Gain Capital got FXCM’s US clients for $7 mln

Gain Capital got FXCM’s US clients for mln

Gain Capital got FXCM’s US clients for $7 mln

Gain Capital, the largest US retail forex broker, has paid $7 million for the clients of its former rival FXCM US after its dramatic exit from the market in February.
According to a regulatory filing with SEC, the larger part of the sum ($5.1 million) was paid in the first quarter of the year and the rest – in the second.
Back in February, following the CFTC ban and fine for FXCM US, Gain Capital and FXCM entered into an agreement. Under it Gain Capital was going to pay $500 per account for each transferred account that first executes a new trade in the 76-day period immediately following the closing of the account transfer and $250 per account for each transferred account that executed a new trade at some point later.
Earlier this month Gain Capital reported stable H1 and Q2 2017 results. The latter, in particular, have improved significantly in comparison to the first quarter of the year.
Meanwhile, it transpired that Global Brokerage (the former FXCM Inc.) still owes Leucadia Corporation $121 million in principal balance, but has repaid the $300 million it was loaned in January 2015.
Gain Capital Group was established in 2003 and went public on the NYSE in 2010. The company serves retail and institutional clients under the trading brands Forex.com, City Index, GTX, and Gain Capital. It is active in North America, Europe and the Asia Pacific regions. The broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.