FXCM announced that it will be assuming the retail client accounts of Alpari US, in a notification issued today. The listed firm was chosen by Alpari US, as it exits the retail FX arena in the United States.
Alpari US has revealed that the 27th of September, the last Friday of the month, as its departure date. FXCM will take over client accounts from the specified date.
Alpari US issued a statement earlier today, providing further details of the reason the company was pulling out of the US market. The statement came after the news release issued by Forex Magnates about the move. In addition, the firm sent out an email to all of its clients, providing details about the withdrawal, and also contained specific questions and answers that could be raised by clients.
One of the most important questions for current clients was answered in the email.
“What will happen to my open positions? Alpari will not transfer open positions to FXCM. All open positions will be liquidated, and all pending orders will be cancelled at close of business at 5:00PM ET on Friday, September 27, 2013. Alpari recommends that you manage all your positions prior to this date. However, FXCM intends to re-establish the positions liquidated by Alpari. Please note, that the re-establishment of positions is limited to positions liquidated by Alpari, and does not include positions manually liquidated by clients, between the time of this notification and the close of business at 5:00PM ET on Friday, September 27, 2013. Additionally, FXCM will only be able to re-establish positions offered by both Alpari and FXCM.”
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The US FX brokerage space has been systematically declining over the last three years since the implemetation of the new rules, which have affected leverage, capital adequacy and order types. Once a flourishing industry, the US FX brokerage sector was home to the world’s largest providers. The regulatory changes have had a negative impact, with a flurry of brokers packing their bags. Alpari US follows in the shadows of FX Solutions, Easy Forex, Forex Club and GFT.
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The $20 million bounty set by the US regulator, has been one of the major factors that has been drowning the FX markets in USA.
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Financial terms of the transaction between FXCM and Alpari US have not been disclosed.