In a letter to clients, Cypriot regulated Safecap Investments has announced to its Trade.com clients that it was entering a partnership with Dorinvest SA, a Romanian licensed broker. Under terms of the deal, Dorinvest will assume clients under their regulation as well as take over the Trade.com brand. The letter though, informed that client accounts will not be affected, as they stated that Dorinvest will be “using the same technology and software as used today on the platform of Trade.com. In addition, Dorinvest guarantees to offer you exactly the same pricing levels as you have come to know from Trade.com until now.”

Last month we reported that with the appointment of a new CEO at Safecap, it came at a time that the broker, whose primary brand is Markets.com, was poised to initiate operating changes. At the time of the previous article, Safecap affiliate partners mentioned to Forex Magnates that correspondence between them and Safecap indicated that the broker would be soon launching an off-shore entity to onboard non-EU clients with the Trade.com brand heading that initiative. However, the current announcement from Safecap indicates that they have taken an alternative path in disposing of the brand altogether.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

According to the letter to clients, the partnership will take effect on January 1st, 2014. As Trade.com clients will see no changes to their platforms or pricing, we believe that the deal is structured in that Dorinvest acquires the present and future Trade.com business, while becoming a white label partner of Safecap’s. For Dorinvest, the deal allows them to immediately enter the retail forex market with an existing client base, introducing broker network that currently refers clients to trading brand, as well as sourcing the Trade.com top level domain name. Financial information of the deal is currently unavailable, but just the domain name itself could have a value in excess of $1 million. However, as it appears that Dorinvest SA has now become a client of Safecap, with the broker offering liquidity and technology to Trade.com, the deal may have been consummated with only a small, if anything at all, transfer of funds.

In terms of the forex market, the current deal is similar to others where existing financial firms have partnered with foreign brokers to introduce forex trading to their client bases. An example is the 2010 partnership between SSIF Carpatica and DeltaStock. In that deal, Carpatica clients were provided with DeltaStock’s forex and CFD trading platform and liquidity, while DeltaStock’s customers received access to trade Bucharest Stock Exchange shares.

Forex Magnates reached out to Safecap for comment on the partnership.  As of publishing time, the firm has yet to reply with a comment.