GFT's US retail forex market departure: more details from CEO Gary Tilkin + Q&A
Since GFT’s decision to exit the US retail forex market many eyebrows were raised and clients, rightfully, were asking for
Since GFT’s decision to exit the US retail forex market many eyebrows were raised and clients, rightfully, were asking for more information. We tried to explain what happened however nothing beats an official statement that was given to us by Gary Tilkin, GFT’s CEO:
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“2012 has no doubt been a challenging year for our industry – the volatility we all love has been absent from the markets making it harder for customers to find trading opportunities. Many smaller firms have suffered because of this and reported losses, declines in volumes or slowed growth. Well, not GFT – as one of the leading providers of Forex, CFDs and Spread Betting globally we are here and are stable and secure. Our ethos around integrity and trust has served us well as our clients have remained loyal to us and our trading volumes have, in fact, increased across the year. In times of instability in the markets, GFT remains, as we always have been, strong, stable and highly capitalized.
While other firms may have ‘battened down the hatches’ we’ve continued to innovate and deliver exciting products to our customers and add to our rich history of receiving recognition for our efforts (Shares Award for Best Mobile Platform), etc.
The US retail Forex market represented a small part of our business and I feel it more important to focus on areas where there are no limits and offer enormous opportunity for us. We handled the transition of our existing US retail customer base quickly and efficiently. Plenty of questions have been asked about this move and the impact on our business and remaining customers in other locations. Rest assured, GFT is going forward and will continue to grow and service customers to the same high standard we always have.
2013 is shaping up to be an exciting year for us. We have many regions in which we continue to compete today and global expansion continues to be an ongoing part of our business strategy. We have enormous opportunities to move into new territories and will be aggressively targeting those in 2013. Our institutional business continues to be market leading and this is an area we will continue to build upon next year. Our product development pipeline excites me every day and I can’t wait to bring exciting new products and concepts to market.
I’m proud to say that GFT continues to be financially sound and well capitalized and continues to deliver superb trading experiences to our customers. You’ll be hearing a whole lot more from us in 2013!”
Q&A:
GFT left the US retail forex market last week. What happened?
Based on the long-term economic trending and leverage changes in the US and Japanese markets we made the strategic decision to stop offering retail forex trading from the United States. These coupled with the extremely low level of market volatility drove the decision. The timing was swift and we’re pleased to have provided our accounts a minimum down time from the markets. In addition we believe our Japan and US retail GFT account holders will experience the same high level of service and execution with their new providers.
Should customers be concerned about funds held with another branch of GFT (AU/SG/UK)?
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Funds at GFT are safe, sound, and secure. GFT is well capitalized and meets or exceeds the regional regulatory requirements for operating our business in every region where we will continue to offer services. In addition all account funds in Australia and the UK are held in segregated accounts as per local regulations. I should also add customer funds were always safe in the U.S and Japan as GFT is, as I have said, well capitalized on a global basis with plenty of consolidated capital in excess of requirements.
What does this mean for trading with GFT outside of Japan and the US?
The changes over the last week have no effect whatsoever upon the GFT accounts trading out of Singapore or the United Kingdom. If you’re an Australian account who has transferred to the UK call, text chat or email us to discover all of the exciting trading opportunities available.
Can customers still open with GFT through another office if GFT has transferred their account to GAIN Capital?
That depends upon where you live. If you are not a permanent resident of Japan or the United States please open your account through one of our regional GFT offices today and we’ll have you trading the markets immediately.
Can customers still trade on GFT’s DealBook platform?
All GFT account holders can trade with DealBook. Our mobile solutions will be available shortly. Otherwise trading on our award winning platform DealBook 360 in ongoing everywhere.
Will customers stay on DealBook or will this change?
Customers can absolutely continue to trade on our award winning DealBook suite of platforms.
If customers want to stay with GFT is there any way they can?
This depends upon where you live. You can open a retail trading account with GFT if you are not a permanent resident of Japan or the United States. Call GFT for more details and we can get you trading either with GFT or one of our trusted partners.
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Well that statement makes the story sound like business decision, rather than NFA mobbing them out of the country.
Well that statement makes the story sound like business decision, rather than NFA mobbing them out of the country.
Bottom line- no presence in the 2nd and 3rd largest FX markets in the world ( BIS stats), so when/if volatility does take off again, then that’s a hole.
Bottom line- no presence in the 2nd and 3rd largest FX markets in the world ( BIS stats), so when/if volatility does take off again, then that’s a hole.
NFA just made them take this decision sooner than intended and without any succession for existing clients
NFA just made them take this decision sooner than intended and without any succession for existing clients
i don’t think they don’t have any additional value besides being local, which i guess in some regions is more important that other things…
i don’t think they don’t have any additional value besides being local, which i guess in some regions is more important that other things…
Good Job NFA!!! So who’s next down the List? Also is your creative committee working to propose another set of dumb rules so you can find new ways to ban and fine? Good job you’re wiping out the FX brokers in US, so we can all roll back trading futures, make CME happy and give your organization 4 cents per trade, so you can keep your salaries, bonuses making millions… At the end if your organization name is National FUTURES Association, and not National Forex Association right? Yeah, thanks again…Probably better to trade futures….. it must be much clean business… Read more »
Good Job NFA!!! So who’s next down the List? Also is your creative committee working to propose another set of dumb rules so you can find new ways to ban and fine? Good job you’re wiping out the FX brokers in US, so we can all roll back trading futures, make CME happy and give your organization 4 cents per trade, so you can keep your salaries, bonuses making millions… At the end if your organization name is National FUTURES Association, and not National Forex Association right? Yeah, thanks again…Probably better to trade futures….. it must be much clean business… Read more »
According to Gary this had nothing to do with the NFA – and I quote “Based on the long-term economic trending and leverage changes in the US and Japanese markets we made the strategic decision to stop offering retail forex trading from the United States”
I completely agree with melanie and though GFT are trying to convey a message that business as usual and they are growing, the reality is probably different.
— Asaf.
According to Gary this had nothing to do with the NFA – and I quote “Based on the long-term economic trending and leverage changes in the US and Japanese markets we made the strategic decision to stop offering retail forex trading from the United States”
I completely agree with melanie and though GFT are trying to convey a message that business as usual and they are growing, the reality is probably different.
— Asaf.
cheers, i think it matters everywhere outside US and W.Europe..
cheers, i think it matters everywhere outside US and W.Europe..
keep telling yourself that NFA has nothing to do with that
keep telling yourself that NFA has nothing to do with that
Michael,
How do you reconcile this story with what you published earlier regarding the NFA essentially giving 48 hours notice to GFT? I understand if Gary here is spinning things to provide a sense of stability for his company, but do you not think there would be some mention of the regulators? Just a bit confused.
Michael,
How do you reconcile this story with what you published earlier regarding the NFA essentially giving 48 hours notice to GFT? I understand if Gary here is spinning things to provide a sense of stability for his company, but do you not think there would be some mention of the regulators? Just a bit confused.
I don’t tell myself anything – just reading what the CEO of the company is saying. He saif it’s a strategic decision and if he had said “We like these markers but the NFA pushed us out on a technicality” Then this would have been a different story.
At the end of the day, now that they are out of the US they have no reason to protect or be friendly with the NFA so why not tell the truth? Unless the truth is that this was a business decision like he said.
— Asaf.
I don’t tell myself anything – just reading what the CEO of the company is saying. He saif it’s a strategic decision and if he had said “We like these markers but the NFA pushed us out on a technicality” Then this would have been a different story.
At the end of the day, now that they are out of the US they have no reason to protect or be friendly with the NFA so why not tell the truth? Unless the truth is that this was a business decision like he said.
— Asaf.
he’s not going to mention NFA since all brokers simply fear their wrath, as evident in Forex Club’s case NFA can easily chase you even after you gave up on your license
can’t get all FCMs out of the business, who else will pay the inflated CFTC bills?
if so, it’s about time they addressed this issue…
if so, it’s about time they addressed this issue…
can’t get all FCMs out of the business, who else will pay the inflated CFTC bills?
he’s not going to mention NFA since all brokers simply fear their wrath, as evident in Forex Club’s case NFA can easily chase you even after you gave up on your license
as i told you already, and will tell you again: indeed they took a decision to exit however NFA ‘helped’ them make it long before they planned on doing that in a structured manner. don’t you see that them pulling the plug so hastily, without selling the book and moving clients ahead of the announcement is telling you there’s more to this than just the decision to exit?
as i told you already, and will tell you again: indeed they took a decision to exit however NFA ‘helped’ them make it long before they planned on doing that in a structured manner. don’t you see that them pulling the plug so hastily, without selling the book and moving clients ahead of the announcement is telling you there’s more to this than just the decision to exit?
I´m afraid I´m with the commenters above. He said nothing of NFA. Losing such an important market (the US one) surely would make one really nervous. Gary Tilkin, on the other hand, seemed quite calm. I don´t buy the idea that they were afraid of the NFA. After all, once you´re out of the US market and risk nothing anymore, why not get back at them and disclose everything? Also, why would they withdraw from the Japanese market following a hasty NFA action? Maybe I´m just naive or inexperienced, but NFA´s role here must be very small, if any at… Read more »
I´m afraid I´m with the commenters above. He said nothing of NFA. Losing such an important market (the US one) surely would make one really nervous. Gary Tilkin, on the other hand, seemed quite calm. I don´t buy the idea that they were afraid of the NFA. After all, once you´re out of the US market and risk nothing anymore, why not get back at them and disclose everything? Also, why would they withdraw from the Japanese market following a hasty NFA action? Maybe I´m just naive or inexperienced, but NFA´s role here must be very small, if any at… Read more »
you didn’t read all my explanations above, nfa can get them after withdrawal just like they got forex club after withdrawal. gary decided to be smart, not right
japan accounts were handled from US, they don’t have enough standalone presence in japan to keep managing them without the US backing
you didn’t read all my explanations above, nfa can get them after withdrawal just like they got forex club after withdrawal. gary decided to be smart, not right
japan accounts were handled from US, they don’t have enough standalone presence in japan to keep managing them without the US backing
The NFA is akin to your wife/husband who wants a divorce….they want it sharpish and no warning and will bleed you dry if you don’t say ‘yes’, maybe take you to the cleaners on any excuse whether its proven or not…just for fun.
Also after the divorce if they hear anything untoward being said about them they will bleed you dry again, and make your life a living misery in the process.
If you look up ‘Vindictive’ in the dictionary there is now a reference to the NFA.
The NFA is akin to your wife/husband who wants a divorce….they want it sharpish and no warning and will bleed you dry if you don’t say ‘yes’, maybe take you to the cleaners on any excuse whether its proven or not…just for fun.
Also after the divorce if they hear anything untoward being said about them they will bleed you dry again, and make your life a living misery in the process.
If you look up ‘Vindictive’ in the dictionary there is now a reference to the NFA.
reference and their logo
reference and their logo
yes and no, depends on MT5 capabilities – for now they are not satisfactory nor they provide prime brokerage services like BT or other firms provide in addition to simple bridge
yes and no, depends on MT5 capabilities – for now they are not satisfactory nor they provide prime brokerage services like BT or other firms provide in addition to simple bridge
I agree with both arguments. Michael G for pointing out that NFA bullying is preventing GFT from commenting on the more sensitive issues. I do also think that leaving the USA and Japan (fairly large markets) so hastily and with little warning does make a trader or investor a little nervous. Now to be fair, UK and AUS are still fairly strict regulators to still have to be in compliance with. And I would like to see proof of the notice that the NFA gave to GFT to either comply or get out. That would help make Michael’s rant less… Read more »
I agree with both arguments. Michael G for pointing out that NFA bullying is preventing GFT from commenting on the more sensitive issues. I do also think that leaving the USA and Japan (fairly large markets) so hastily and with little warning does make a trader or investor a little nervous. Now to be fair, UK and AUS are still fairly strict regulators to still have to be in compliance with. And I would like to see proof of the notice that the NFA gave to GFT to either comply or get out. That would help make Michael’s rant less… Read more »
they don’t really migrate, they rather just MARKET their STP/ECN – most of it is just cheap marketing bullshit. it has nothing to do with Virtual Dealer as it only concerns American firms which since have found more subtle ways to limit risk
they don’t really migrate, they rather just MARKET their STP/ECN – most of it is just cheap marketing bullshit. it has nothing to do with Virtual Dealer as it only concerns American firms which since have found more subtle ways to limit risk
ok, so CNH is becoming the emerging markets version of the EURUSD – soon enough we’ll see some crazier crosses like CNH/BRL, etc. Actually, anything other than the USD/CNH is quite uncommon at this point. Part of that is due to lack of demand. But, if you hit the right region the product can work, like at the MICEX where the RUB/CNH product is growing quickly, although $$ amounts are still quite low when compared to the USD/RUB or even USD/EUR
ok, so CNH is becoming the emerging markets version of the EURUSD – soon enough we’ll see some crazier crosses like CNH/BRL, etc. Actually, anything other than the USD/CNH is quite uncommon at this point. Part of that is due to lack of demand. But, if you hit the right region the product can work, like at the MICEX where the RUB/CNH product is growing quickly, although $$ amounts are still quite low when compared to the USD/RUB or even USD/EUR
since we never posted anything of the ‘conspiracy theory’ type i think you can trust our word on it 🙂 in any case i seriously doubt we’ll ever see any official paper as nfa is pretty embarrassed about what happened (they didn’t plan for GFT to exit so hastily but being the immature college undergrads they are they didn’t think this fully through before acting) and GFT obviously doesn’t want to pay millions just for telling us how incompetent the NFA are
since we never posted anything of the ‘conspiracy theory’ type i think you can trust our word on it 🙂 in any case i seriously doubt we’ll ever see any official paper as nfa is pretty embarrassed about what happened (they didn’t plan for GFT to exit so hastily but being the immature college undergrads they are they didn’t think this fully through before acting) and GFT obviously doesn’t want to pay millions just for telling us how incompetent the NFA are