Official documentation published by the US National Futures Association shows that IG Group is preparing to expand into the US market. The company established a US subsidiary and appointed Mr Rupert Simon Toby Osbourne as CEO.
The firm submitted its application for a retail forex dealer on the 28th of November. The company’s address coincides with the group’s active Chicago-based US subsidiary Nadex. IG Group has been the owner of the firm since 2007.
At the time, the London-headquartered firm purchased a company named HedgeStreet for $6 million, renamed it to Nadex and restructured its business operations. At present the firm is one of the very few legal binary options operators in the US, offering its products to retail clients.
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IG Group’s foray into the US market comes at a challenging time for the industry in Europe. Tough onboarding requirements and prospective product bans in some countries are prompting brokers to look for alternative markets.
The US market is notoriously expensive to penetrate is imposes material capital requirements on retail forex dealers. IG Group’s solid financial cushion is providing a comfortable buffer that permits it to enter a market that is currently dominated by two major players: GAIN Capital and OANDA.
Stockbroking companies Interactive Brokers and TD Ameritrade are also holding a small share of the retail forex market, but the main competition at the top is split between the two major traditional forex brokers.
Finance Magnates has reached out to the firm to find out more details about the licensing process which the company engaged in, but at the time of publication hasn’t received an official response.