highest statutory rates for current income taxes apportioned
to each state, local and/or foreign jurisdiction. The adjustment assumes full
exchange of existing Holdings unitholders units for shares of Class A common
stock of the Company.

^(7)Represents an adjustment to reflect the Lucid's non-controlling interest
amortization expense related to the identified intangible assets associated
with the acquisition.

^(8)Represents the elimination of an amount related to the remeasurement of
our tax receivable liability pursuant to a tax receivable agreement. This
non-recurring income is attributable to the change in our U.S. federal income
tax rate.

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

^(10) Represents the elimination of stock-based compensation for stock options
granted subsequent to the IPO.

^(11) Fully diluted shares assuming all unitholders had fully exchanged their
Holdings 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)
                   
                        Year Ended December 31,
                        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          $ 339,685        -               $ 339,685        -               $ 339,685     $ 363,774        -                $ 363,774        -                $ 363,774
revenue
Institutional            62,033        -                62,033        -                62,033       28,908        -                 28,908        -                 28,908
trading revenue
Trading revenue           401,718        -                 401,718        -                 401,718       392,682        -                  392,682        -                  392,682
                                                                                                                                                                                      
Interest income           3,571          -                 3,571          -                 3,571         3,644          -                  3,644          -                  3,644
Brokerage
interest                 (277)         -                (277)         -                (277)        (329)         -                 (329)         -                 (329)
expense
Net interest              3,294          -                 3,294          -                 3,294         3,315          -                  3,315          -                  3,315
income
                                                                                                                                                                                      
Other Income             12,303        -                12,303        -                12,303       19,581        (3,314)  ^(9)     16,267        -                 16,267
                                                                                                                                                                                      
Total net                417,315       -                417,315       -                417,315      415,578       (3,314)           412,264       -                 412,264
revenues
                                                                                                                                                                                      
Operating
Expenses
                                                                                                                                                                                      
Referring                 76,585         -                 76,585         -                 76,585        92,832         -                  92,832         -                  92,832
broker fees
Compensation              105,779        (21,475) ^(1)     84,304         (3,038)  ^(5)     81,266        95,086         (9,269)  ^(10)     85,817         (262)    ^(12)     85,555
and benefits
Advertising and           30,860         -                 30,860         -                 30,860        34,897         -                  34,897         -                  34,897
marketing
Communication             37,113         -                 37,113         -                 37,113        31,869         -                  31,869         -                  31,869
and technology
Trading costs,
prime brokerage           16,935         -                 16,935                           16,935        8,167          -                  8,167                             8,167
and clearing
fees
General and               63,043         (4,426)  ^(2)     58,617         -                 58,617        63,077         (16,262) ^(11)     46,815         -                  46,815
administrative
Depreciation
and                       36,773                           36,773         (36,773) ^(6)     -             20,053         -                  20,053         (20,053) ^(6)      -
amortization
                                                                                                                                                                   
Total operating          367,088       (25,901)         341,187       (39,811)         301,376      345,981       (25,531)          320,450       (20,315)          300,135
expenses
                                                                                                                                                                                      
Operating                 50,227         25,901            76,128         39,811            115,939       69,597         22,217             91,814         20,315             112,129
income
                                                                                                                                                                                      
Other expense
Interest on              2,763         -                2,763         -                2,763        -             -                 -             -                 -
borrowings
                                                                                                                                                                                      
Income before             47,464         25,901            73,365         39,811            113,176       69,597         22,217             91,814         20,315             112,129
income taxes
Income tax               8,986         15,403   ^(3)    24,389        (1,009)  ^(7)    23,380       10,816        13,844   ^(3)     24,660        7,910    ^(7)     32,570
provision
Net income                38,478         10,498            48,976         40,820            89,796        58,781         8,373              67,154         12,405             79,559
Net income
attributable to
non-controlling           23,131         (23,131) ^(4)     -              -                 -             46,045         (46,045) ^(4)      -              -                  -
interest in
FXCM Holdings,
LLC
Net income
attributable to
non-controlling          6,389         -                6,389         4,334    ^(8)    10,723       -             -                 -             -                 -
interest in
Lucid Markets
Trading Limited
Net income
attributable to         $ 8,958       $  33,629          $ 42,587      $  36,486          $ 79,073      $ 12,736      $  54,418           $ 67,154      $  12,405           $ 79,559
FXCM Inc.
                                                                                                                                                                                      
                                                                                                                                                                                      
Pro Forma fully
exchanged,
fully diluted                                             73,896  ^(13)                   73,896  ^(13)                                  74,548         ^(13)             74,548  ^(13)
weighted
average shares
outstanding
                                                                                                                                                                                      
Adjusted Pro
Forma net
income per
fully
exchanged,                                               $ 0.58                           $ 1.07                                          $ 0.90                            $ 1.07
fully diluted
weighted
average shares
outstanding
                                                                                                                                                                                      

^(1) Represents the elimination of stock-based compensation associated with
the IPO, severance and stock-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 accrual
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 33.2% and 26.9% for the year ended December 31, 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 ("Holdings") 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 Holdings (excluding FXCM, Inc.),
as if the unitholders had fully exchanged their Holdings units for shares of
Class A common stock of the Company.
                                        
^(5)Represents the elimination of stock-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. 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"). 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 20.7% and 29.0% for the year ended December 31, 2012 and
2011, respectively, which includes U.S. federal current income taxes and
assumes the highest statutory rates for current income taxes apportioned to
each state, local and/or foreign jurisdiction. The adjustment assumes full
exchange of existing Holdings unitholders 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 an amount related to the remeasurement of
our tax receivable liability pursuant to a tax receivable agreement. This
non-recurring income is attributable to the change in our U.S. federal income
tax rate.

^(10) Represents the elimination of stock-based compensation associated with
the IPO.
                                        
^(11) Represents an adjustment to eliminate an expense relating to a
settlement with the National Futures Association and ongoing discussions with
the Commodity Futures Trading Commission regarding trade execution activities.
Pursuant to an agreement with a subsidiary Holdings, certain founding members
of Holdings agreed to reimburse the cost of these matters, up to $16.0 million
plus additional amounts as approved by such founding members. Consequently,
there was no impact to FXCM Inc.'s net income for the year ended December 31,
2011 as the entire expense was allocated to such funding members. Accordingly
$16.3 million of additional capital was provided by the respective founding
members.
                                        
^(12) Represents the elimination of stock-based compensation for stock options
granted subsequent to the IPO.

^(13) Fully diluted shares assuming all unitholders had fully exchanged their
Holdings 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 December 31,                                           Twelve Months Ended December 31,
                      Adjusted Pro Forma        Adjusted Pro Forma      U.S. GAAP               Adjusted Pro Forma      Adjusted Pro Forma      U.S. GAAP
                                                Cash                                                                    Cash
                        2012        2011          2012        2011        2012        2011        2012        2011        2012        2011        2012        2011
                                                                                                                                                            
Revenues              $ 108,094   $ 105,371     $ 108,094   $ 105,371   $ 108,094   $ 108,685   $ 417,315   $ 412,264   $ 417,315   $ 412,264   $ 417,315   $ 415,578
                                                                                                                                                            
Net income
attributable to       $ 9,654     $ 20,700      $ 18,479    $ 13,912    $ 2,998     $ 3,227     $ 42,587    $ 67,154    $ 79,073    $ 79,559    $ 8,958     $ 12,736
FXCM Inc.
Net income
attributable to
non-controlling         -           -             -           -           5,413       17,822      -           -           -           -           23,131      46,045
interest in
FXCM Holdings,
LLC
Net income
attributable to
non-controlling         1,136       -             3,964       -           1,136       -           6,389       -           10,723      -           6,389       -
interest in
Lucid Markets
Trading Limited
Provision for           5,900       (161    )     8,036       12,745      4,130       61          24,389      24,660      23,380      32,570      8,986       10,816
income taxes
Depreciation,
amortization           13,077    5,852      1,065     -         13,077    5,852     39,536    20,053    2,763     -         39,536    20,053
and interest
expense
EBITDA                $ 29,767   $ 26,391    $ 31,544   $ 26,657   $ 26,754   $ 26,962   $ 112,901  $ 111,867  $ 115,939  $ 112,129  $ 87,000   $ 89,650


A-7


Contact:

For Investors and Media:
Jaclyn Klein, 646-432-2463
Vice-President, Corporate Communications and Investor Relations
jklein@fxcm.com