UPDATE: BGB Securities Initiates FXCM at Buy on Risk/Reward

BGB Securities initiated coverage on FXCM (NYSE: FXCM) with a Buy rating and a $11 price target.

BGB Securities commented, "We view FXCM as a way to gain access to an eventual macro recovery with limited downside in the interim accorded by maneuverability FXCM's smaller size affords. While currency volatility remains muted and, related, FX transaction volume activity under pressure, the smaller company can effect meaningful growth through alternative means. Cost cutting, customer acquisition and M&A are expected to support growth of ~60% in 2013 compared to low single-digit growth for online broker peers. Growth should continue through a macroeconomic recovery that likely sparks increased currency volatility, supporting a resurgence in volume across a broadened platform."

FXCM closed at $9.96 on Tuesday.