US based online brokerage, TradeKing, has announced that it is acquiring GAIN Capital’s stock trading subsidiary, GAIN Capital Securities. Financial details of the deal were not disclosed. For TradeKing, the acquisition comes after they had merged with Zecco earlier this year to form what they called a “compelling alternative to the mega brokers”. Before today’s deal, the two firms had a previous relationship, with TradeKing’s forex division being an introducing broker to GAIN Capital’s FOREX.Com brand. In addition to forex, TradeKing offers trading in stocks, options, and bonds.
In regards to GAIN Capital, the securities division was a small part of their business, and was headquartered in Cleveland, away from the company’s main New Jersey office. According to TradeKing, after the regulatory finalization of the deal, GAIN Securities customers will be moved to TradeKing’s trading platform, with commission decreases taking effect immediately. However, it was added as both GAIN and TradeKing use the same clearing partner, Apex Clearing Corporation, account numbers will remain the same. Customers will also have access to the TradeKing ‘Trader Network’. The Trader Network is the online brokers proprietary social trading network for clients to share trading ideas.
NEXT BLOCK SOFIA 2.0 + Fabulous Blockchain After-PartyGo to article >>
In a blog post on Trader Network, Don Montanaro, CEO of TradeKing Group welcomed GAIN Securities customers and added that the firm remains committed to taking on the ‘big boys’ as it steps up its consolidation efforts. He added “Having worked with GAIN Capital closely over the past several months to develop TradeKing’s Forex offering, this felt like a natural fit. We’re now working hard to finalize the sale officially within the next 30-60 days”.
Also commenting in the press statement, was Glenn Stevens, CEO of GAIN Capital “We sought to transition the GAIN Securities clients to a firm that shared our commitment to personalized service, innovation and building client trust. As TradeKing’s forex provider, we’re already very familiar with the TradeKing team and offering and knew they would be the ideal firm to deliver on that commitment. Our clients will be in good hands with TradeKing.”