FXCM has released the slide deck for its upcoming conference call where the broker will explain the details and benefits of its proposed acquisition of rival GAIN Capital. The presentation provides a transaction overview, benefits to GAIN Capital shareholders and clients, and challenges for GAIN if it remains a standalone company.
In terms of shareholder benefits, FXCM is making the case that a merger would lead to significant operating synergies which could lead to $80-$100 million additional cash. Based on this projection they expect the deal to be accretive to earnings for 2014. They also added that the combined brokers would experience “improved balance sheet strength, Liquidity , and trading characteristics”.
As highlighted in their previous press release, FXCM is offering $5.35/share, which is a 25% premium to yesterday’s closing price of GAIN Capital. In the combined company, GAIN shareholders will assume 12.8-16.2% ownership (depending on how much cash is elected to be received by shareholders). The share portion is 0.3996 shares of FXCM stock.
In regards to GAIN shareholders, FXCM is arguing that at $5.35, the offer price is above GAIN’s 52 week high of $5.19 and 80x their 2012 net income. They added that GAIN ‘currently faces operation and financial difficulties due to its scale’ which would be enhanced through the merger. Also, the EPS accretion could lead to greater stock appreciation in the future.
GAIN Capital Trading Since IPO
For FXCM shareholders, the broker explains that stock owners will benefit from the EPS accretion and improved economies of scale due to a 36% increase in revenues and 28% gain in FX client equity. In addition, the combined FXCM and GAIN brand names could ‘enhance overall marketing presence’ (editor’s note – the marketing advantage could over the long run provide the greatest synergies, as GAIN’s ownership of the Forex.com domain provides one of the most cost effective CPC keywords – combined with FXCM’s DailyFX site, the two firms have a massive marketing reach that could be operated more efficiently, after removing overlaps)
In relation to GAIN clients, FXCM is presenting additional choices as an advantage. Clients would be able to choose either the market making or STP account and access to DailyFX trading signals. In terms of platform’s, FXCM stated that GAIN clients will have access to FXCM’s proprietary and MT4 platform. (update - in their conference call, FXCM confirmed that Forex.com clients will be migrating to FXCM's platforms)
Last, FXCM stated that as a standalone company, GAIN will face “insufficient scale in any of its three principal markets to deliver consistent results”, “pending and potential adverse regulatory changes”, “limit free cash to execute long term strategies”, and “lack of liquidity”.
Overall, this game appears to just be getting started. Based on initial reaction from industry executives, the contents of the FXCM presentation (such as GAIN’s ownership of 16.2% of the combined stock, while provide over 30% of revenues), and GAIN’s depressed stock price, the deal is viewed as hostile. In addition, rather than communicate with management, FXCM has taken the rhetoric directly to shareholders.
As such, we would expect that FXCM will probably need to sweeten its offer to convince shareholders to vote in favor of the deal. Also, they seem ready to do as much as they stated “We are highly motivated and prepared to move quickly towards a successful transaction.”
FXCM has released the slide deck for its upcoming conference call where the broker will explain the details and benefits of its proposed acquisition of rival GAIN Capital. The presentation provides a transaction overview, benefits to GAIN Capital shareholders and clients, and challenges for GAIN if it remains a standalone company.
In terms of shareholder benefits, FXCM is making the case that a merger would lead to significant operating synergies which could lead to $80-$100 million additional cash. Based on this projection they expect the deal to be accretive to earnings for 2014. They also added that the combined brokers would experience “improved balance sheet strength, Liquidity , and trading characteristics”.
As highlighted in their previous press release, FXCM is offering $5.35/share, which is a 25% premium to yesterday’s closing price of GAIN Capital. In the combined company, GAIN shareholders will assume 12.8-16.2% ownership (depending on how much cash is elected to be received by shareholders). The share portion is 0.3996 shares of FXCM stock.
In regards to GAIN shareholders, FXCM is arguing that at $5.35, the offer price is above GAIN’s 52 week high of $5.19 and 80x their 2012 net income. They added that GAIN ‘currently faces operation and financial difficulties due to its scale’ which would be enhanced through the merger. Also, the EPS accretion could lead to greater stock appreciation in the future.
GAIN Capital Trading Since IPO
For FXCM shareholders, the broker explains that stock owners will benefit from the EPS accretion and improved economies of scale due to a 36% increase in revenues and 28% gain in FX client equity. In addition, the combined FXCM and GAIN brand names could ‘enhance overall marketing presence’ (editor’s note – the marketing advantage could over the long run provide the greatest synergies, as GAIN’s ownership of the Forex.com domain provides one of the most cost effective CPC keywords – combined with FXCM’s DailyFX site, the two firms have a massive marketing reach that could be operated more efficiently, after removing overlaps)
In relation to GAIN clients, FXCM is presenting additional choices as an advantage. Clients would be able to choose either the market making or STP account and access to DailyFX trading signals. In terms of platform’s, FXCM stated that GAIN clients will have access to FXCM’s proprietary and MT4 platform. (update - in their conference call, FXCM confirmed that Forex.com clients will be migrating to FXCM's platforms)
Last, FXCM stated that as a standalone company, GAIN will face “insufficient scale in any of its three principal markets to deliver consistent results”, “pending and potential adverse regulatory changes”, “limit free cash to execute long term strategies”, and “lack of liquidity”.
Overall, this game appears to just be getting started. Based on initial reaction from industry executives, the contents of the FXCM presentation (such as GAIN’s ownership of 16.2% of the combined stock, while provide over 30% of revenues), and GAIN’s depressed stock price, the deal is viewed as hostile. In addition, rather than communicate with management, FXCM has taken the rhetoric directly to shareholders.
As such, we would expect that FXCM will probably need to sweeten its offer to convince shareholders to vote in favor of the deal. Also, they seem ready to do as much as they stated “We are highly motivated and prepared to move quickly towards a successful transaction.”
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
