Gain Capital gets FXCM's US retail forex clients

23 February, 2017

Just a day after FXCM – the largest retail forex broker in the US – lost its NFA and CFTC licenses and got fined $7 million for misleading clients and misinforming the regulators, its main competitor Gain Capital confirmed it is acquiring FXCM's US retail clients. The deal was reached within a day after Gain Capital said it had signed a letter of intent in that regard and is planning to complete the transfer to its retail brand Forex.com within February. 

Now the deal is confirmed, but the financial details have not been disclosed. The transaction is subject to final regulatory approval.  It is expected to close before the end of February.  

"We are excited to welcome customers of FXCM's US operations to our award-winning Forex.com service," said Glenn Stevens, CEO, Gain Capital.  "They will become part of one of the largest and most well-capitalized providers of retail FX trading services globally.”

According to company data, for the 3 months ended December 31, 2016, average daily volume from customers of FXCM's US operations was approximately $2.4 billion. In comparison, the average daily volume of Gain Capital's retail over-the-counter operations in December was $8.6 billion, but this includes all international units. 

Gain Capital is one of the major retail forex and CFD brokers in the world. It is currently regulated in eight jurisdictions, with approximately 140,000 customers and over $1.5 billion in assets.  In addition to its US regulated retail forex business, Gain operates regulated retail trading operations under the brands Forex.com and City Index in the United Kingdom, Japan, Hong Kong, Australia, Singapore, Grand Cayman and Canada. Gain Capital also has a US-based retail futures business and the institutional trading platform GTX. 

Meanwhile, an FXCM filing with SEC revealed that following the ban to operate on the US market FXCM will terminate 150 US jobs, or 18% of its employees. The withdrawal from the US is expected free up to $52 million of FXCM's capital, which will be used to repay parts of the loan to Leucadia National Corporation. 

Following the latest developments, FXCM's shares lost 49.64% of their value on February 7 and cost  $3.45 on market close.  


Source link  

In the past 24 hours Bitcoin has gained 3.24% and reached $3605.80750733. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4129% and is now at $1.1327. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -17.58% and is now at $94.0707046051. Have the most popular cryptocurrencies compared online 24/7.


Top Forex Newsmakers



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%


Forex Articles
  


Share: