California-based multi-asset broker MB Trading has notified its clients today that the company will be consolidating its forex trading operations under TradeKing Forex. The Florida-based TradeKing Group acquired all of its former rival’s assets back in August.
At the time of the takeover, Don Montanaro, co-founder and CEO of TradeKing said: “TradeKing and MB Trading clients will have access to the best products, technology and services our two firms have to offer.” It seems MB Trading’s independent forex service is not considered the best TradeKing can offer.
Now the people at MB Trading and TradeKing say they believe this transition offers the best trading solution for their clients. They promise that as clients of TradeKing Forex, former MB clients will receive special top-tier spread pricing and other benefits.
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Another party that will benefit from the move is GAIN Captial, with TradeKing’s forex division being an introducing broker to GAIN Capital’s FOREX.Com brand. Essentially, MB Trading will no longer exist for forex trading as of October 23rd. And all its customers will be handled under TradeKing as the introducing broker.
This is yet another step in the consolidation of the American market as MB Trading is dropping its NFA retail foreign exchange dealers (RFED) license. Privately complaining about suffocating regulations, one broker after another has left U.S shores over the last few years leaving just a handful of players. According to the latest CFTC FCM data, before this move MB Trading was the seventh largest forex broker in the U.S with a 3.3% market share.