Exclusive: OANDA Submits a Bid to Acquire Alpari UK
Forex Magnates' reporters have learned from sources with knowledge of the matter that the latest company looking to acquire the
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.
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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.
Good for them. It would be a great market for Oanda to tap into now that the opportunity has presented itself.
It is the wrong decision to provide a cap of the leverage at 1:50. If they would have a cap at 1:100 everyone understands that in case of the past events but 1:50 is redicolous to earn money with a small retail account. Thank you Pepperstone and JFD Brokers that you are still offering good leverage conditions for retailers.
@Jon Probably one of the reasons why the MSM continues to trash retail OTC trading and the reason why so many traders have been crying hoarse about SNB. Going by your response, seems like your definition of a retail trader is a $100 equity guy with a 1:1000 leverage. Lol!!
High leverage = high risks.
You’re better off playing poker or blackjack given your mindset.
@John No. My Total risk of my account is 1% with every position. Is it BlackJack? I don’t think so buddy…
But with a small account and the need of trading simultan 4 positions (each with 1% risk) I need a broker with a leverage of 1:100. Believe me buddy. I am earning money since nearly ten years and the risk system works for me.
Oanda has been a rather conservative broker from the beginning and has always treated their customers well (at least, they treated me well). The issue with Oanda is that they are a tech company turned business suits…just look at the last and current group of execs and management team who don’t understand the fx industry, let alone M&A. Remember Currensee? They bought this ridiculous copy trading company for probably millions and lost it all within a year. Now they are looking to get into Alpari, a failed company, which according to a recent post on Forex Magnets by a majority… Read more »
Great move!!!
I neither see many deep-pocket middle-east clients staying if Oanda takes on Alpari, they would rather flock toward another of many Russia-Cyprus-UK ventures in the field. It is largely cultural and historical .
If Alpari is bought by Oanda (or someone else) then do former Alpari UK clients awaiting repayment of credit balances automatically then owed the sum due from Oanda or does the special administration process continue?
Thanks