Forex.com Becomes Largest US FX Broker After GAIN Capital Transfers 47k American Clients from FXCM

GAIN Capital Holdings, owner of retail broker Forex.com, announced today it has successfully transferred 47,000 U.S.-based clients from FXCM, which recently rebranded to Global Brokerage Inc., over the weekend.

"In a short period of time, and with the help of the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC), we successfully transferred over 47,000 accounts to FOREX.com.,” said Glenn Stevens, CEO of GAIN Capital Holdings.

Stevens had promised all acquired FXCM clients a ‘seamless transfer’ in his last press statement, made on February 8th.

According to today’s press release, the newly acquired accounts are valued at $142 million.

The successful acquisition of FXCM’s American clientbase makes Forex.com the largest FX brokers in the United States.

On February 9th, GAIN Capital agreed to pay FXCM between $250 and $500 per American client, depending on various conditions. So, based on those figures, GAIN Capital may end up paying FXCM up to $23.5 million for the client list.

At press time, shares of GAIN Capital Holdings (NYSE:GACAP) are trading down 0.62% on the day at $8.00.

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GAIN Capital to Pay Up to $500 per American FXCM Client

Forex Capital Markets (FXCM Inc.) has filed a form with the SEC today that reveals further details on the deal FXCM struck with GAIN Capital Holdings regarding its American client list.

According to the terms of the deal, GAIN Capital has agreed to pay $500 for each client who makes at least one trade in the space of 76 calendar days, within 153 days following the closing date of the Asset Purchase Agreement.

However, If a client executes a trade in the time period between the 77th day to the 153rd day, the price per FXCM client goes down to $250.

While the terms of the deal have been finalized, the agreement has yet to be approved by regulators.

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GAIN Capital CEO Says 'Seamless Transfer' Planned for All American FXCM Traders

GAIN Capital Holdings CEO, Glenn Stevens, released a statement today regarding the recently made deal with FXCM. Stevens said GAIN Capital has taken a leading role in the retail forex industry with the recent acquisition of all U.S.-based clients from FXCM.

According the press release, retail FX broker Forex.com, a subsidiary of GAIN Capital, will be taking on all of the new clients, “We will work very hard to ensure that there is a seamless transfer of clients to our award-winning FOREX.com service," said Stevens.

Unlike FXCM stock, which hit an all-time today, shares of GAIN Capital Holdings (NYSE:GCAP) closed today with a small gain of 0.12% at $8.06. While on Tuesday, GCAP hit a 1.5-year high of $8.49.

GAIN Capital has not yet disclosed how much it paid for FXCM’s American client list.

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FXCM Shares Hit All-Time Low of $2.75 as Investors Continue to Flee; Gain Capital Shares Hit 1.5-Year High

Shares of embattled Forex brokerage FXCM continue to slide lower on Wednesday as investors’ confidence in the long-term viability of the firm continues to erode.

FXCM shares began to slide at the opening bell, hitting an all-time low of $2.75 at 2:45 p.m EST. The stock took out yesterday’s lows of $2.95 when investors dumped 24k+ shares on the market.

Gain Capital Holdings officially announced yesterday it entered into a purchase agreement to acquire FXCM’s U.S.-based clientele for an undisclosed sum, but existing shareholders of FXCM have continued to dispose of their holdings. On top of everything else, several securities law firms have also released press releases in the past 24h, fishing for disgruntled FXCM shareholders and whistleblowers.

While FXCM shares have been crashing over the past two days, shares of Gain Capital Holdings hit a 1.5-year high of $8.59 during yesterday’s trading session, as news of the acquisition spread.

At press time, Gain Capital shares are trading around $8.09!

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