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.
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).