de | cn | ru

Brokers News

FXCM Sheds Light on Infinium Capital Acquisition

It was just a month ago that we reported of US Forex broker FXCM's change of heart regarding Infinium Capital – the Chicago-based high-speed trading firm. In the beginning of January 2014, the leading FX broker said that it will target the assets of the troubled firm, leaving behind the deal to acquire a $12 million note in the company – a move which, as you know, is essentially purchasing debt.

 

We had been curious to know more about the deal and we got fortunate yesterday at the 15th Annual Credit Suisse Financial Services Forum, as during FXCM's presentation at the event Drew Niv – the broker's chief executive officer, spoke of the acquisition of Infinium's assets.

 

Niv said that the deal with Infinium had two components – the legacy business and the infrastructure part. 

 

The Legacy Business

 

When FXCM had set its sights on Infinium, the company had many different trading desks with most of them loss-making – which is what Niv dubbed as the main reason for the Chicago-based firm going out of business. FXCM is keeping the five very successful teams of Infinium and they will form the so-called “legacy business”. It's expected to be profitable, but the earnings before interest, tax, depreciation and amortization (EBITDA) margin is set to be below that of Lucid Markets. The latter, as some of you may know, has delivered a very solid EBITDA margin (we are talking of 50%!) for FXCM, making the acquisition of Lucid one of the wisest and cash-generative deals in the Forex industry for the past couple of years.

 

 

The Infrastructure

 

FXCM's chief executive sees most benefits coming from the acquisition of Infinium's infrastructure – he reiterated that it's not only one of the best infrastructures for high-speed trading in the United States but also in the world. This is due to a great extent to the huge splashing of money on developing this infrastructure – a policy to which Infinium Capital has adhered over the past few years. The newly acquired infrastructure will be used by (guess whom?) Lucid Markets thus giving extra power to the strong earnings margins of the electronic trading firm.

 

 

We still have no financial details on the deal, but these will probably become clear once FXCM offers some financial statistics for the final quarter of 2013 and the beginning of 2014. By the way, although the company has made a move into the institutional segment, it does not seem to be giving  up on its plans to get that big deal in the retail Forex sector. During the presentation at the forum, FXCM's top management stressed that the cash balance of the broker is solid and allows for pursuing further acquisitions.

 

 

 

About FXCM Inc. 

 

FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange, or FX, trading and related services to retail and institutional customers world-wide. At the heart of FXCM's client offering is No Dealing Desk FX trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, offers Contract for Difference ("CFD") products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with FX on one platform. In addition, FXCM offers educational courses on FX trading and provides free news and market research through DailyFX.com.

 
TAGS: fxcm  fxcm forex broker  fxcm us  us forex broker  infinium capital  infinium chicago  infinium deal  forex deal  forex acquisition  m&a  forex m&a  infinium assets  high speed trading  infrastructure  drew niv   

More news about FXCM

Forex
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, FSC MT4, MT5, Web $10 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA 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
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Brokers News

#FBS2020: FBS Gives Away Lucky Gift Boxes In A New Year Promo

Dec 09 2019 14:36:59

As many companies out there, FBS broker finishes off its year with a New Year promotion for its clients. At the end of 2019, they are offered to create a fancy Thank You e-card for their loved ones and get a gift box full of nice surprises. Read more

Trip For Pip: FBS To Launch A Quest Game For A Trip To London, Tokyo, Or Dubai

Oct 29 2019 14:09:54

FBS broker starts its new marketing campaign, and it has already attracted many eyeballs on social media. The promotion is called “Trip for Pip,” and it is very engaging for several reasons:    a) it’s playable;  b) it features a dream trip for two as the main prize. Read more

HYCM tops the list of brokers with highest percentage of winning clients

Oct 23 2019 12:12:59

The importance of choosing a reliable broker is paramount to trading. Most traders have given a serious thought to the security of their investments and these concerns are increasingly common in this highly competitive market. Read more

FXCM expands its crypto offering with CryptoMajor baskets

Oct 14 2019 14:49:01

  Major forex broker FXCM Group enhances its CFD offering with the launch of CryptoMajor- cryptocurrency baskets, which will allow its clients to trade in to multiple digital assets in one go. Read more

FXTM Launches 30% Welcome Bonus

Aug 06 2019 13:38:53

  As part of FXTM’s mission to provide clients with an exceptional trading experience, the international broker has launched its latest offering – the 30% Welcome Bonus!   This promotion, available under Exinity Limited, boosts your account by an extra 30% when you deposit $100... Read more

XM parent actively prepares for the launch of its US brand Trading.com

Jul 03 2019 14:19:28

  Trading Point Group, the owner and operator of the XM brand, actively prepares for the future launch of its US brand Trading.com. Read more

FBS Invites 20 Best Partners To a VIP Party

Jul 02 2019 15:04:24

Partner parties is a great way to get to know company’s local promoters and celebrate loyalty, motivation, and cooperation. In 2019, FBS broker launches the FBS Stars contest with a round trip flight to Russia’s second largest city and a VIP party invitation as a prize. Read more

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

  Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

  Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

de | cn | ru