FXCM to partner with Forex Club on its US clients base

While nothing is public yet and the deal may not have been even signed yet, it seems that FXCM is about to either partner or acquire Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Club's US clients base. Forex Club recently announced that it will downgrade its US license from RFED to FCM and will focus on institutional forex business in the US rather than the retail one.

Forex Club's US clients base isn't big and in June 2012 Forex Club reported to the CFTC that it had about $3.5 million in retail forex obligations and the Q2 2012 profitability report stated that it had about 1,600 active forex traders. In comparison, our estimate of Forex Club's Russian business is 28,000 active forex traders and over $32 million in client equity.

FXCM is the largest Forex Broker Forex Broker In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke Read this Term based in the US and world's second largest in terms of volume (constantly battling out for the first place with Japan's GMO Click Securities) so Forex Club's traders are getting a new safe home. According to same profitability report and CFTC filing FXCM has $84 million in retail forex obligations and over 19,000 active traders in the US. FXCM's global business is about ten times bigger than its US one.

Both brokers declined to comment with FXCM's spokeswoman commenting that "FXCM does not comment on rumors. With respect to partnerships or acquisitions, they are clearly part of our growth strategy and at any given time we may be in discussions with various parties, but as we has said in the past, very few of these discussions result in completed transactions. We limit our comments to completed transactions."