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

NEW YORK--(BUSINESS WIRE)--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.

“FXCM turned in a solid fourth quarter even though volatility in global FX markets hit multi-year lows”

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

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

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

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 Three and Twelve Months Ended December 31, 2012 and 2011	A-1
Unaudited U.S. GAAP Consolidated Statements of Financial Condition As of December 31, 2012 and December 31, 2011	A-2
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 December 31, 2012 and 2011	A-5
Unaudited Adjusted Pro Forma, Adjusted Pro Forma Cash and U.S. GAAP Consolidated Statements of Operations for the Twelve Months Ended December 31, 2012 and 2011	A-6
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 31,						Twelve Months Ended December 31,
		2012			2011			2012			2011
Revenues
Retail trading revenue	$	83,852		$	95,540		$	339,685		$	363,774
Institutional trading revenue		19,125			7,088			62,033			28,908
Trading revenue		102,977			102,628			401,718			392,682
Interest income		661			807			3,571			3,644
Brokerage interest expense		(42	)		(103	)		(277	)		(329	)
Net interest income		619			704			3,294			3,315
Other income		4,498			5,353			12,303			19,581
Total net revenues		108,094			108,685			417,315			415,578
Operating Expenses
Referring broker fees		17,720			20,579			76,585			92,832
Compensation and benefits		24,604			26,424			105,779			95,086
Advertising and marketing		7,594			10,522			30,860			34,897
Communication and technology		10,522			8,310			37,113			31,869
Trading costs, prime brokerage and clearing fees		6,748			1,683			16,935			8,167
General and administrative		14,152			14,205			63,043			63,077
Depreciation and amortization		12,012			5,852			36,773			20,053
Total operating expenses		93,352			87,575			367,088			345,981
Operating income		14,742			21,110			50,227			69,597
Other Expense
Interest on borrowings		1,065			-			2,763			-
Income before income taxes		13,677			21,110			47,464			69,597
Income tax provision		4,130			61			8,986			10,816
Net income		9,547			21,049			38,478			58,781
Net income attributable to non-controlling interest in FXCM Holdings, LLC		5,413			17,822			23,131			46,045
Net income attributable to non-controlling interest in Lucid Markets Trading Limited		1,136			-			6,389			-
Net income attributable to FXCM, Inc.	$	2,998		$	3,227		$	8,958		$	12,736
Net Income	$	2,998		$	3,227		$	8,958		$	12,736
Net Income per Class A Share
Basic and Diluted	$	0.11		$	0.21		$	0.37		$	0.77
Weighted average Class A shares outstanding		27,750			15,291			24,086			16,567
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 for customers		1,190,762			1,046,983
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 computer equipment, net		50,316			39,686
Intangible assets and goodwill, net		383,446			80,656
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 expenses		65,431			56,723
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 to tax receivable agreement		4,979			3,575
Total current liabilities		1,390,633			1,123,017
Deferred tax liability		12,351			7,044
Due to related parties pursuant to tax receivable agreement		87,271			63,639
Total liabilities		1,490,255			1,193,700
Commitments and Contingencies
Stockholders' equity
Class A common stock, par value $0.01 per share;		347			149
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 $0.01 per share;		1			1
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 income		(1,301	)		142
Total stockholders' equity, FXCM Inc.		181,559			95,421
Non-controlling interest		393,356			198,012
Total stockholders' equity		574,915			293,433
Total liabilities and stockholders' equity	$	2,065,170		$	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 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.
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:

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

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

^(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 Cash				U.S. GAAP				Adjusted Pro Forma				Adjusted Pro Forma Cash				U.S. GAAP
		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 FXCM Inc.	$	9,654	$	20,700		$	18,479	$	13,912	$	2,998	$	3,227	$	42,587	$	67,154	$	79,073	$	79,559	$	8,958	$	12,736
Net income attributable to non-controlling interest in FXCM Holdings, LLC		-		-			-		-		5,413		17,822		-		-		-		-		23,131		46,045
Net income attributable to non-controlling interest in Lucid Markets Trading Limited		1,136		-			3,964		-		1,136		-		6,389		-		10,723		-		6,389		-
Provision for income taxes		5,900		(161	)		8,036		12,745		4,130		61		24,389		24,660		23,380		32,570		8,986		10,816
Depreciation, amortization and interest expense		13,077		5,852			1,065		-		13,077		5,852		39,536		20,053		2,763		-		39,536		20,053
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