According to information obtained by Forex Magnates’ reporters from sources close to the matter, Toronto headquartered, veteran forex broker OANDA has submitted a bid of acquisition of ailing UK broker Alpari.
The move would expand the business of OANDA across the UK, the Middle East and North Africa region, where Alpari UK has been performing particularly well. For the time being, no information about the prospective offer put on the table has been obtained by Forex Magnates.
OANDA already boasts global regulation, having subsidiaries in Australia, Canada, Japan, Singapore, US and the UK. What the firm is likely to get from a prospective deal is a reputation as a strong player in these critical times for the retail forex industry.
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Policies which OANDA has, like its low leverage terms, contrast with what Alpari UK has been offering to its clients. The company has been providing a cap on leverage across all jurisdictions where it is operating at 1:50.
This policy has proven to be prudent in light of recent events and several other major retail brokers are taking similar measures in regards to leverage, including Saxo Bank and FXCM. A number of brokerages have increased leverage requirements only in the Swiss franc pairs and particular assets. The full list of changes is updated real-time on the following page.
There has been rampant speculation about which brokerage might be in line to acquire the distressed FCA regulated broker Alpari UK. Yesterday, Alpari UK clients got a note from KPMG, the current administrator of the brokerage.