de | cn | ru

Brokers News

Successful Forex Deal: GAIN Reveals Details of GFT's Performance

On September 24, 2013, GAIN Capital - the financial giant behind FOREX.com, announced the completion of the acquisition of Global Futures & Forex, Ltd. (GFT) – a Michigan-based Forex business. And, in accordance with regulations, GAIN has just published the performance metrics of the recently acquired business for the years to the end of December 2010, 2011 and 2012, as well as for the six months to the end of June 2013. 
 
The picture that the results paint shows us GAIN has made a wise move in acquiring GFT, with the institutional segment of the business being particularly robust throughout the period covered by the reports. 
 
But for starters, let's remind you that for several quarters in a row, GAIN has been pressing ahead with the strategy of the three pillars: building its business across retail, institutional Forex and exchange-based trading. The acquisition of GFT was a part of the company's efforts to beef up its institutional Forex segment – thereby gaining access to stickier clientele and stickier revenues. 
 
For that matter, let's look at how GFT's institutional business performed. I know that many would have simply looked at the key performance metrics like net profit and revenues and, indeed, they dropped from 2010 to the end of 2012. In 2010, GFT recorded a net profit of $10.4 million, while in 2011 this turned into a $3.8 million loss and in 2012 the fortunes of the company soured and it posted a net loss of $34.1 million. Net trading income also staged a drop – in 2012 it was only $88.4 million, compared with $136.7 million in 2011. 
 
And now you must be thinking: “Big deal! GAIN simply bought an ailing business in order to get a grip over some extra clients.” But I'll prove you wrong, as the management of GAIN knows what to look at, when it aims to buy a business. And obviously they observed the steady performance of the commission-based business. The income from commissions has been steeply rising – in 2010 it equaled $2.1 million; in 2011 it rose to $2.5 million; and in 2012 it jumped to $6.9 million. This must have impressed GAIN. In the first six months of 2013, this segment continued to thrive, with commission-based income at $3.34 million, up from $2.25 million a year earlier. Meanwhile, the trading revenues have also improved on an annual basis. We are not talking about a struggling business entity anymore.
 
The real effects from the acquisition on GAIN's performance will be visible when the company reports its metrics for the fourth quarter of 2014. Chances are we'll see some substantial contribution to the institutional segment of GAIN thanks to GFT, as the company apparently managed to carry out a successful acquisition.
 
 

About GAIN Capital

 
GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN's innovative trading technology provides market access and highly automated trade execution services across multiple asset classes to a diverse client base of retail and institutional investors.
 
GAIN's businesses include FOREX.com, which provides retail traders around the world access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices; GTX, a fully independent FX ECN for hedge funds and institutions; OEC, an innovative online futures broker; and GAIN Securities, Inc. (member FINRA/SIPC), a licensed U.S. broker-dealer.
 

GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America,Europe and the Asia Pacific regions.  For further company information, visit www.gaincapital.com. 

TAGS: gain capital  forex.com. forex.com broker  us forex broker  gft  gft acquisition  forex m&a  forex acquisition  institutional forex  forex performance  gft performance  revenues  profit  commissions 

More news about Forex.com

Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia ASIC 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
UK, Cyprus, Dubai FCA, CySEC, DFSA MT4, MT5, Web,
PrimeTrader
$100 Review Website

More Forex Brokers News

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

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD  in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

  Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

de | cn | ru