Finance Magnates looks at the sad statistics and tries to figure out the causes of forex brokerage demise.
The history of the retail Forex industry starts in the late nineties. Since then, some companies have grown to positions of hegemony while others quickly faded away, leaving no legacy behind. Finance Magnates takes a look at the industry, trying to understand the lifecycle of forex companies and the hazards that they face.
Read the full article in the latest Quarterly Intelligence Report
As with many popular business theories, the lifecycle theory has roots which can be traced. According to popular opinion, the first footprints of this theory can be seen in the works of Mason Haire, who in 1959 published “Modern Organization Theory”. He was one of the first to notice that organizations evolve in a way which can be described as a path, a path which governs the evolution of most organizations. The others were W.W. Rostow and Roger Penrose. Dennis C. Mueller is another expert to whom lifecycle theory is often attributed. In 1972 he published “A Life Cycle Theory of the Firm”.
Today, the lifecycle of a company is believed to have many stages, although experts differ on the exact number. To boil it down to the simplest possible definition, the lifecycle of a company in the forex industry can be described by the following stages: growth, maturity, decline (ending in Bankruptcy).
Bankruptcy is the worst case scenario for any business, and it happens in the FX industry too. Finance Magnates conducted some brief research on this subject which gives a taste of how the FX industry deals with bankruptcy. We used analytical and marketing data to reach our conclusions.
We noticed that in 2014, roughly 1.8% of brokers went out of business, while in the last 2 years, the share of bankrupt brokers has reached a level of around 17% - that’s 1 out of every 6 brokers.
Understanding the typical lifecycle of an FX company remains a challenging task. Firstly, the nature of the offered product is unique, and does not leave much room for brokers to create new products. Secondly, the rules of engagement are very often altered, and regulations force firms to make decisions which would not be taken were the market forces of supply and demand the only drivers. Lastly, the retail FX industry itself is relatively young. Firms are still around which actually invented some of the key products that the industry is based on.
For all the new firms which aim to replicate the success of the largest market players like Plus500 and CMC Markets, there is left only the path of hard work, discipline and competitive trading terms, combined with superb customer care and constant rivalry.
“We definitely saw a few examples when forex and CFD dealers went bankrupt or just closed their operations due to continuing loses. The main problem which can easily kick out an FX dealer is undercapitalization. Increasingly often, people start their FX dealerships, underestimate the real costs and overlap themselves.”- Peter Tatarnikov, Chairman of the Board at The Financial Commission
The history of the retail Forex industry starts in the late nineties. Since then, some companies have grown to positions of hegemony while others quickly faded away, leaving no legacy behind. Finance Magnates takes a look at the industry, trying to understand the lifecycle of forex companies and the hazards that they face.
Read the full article in the latest Quarterly Intelligence Report
As with many popular business theories, the lifecycle theory has roots which can be traced. According to popular opinion, the first footprints of this theory can be seen in the works of Mason Haire, who in 1959 published “Modern Organization Theory”. He was one of the first to notice that organizations evolve in a way which can be described as a path, a path which governs the evolution of most organizations. The others were W.W. Rostow and Roger Penrose. Dennis C. Mueller is another expert to whom lifecycle theory is often attributed. In 1972 he published “A Life Cycle Theory of the Firm”.
Today, the lifecycle of a company is believed to have many stages, although experts differ on the exact number. To boil it down to the simplest possible definition, the lifecycle of a company in the forex industry can be described by the following stages: growth, maturity, decline (ending in Bankruptcy).
Bankruptcy is the worst case scenario for any business, and it happens in the FX industry too. Finance Magnates conducted some brief research on this subject which gives a taste of how the FX industry deals with bankruptcy. We used analytical and marketing data to reach our conclusions.
We noticed that in 2014, roughly 1.8% of brokers went out of business, while in the last 2 years, the share of bankrupt brokers has reached a level of around 17% - that’s 1 out of every 6 brokers.
Understanding the typical lifecycle of an FX company remains a challenging task. Firstly, the nature of the offered product is unique, and does not leave much room for brokers to create new products. Secondly, the rules of engagement are very often altered, and regulations force firms to make decisions which would not be taken were the market forces of supply and demand the only drivers. Lastly, the retail FX industry itself is relatively young. Firms are still around which actually invented some of the key products that the industry is based on.
For all the new firms which aim to replicate the success of the largest market players like Plus500 and CMC Markets, there is left only the path of hard work, discipline and competitive trading terms, combined with superb customer care and constant rivalry.
“We definitely saw a few examples when forex and CFD dealers went bankrupt or just closed their operations due to continuing loses. The main problem which can easily kick out an FX dealer is undercapitalization. Increasingly often, people start their FX dealerships, underestimate the real costs and overlap themselves.”- Peter Tatarnikov, Chairman of the Board at The Financial Commission
A graduate of the Warsaw School of Economics, Sylwester received an MA specializing in finance and banking. As Finance Magnates' research associate and STA certified analyst, he leaves no stone unturned. Sylwester is the previous minority partner of an NFA registered US forex broker, and since 2003, has participated in many forex projects.
iFOREX Adds Saudi and South Korean Equity CFDs as IPO Is Delayed
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
