FXCM, one of the biggest foreign exchange brokerages by monthly traded volumes, has announced that it is entering into a partnership agreement with Auckland based brokerage Halifax New Zealand. The move comes just a day after the CEO of Halifax New Zealand Andrew Gibbs announced the appointment of a duo of new non-executive directors – Vincent McCartney and Chris Weir.
Gibbs stated after the appointment was announced: “Vincent’s margin trading, product development and wholesale business development experience will help us grow our product offering and business streams, whilst Chris’ extensive governance experience will be key in ensuring there is independent oversight of the direction of the business.”
The strategic shift which Halifax New Zealand is taking is unusual for a primarily discount stock brokerage. The firm has picked FXCM to launch its offering of foreign exchange and CFDs trading under the regulatory banner of the New Zealand Financial Markets Authority.
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With the move, the company could be opening the way for a new business line for foreign exchange trading providers as discount stock brokers aim at a broader mix of financial markets products. The firm has been focused on offering trading and brokerage services for Australian and international stocks and futures.
Halifax New Zealand will enable its clients to choose between the two most popular trading platforms which FXCM is offering to its own retail clients – Trading Station and MetaTrader 4. The Auckland based brokerage is licensed as an “Issuer” with the New Zealand Financial Markets Authority.
Clients of Halifax New Zealand will gain access to FXCM’s No Dealing Desk offering for trading forex and CFDs. As part of the agreement, FXCM will be transferring its existing clients in New Zealand to Halifax in the coming months. Customers which are due for a transfer will be notified by the brokerage in a timely manner.
The move is aiming to further consolidate the business of FXCM, as the company continues optimizing its cost structure. The financial terms of the deal have not been disclosed.