Another forex broker shuts down its activities in the United States. FX Solutions, of the City Index Group, leaves the country and clients will be able to trade with GAIN Capital (forex.com).
Gain Captial recently received the clients of GFT, which also ceased operations in the US. It will be interesting to see if other brokers also make this move. Here are more details, from the official press release:
BEDMINSTER, N.J., February 22, 2013 /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 U.S.-based retail customer accounts of FX Solutions LLC, an affiliate of City Index Group. Financial terms of the transaction were not disclosed.
GAIN Capital Group LLC, the U.S. regulated entity of GAIN Capital Holdings, Inc., agreed to acquire the U.S.-based retail customer accounts currently held at FX Solutions LLC. The transfer of FX Solutions LLCs’ U.S.-based customers is scheduled for Friday, March 1, 2013, after the close of trading.
“We are pleased to welcome FX Solutions LLCs’ customers to FOREX.com,” said Glenn Stevens, CEO, GAIN Capital. “We will work closely with the team at FX Solutions to ensure no interruption in service and a smooth transition of their customers’ accounts and assets.”
“As part of a global strategic review, FX Solutions LLC, an affiliate of City Index Group, will no longer be offering retail foreign exchange services in the U.S. This will allow the Group to focus its efforts on growing the FX Solutions brand in the Middle East and Asia, where it has already seen tremendous success,” commented Martin Belsham, CEO of City Index Group. “The transfer of FX Solution LLC’s U.S.-based customers to GAIN Capital will ensure they continue to receive an excellent service from a leading US retail FX provider.”
This is GAIN Capital’s second acquisition of U.S.-based retail forex accounts in the past three months. In December 2012, GAIN Capital acquired the U.S.-based retail forex business of GFT Forex (“GFT”).