MG Forex ceases forex operations (updated)
As was first announced on Forex Magnates Linkedin group (access to forex execs only) MG Forex has officially announced that
As was first announced on Forex Magnates Linkedin group (access to forex execs only) MG Forex has officially announced that it is no longer going to offer retail forex and proposes to transfer some accounts to Gain Capital. No surprise there.
“Dear MG Client:
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MG Financial LLC (“MG”) will cease its retail forex operations on September 10, 2010. Effective our close of business at 3 pm on September 10, 2010, some accounts will be transferred to GAIN Capital Group, LLC (“FOREX.com”), others will be closed.
Please note that MG will liquidate any remaining open positions at market rate(s) and close all the outstanding orders at 3pm on the transfer date. MG strongly recommends printing out any statement you may need for tax purposes or otherwise as the MG online trading system will not be available shortly after the transfer date. Should you have any questions about this notice, please contact our client services team by phone, email or chat: We thank you for being a valued customer of MG.”
MG Forex was a very small operation which never rivaled anyone in the US Forex industry and that’s the reason many people probably never even heard of this broker and hence couldn’t care less about this announcement. It’s not surprising then that this, coupled with the new CFTC requirements, prompted this decision.
As one anonymous commenter mentioned on fxstreet:
“Francesc
If you look at the history of MG it says a lot.
Despite being one of the first online FX players along side CMC and having the likes of Drew Niv working for them, they never grew from being a small New York based FX house. MG basically never wanted to grow and became a lifestyle business for its shareholders being run by a handful of directors that had no real ambition or goals to grow. With Drew leaving to start FXCM and Peter Cruddas growing CMC to a point where Goldmans paid 140m for 10%, what other than management was different for MG?”
It’s not clear however what this means for Rosenthall Collins Group, which didn’t announce anything until now. To remind you, MG Forex was formed after a merger between RCG and MG Financial.
Update: Gain’s official statement regarding the acquisition of MG Forex’s business.
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GAIN Capital Acquires MG Financial’s Retail Forex Business
NEW YORK and LONDON, Sept. 13 /PRNewswire/ — GAIN Capital Holdings, Inc., a global provider of online trading services specializing in foreign exchange (forex or FX) and contracts for difference (CFDs), has reached an agreement to acquire certain assets of MG Financial LLC’s U.S. operations. Under the agreement, MG Financial will transfer approximately 4,000 customers to FOREX.com, the retail division of GAIN Capital.
MG Financial has been offering online trading services since 1997. The announcement comes as a result of MG Financial’s decision to exit the retail forex industry and cease operations. MG Financial’s management team intends to pursue other business opportunities in the financial services industry, but no formal plans have been announced.
“MG Financial is one of the oldest and most recognized names in the retail forex industry and has built a solid reputation by providing excellent service to its customers,” said Glenn Stevens, CEO, GAIN Capital. “We will work closely with MG’s team to ensure a smooth transition for their customers, who will now have access to the robust offering available at FOREX.com, including our expanded product suite, competitive dealing spreads, and comprehensive suite of trading tools, research and educational resources.”
MG Financial’s customers were notified of the option to transfer their accounts to FOREX.com on September 1, 2010. The transfer is scheduled to be completed on or about September 13, 2010.
About GAIN Capital
GAIN Capital Holdings, Inc. is a global provider of online trading services, specializing in foreign exchange (forex or FX) and contracts for difference (CFDs). Customers and trading partners in more than 140 countries have utilized the company’s award-winning trading platform which transacts nearly $250 billion per month.
A pioneer in online forex trading, GAIN Capital provides execution, clearing, custody and technology products and services to an institutional client base including asset managers, broker/dealers and other financial services firms. GAIN also operates FOREX.com, one of the largest and best-known brands in the retail forex industry.
With offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo and Seoul. GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC) in the United States, the Financial Services Authority (FSA) in the United Kingdom, the Financial Services Authority (FSA) in Japan, the Securities and Futures Commission (SFC) in Hong Kong, and the Australian Securities and Investments Commission (ASIC) in Australia.
GAIN’s investor group includes private equity firms 3i, VantagePoint Venture Partners, Tudor Ventures, Edison Venture Fund and Cross Atlantic Capital Partners.
For company information, visit http://www.gaincapital.com/ or http://www.forex.com/.
All trade names are the property of their respective owners.
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Hi Michael,
MG Futures is still around though. Maybe RCG have looked at the CFTC’s writing on the wall and figure that currency futures are the future whereas retail forex is history, in the US at least?
Jim
Hi Michael,
MG Futures is still around though. Maybe RCG have looked at the CFTC’s writing on the wall and figure that currency futures are the future whereas retail forex is history, in the US at least?
Jim
this information completley disgusts me, having worked closely with clients and being passionate about our forex products clients perception of forex being a room in a casino strenghens.
im surprised that the nfa doesnt seem to monitor their brokers in a great deal. all this self regualtion is not working.
just recently we had crown forex, brocco and mg as major players in the market who are failing clinets and the industry as whole.
looks like drew made the right move.
this information completley disgusts me, having worked closely with clients and being passionate about our forex products clients perception of forex being a room in a casino strenghens.
im surprised that the nfa doesnt seem to monitor their brokers in a great deal. all this self regualtion is not working.
just recently we had crown forex, brocco and mg as major players in the market who are failing clinets and the industry as whole.
looks like drew made the right move.
MG never failed its clients
as an insider its the NFA and its regulations that have made many brokers close shop. Lobby rules in the US and the Forex market does not have a lobby anywhere near the futures market
MG never failed its clients
as an insider its the NFA and its regulations that have made many brokers close shop. Lobby rules in the US and the Forex market does not have a lobby anywhere near the futures market
I’m not an ex MG customer, but as an outsider I have to say I’m with Michael & Sam on this one, rather than Adil. You can’t seriously put them in the same boat as Crown et. al.
If you’re regulated out of business how should you treat your customers?
Alternatively do you know something the rest of us don’t Adil?
Jim
I’m not an ex MG customer, but as an outsider I have to say I’m with Michael & Sam on this one, rather than Adil. You can’t seriously put them in the same boat as Crown et. al.
If you’re regulated out of business how should you treat your customers?
Alternatively do you know something the rest of us don’t Adil?
Jim
come on mike, you know very well how the back end works.. ovcourse i appreciate your point but bottom line is the nature of trad execution on companies own books has room for issues
come on mike, you know very well how the back end works.. ovcourse i appreciate your point but bottom line is the nature of trad execution on companies own books has room for issues
sam its natural in any product line that once a product is mature the cycle changes, what about the several other firms who have reacted with market changes
sam its natural in any product line that once a product is mature the cycle changes, what about the several other firms who have reacted with market changes