FXCM Acquires Retail Trading Accounts from IBFX's Australian and US Firms
Listed FX and CFD provider, FXCM, has acquired retail clients on the popular MT4 platform from IBFX entities. The multi-asset
Consolidation in the retail FX market continues as FXCM reports the acquisition of trading accounts from IBFX. The US-based firm will acquire retail accounts at two separate divisions at IBFX. The moves comes on the back of difficult trading conditions for brokerage firms amid the record low-volatility as volumes and margins decline.
IBFX, an entity within the Monex Group, will sell its retail MT4 accounts under its US and Australian firm to FXCM. The migration is expected to take place by the end of September.
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Gary Weiss, President of IBFX, commented about the sale in a statement: “For some time now we have supported two forex business lines, MT4 and TradeStation, and have decided that we should focus solely on our award-winning TradeStation platform offerings and not dilute our brand or message.”
According to the official press notification, FXCM reported that it will be acquiring approximately $63 million in client equity and 13,000 accounts.
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FXCM’s CEO, Drew Niv, spoke about the acquisition, he said: “FXCM welcomes the IBFX clients and our team will work hard to ensure a smooth transition.”
The latest development enhances FXCM’s overall position as a leading global provider of trading solutions to retail and institutional investors. The firm states that a significant proportion of clients will be situated in Asia, a region FXCM has been outperforming in against its peers.
Mr Niv added: “A majority of the clients being acquired are located in Asia and have traded through IBFX’s Australian regulated entity. This acquisition would have added 5% to FXCM’s most recently disclosed client equity.”
Financial terms of the transaction were not disclosed in the announcement.
FXCM is yet to report its August operating metrics, however, using July figures as a benchmark, the inclusion of 13,000 accounts will take the total number of trading accounts to 214,794 (estimated).
Does IBFX still have non-MT4 FX clients?
Whats that leave us with now? Three? Maybe four brokers? This is completely absurd to see how far we have fallen.
Great work CFTC/NFA. Lets monopolize the entire retail forex industry in the US.
IBFX australia was a good place to have nano lot sizes with STP trading conditions and fair spreads. Will FXCM plan to create a ‘mini’ mt4 account that will support nano lots?
I suppose the regulators can never win. If they try to stop retail traders from hurting themselves by forcing brokers to lower leverage and clamp down on bad practise – squeezed brokers invent smart but sneaky ways of recouping the lost revenue and traders end up losing out. And the same amount of people get wiped out as before. Only with fewer brokers. The people groan interventionism and monopolisation! But if regulators do nothing, and allow jackpot hunting retail traders to get torn apart clicking buttons with no name on them, the people groan injustice! Some harsh realities need to… Read more »
I have been trading with IBFX for 6 years, and I absolutely will NOT take my business to FXCM. My own experience is that they cannot be trusted.
I’ll be taking my accounts and money to Oanda or somewhere similar.
@TB, The USA is really the only retail forex regulator with this problem. The UK, Aus do not have such an exodus of brokers.
It was sad to see IBFX Au sell off its book of business to FXCM without guaranteeing that mini accounts would still be made available. Oh well.
Jon said: IBFX australia was a good place to have nano lot sizes with STP trading conditions and fair spreads. Will FXCM plan to create a ‘mini’ mt4 account that will support nano lots? – See more at: http://forexmagnates.com/fxcm-acquires-63mln-in-client-equity-and-13000-accounts-from-ibfx-us-aus/#sthash.rmol3fWz.dpuf What will happen to my open positions, stops, limits and pending orders? Existing open positions will remain in place. Positions will be created on your new FXCM account(s) at the original open price. Your equity on your new FXCM account(s) will reflect the same amount prior to the transfer. Resting Orders (Stops, Limits and Pending orders) will not be transferred. Please… Read more »