Breaking: Gain Capital Will Pay FXCM Up To $500 For Each Transferred Account
- Gain Capital will pay FXCM Inc a maximum of $500 per each transferred client account over a 153-day period.
According to its latest filing with the SEC, FXCM Inc. (NASDAQ:FXCM) has disclosed the final details of its asset purchase agreement with rival Gain Capital Holdings Inc (NYSE:GCAP), pursuant to which the embattled Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker agreed to sell all of its customer accounts in the United States to the brokerage that had rejected its takeover bid in 2013.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
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As Finance Magnates reported earlier this week, FXCM said that it had signed a letter of intent to sell its US customer accounts to Gain Capital Holdings Inc.
Per the disclosed financial terms of the deal, Gain Capital will pay FXCM Inc a maximum of $500 for each transferred client account during a 153-day period that follows the closing date of their agreement, provided that clients stick and trade with Gain after the deal.
Specifically, Gain Capital will pay $500 for each account provided that its owner will execute at least one new trade during the first 76 days of the 153-day period. In addition, FXCM will be paid $250 per client if the transferred account makes a new trade during the remaining days until the agreement period expires.
The CFTC earlier issued an order settling charges against FXCM and some of its executives on the charge of misleading its retail customers into believing that the firm used a ‘no dealing desk’ order Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term model, while in fact FXCM was routing orders through a market maker that was supported and controlled by FXCM.
There were several other charges against the company raised by the NFA. The company has settled the charges with both the CFTC and the NFA. The retail broker and its senior executives have been permanently barred from the industry and can no longer operate in the US. FXCM also agreed to pay a $7 million fine.
Glenn Stevens, CEO of GAIN Capital (NYSE:GCAP), commented earlier on the deal: “We are pleased to continue our role as a leader in a consolidating industry. GAIN has a long history of successful transactions, having completed ten significant acquisitions over the last five years.”
“We will work very hard to ensure that there is a seamless transfer of clients to our award-winning FOREX.com service,” concluded Mr. Stevens.
According to its latest filing with the SEC, FXCM Inc. (NASDAQ:FXCM) has disclosed the final details of its asset purchase agreement with rival Gain Capital Holdings Inc (NYSE:GCAP), pursuant to which the embattled Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker agreed to sell all of its customer accounts in the United States to the brokerage that had rejected its takeover bid in 2013.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
[gptAdvertisement]
As Finance Magnates reported earlier this week, FXCM said that it had signed a letter of intent to sell its US customer accounts to Gain Capital Holdings Inc.
Per the disclosed financial terms of the deal, Gain Capital will pay FXCM Inc a maximum of $500 for each transferred client account during a 153-day period that follows the closing date of their agreement, provided that clients stick and trade with Gain after the deal.
Specifically, Gain Capital will pay $500 for each account provided that its owner will execute at least one new trade during the first 76 days of the 153-day period. In addition, FXCM will be paid $250 per client if the transferred account makes a new trade during the remaining days until the agreement period expires.
The CFTC earlier issued an order settling charges against FXCM and some of its executives on the charge of misleading its retail customers into believing that the firm used a ‘no dealing desk’ order Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term model, while in fact FXCM was routing orders through a market maker that was supported and controlled by FXCM.
There were several other charges against the company raised by the NFA. The company has settled the charges with both the CFTC and the NFA. The retail broker and its senior executives have been permanently barred from the industry and can no longer operate in the US. FXCM also agreed to pay a $7 million fine.
Glenn Stevens, CEO of GAIN Capital (NYSE:GCAP), commented earlier on the deal: “We are pleased to continue our role as a leader in a consolidating industry. GAIN has a long history of successful transactions, having completed ten significant acquisitions over the last five years.”
“We will work very hard to ensure that there is a seamless transfer of clients to our award-winning FOREX.com service,” concluded Mr. Stevens.