U.S. based forex broker GFT is closing its retail business in the U.S. Its clients will be transferred to GAIN Capital (forex.com), which has acquired the retail business of the company. The transfer happens on December 7th 2012.
While consolidation is natural part of a maturing industry, the closure of GFT in the US is somewhat worrying. GFT has seen better days in the US: it had the highest profitability rate in Q1. It is the third exit of a broker from the USA in 2012. For more details, here is the official press release:
BEDMINSTER, N.J., December 6, 2012 /PRNewswire/ — GAIN Capital Holdings, Inc. (“GAIN”) (NYSE: GCAP), a leading global provider of online trading services, announced today that it has reached an agreement to acquire the US-based retail forex business of GFT Forex (“GFT”), pending regulatory approval. Financial terms of the transaction were not disclosed.
GAIN Capital Group LLC, the US regulated entity of GAIN Capital Holdings, Inc., agreed to acquire the retail customer accounts currently held at GFT’s US regulated subsidiary. The transfer of GFT’s US-based customers is scheduled for Friday, December 7, 2012, after the close of trading.
“We are pleased to be in a position to offer GFT’s US-based retail customers the ability to continue trading forex with an established US regulated firm, with no interruption in service,” said Glenn Stevens, CEO, GAIN Capital. “We will work closely with the team at GFT to ensure a smooth transition of their customer’s accounts and assets to our retail division, FOREX.com.”
“GFT is pleased to transfer our US-based retail forex accounts to GAIN Capital,” stated Gary L. Tilkin, Chairman of GFT. “GAIN is one of our industry’s oldest and most respected companies and we’re confident that our accounts will receive the same high level of service and trading execution that they’ve experienced with GFT.”