After a number of success stories, a growing number of brokers and other FX-related firms are examining the idea of issuing stocks on exchanges around the world as a means to gather capital or to help the founders “exit” the market and cash out on their endeavors.
Rumors and speculations have circulated in the industry about various brokerages, technology providers and even introducing brokers all said to be looking to list shares on an exchange and become a public company. This trend started when Plus500 raised a large amount of capital on the London Stock Exchange Alternative Investment Market (LSE AIM), coupled with the rise in the price of the stock also made large fortunes for the founders of the CFD broker.
The trend further gained steam after Safecharge very recently showed that FX service providers can launch IPOs bringing in over $100 million as well. As being a publicly traded company not only provides easier access to capital but also has other advantages such as facilitating acquisitions and takeovers of competitors it is only a matter of time until more FX firms will take this route.
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The first FX company since the Safecharge IPO that Forex Magnates can report is heading toward becoming a public company is anyoption. Multiple sources have now confirmed to Forex Magnates that anyoption is on the IPO track. One of the largest Binary Option brokers by trade volume, anyoption is regulated in Cyprus under the name Ouroboros Derivatives Trading Ltd.
anyoption uses a proprietary system, unlike the vast majority of binary brokers that are licensed or ‘white label’ platforms from binary option platform providers like SpotOption or TechFinancials. Some market insiders such as James Azar assume that it is a defining advantage for brokers looking to go public, he commented: “I know a few companies that were looking to IPO but most hit a wall since they were white labels and investors are wary of this model as a long term investment. At the moment only a few brokers can qualify to IPO since they are the only ones with their own technology, sales and marketing.”
In our Q1 2014 Industry Report, Forex Magnates examined what are the potential gains, and costs of launching an IPO for FX brokers and other firms related to the industry. The research of the subject was done based on the now confirmed prediction that more companies will look to follow in the footsteps of Plus500 or Safecharge, and will require this information.
Forex Magnates continues to discuss this issue with many FX firms and will report when more planned IPOs can be confirmed.