OvalX (formerly ETX Capital) has confirmed that the company is closing down on 17 March 2023. The forex and contracts for differences (CFDs) broker is already sending details to the clients via email, while a customer services executive has confirmed the dates to Finance Magnates.

OvalX Will Shutter on 17 March

“OvalX will be closed as of the 17th March 2023,” the customer service executive confirmed to Finance Magnates’ query. “We are offering for some of our clients to transfer their account to Capital.com.”

“We write to inform you that, regrettably, OvalX will be closing its service for all clients over the coming weeks. Clients have always been at the heart of our business, and this will continue to be the case throughout this process,” an email sent by OvalX to its customers , seen by Finance Magnates, noted.

“To minimize disruption to your trading and enable some continuity of service, we have agreed with Capital.com that if you wish to do so, you can transfer your account, positions, and funds to them. This will enable you to continue trading, but you are under no obligation to accept this option.

The confirmation came a day after the Chief Executive of OvalX, Luca Merolla, called all the staff, confirming that the company is shutting down, Finance Magnates learned from industry sources. He further asked the employees not to reveal the news publicly.

Ongoing Troubles

The ongoing troubles in OvalX were already known to the public, as the company officially confirmed that it is selling its client book to London-rival Capitall.com. Furthermore, the broker laid off a significant portion of its staff last month.

OvalX offered retail and professional traders forex and contracts for differences (CFDs) instruments. The brand was operated by Monecor (London) Limited in London, while Oval Money (Europe) Ltd handled the European operations.

“OvalX, which began life 20 years ago as TradIndex and then ETX Capital, has a long and reputable track record in the UK financial spread-betting and CFD industry,” Capital.com’s Group CEO, Peter Hetherington, said after closing the client book acquisition deal. “This agreement is an important step towards continuing that legacy.”

ETX Capital was rebranded to OvalX in May 2022 after Switzerland-based private equity firm Guru Capital took over the broker in October 2020. Finance Magnates understands that Jump Capital, a US-based venture capital firm, funded the acquisition. As a result, Monecor was controlled by Jump Capital whose partner, Saurabh Sharma, joined Monecor’s Board. Although the original plans under the ownership of Guru Capital were to expand its market footprint and seek investment opportunities in active companies operating within the EMEA and APAC region, the brand shuttered in a couple of years.

The shutdown came after Moncore reported a pre-tax loss of £9.2 million in the financial year 2021, the first full year under the stewardship of Guru, due to staggering investments and macroeconomic events. Its net loss was £6.8 million after a tax credit, falling from a net profit of £428,000 in the previous year.

Activities on the platform also took a hit that year, as trading revenue dropped to £24.1 million from £31.7 million in the previous year because of Brexit. Its spread revenues were down 45 percent year-over-year, but funding revenue increased 39 percent, boosted by its professional client base.