The year was truly transformational for FOREX.com, the US Forex broker that has securities giant GAIN Capital behind its back. We saw a takeover bid by rival FXCM, the purchase of GFT, issuance of convertible notes, rising volumes and share prices, and even a sponsorship deal with a football club. But let's set things in order and take a deeper look at what happened to the leading Forex brokerage in 2013.
For openers, it was in March that we learnt of the content of the so-called 10-k report of FOREX.com – not only we got to know the details of its performance in 2012, but we also noticed that it had voluntarily registered as a swap dealer. This turned out to be a very important move, with tens of other companies following the example set by the broker.
Then came April and the mergers and acquisitions saga started. First off, FXCM launched a bid to take over GAIN Capital for $210.4 million, just to see the bid turned down a couple of weeks later as a proposal that is “undervaluing GAIN”. Instead of surrendering into the arms of FXCM, GAIN decided to acquire GFT – an institutional trading business, with the deal successfully completed on September 24th.
The broker did not only have an image of an acquirer this year – GAIN also divested some assets, including its subsidiary GAIN Securities which was sold (in an all-cash deal) to TradeKing.
However, GAIN looks forward to beefing up its commissions business and plans more acquisitions in this segment, so we should not dismiss the acquirer image just yet. The determination of the company to pursue with this strategy was underlined in November, with GAIN issuing convertible notes whose overall value ended up at $80 million. As we reported, the bulk of the proceeds would be used to fund acquisitions.
One more thing that FOREX.com would remember about 2013 is a number of very robust readings when it comes to performance. For instance, in the second quarter of the year the company saw its net revenues surge 59.7% against the respective period a year ago to $73 million, a record level.
And while many may think that the broker already offers all sorts of trading platforms, it proved us wrong and added one more to the lineup in September. Forex.com became the exclusive provider of Forex trading on tradable, the app-store like platform, in the United States.
Meanwhile, the broker reached out to sports fans and in July announced a sponsorship deal with Manchester City FC in July. Well, it's a multi-facet business and Forex.com has shown a different side.
The pro-sports deal came amid a rough patch for many US Forex brokers as the regulators implemented new rules for capital of futures commission merchants that came into effect on June 30, 2013. However, the requirement for a minimal capital of $20 million did not present a problem for Forex.com and it even managed to shine amid its US rivals in the following months in terms of retail assets under custody.
Operating metrics were also robust throughout the year, with trading volumes rising steadily and thus underlining the wise corporate strategy of the broker. We expect further progress in acquisitions and in operating metrics in the coming year!
| Broker | Country | Regulation | Platform | Min Deposit | Review |
|
US | CFTC, NFA | MT4, Web, in-house |
$50 | Review Website |
|
US | NFA, CFTC | MT4 | $250 | Review Website |
|
Cyprus, UK, Mauritius | CySec, FCA, IFSC | MT4, MT5, Web | $10 | Review Website |
|
Cyprus, Australia | CySec, ASIC | MT4, Web, Mobile app |
$100 | Review Website |
|
Australia, Cyprus | ASIC | MT4, MT5, IRESSTrader |
$100 | Review Website |
|
UK, Cyprus, Australia | FCA, CySec, ASIC | MT4, MT5 | $5 | Review Website |
|
UK, Australia | FCA, ASIC | MT4, Trading Station, NinjaTrader |
$50 | Review Website |
|
UK, Cyprus, UAE, South Africa | FCA, CySEC, DFSA, FSB | MT4, MT5, FxPro Markets, cTrader |
$100 | Review Website |
|
Cyprus | CySEC | MT4, MT5, Web | $1 | Review Website |
|
Belize | IFSC | MT4, MT5 | $100 | Review Website |
|
Cyprus, UK, South Africa, UAE | CySec, FCA, FSCA, DFSA | MT4, MT5, Web | $5 | Review Website |
|
Cyprus, UK | CySEC, FCA | MT4, MT5 | $1 | Review Website |
|
Australia | ASIC | MT4, MT5 | $100 | Review Website |
|
UK | FCA | MT4, Web, MT4 for Mac |
$100 | Review Website |
|
Australia, UK | ASIC, FCA | MT4, MT5, cTrader |
$200 | Review Website |
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