Brokers News

Leading US forex broker FXCM on the way to raise $125 million

Forex Capital Markets (FXCM), the leading forex broker in the US, seems to plan to raise $125 million through the issues of securities. The broker has filed a preliminary prospectus with the US Securities and Exchange Commission (SEC), according to which the broker intends to issues class A common stock, preferred stock, debt securities, depositary shares, purchase contracts, warrants, or units, or rather a mixture of those.


FXCM intends to use the proceeds it plans to raise to hike its capital and refinance its liabilities, as well as to repurchase certain outstanding securities.


The broker’s prospectus, however, is not very informative and precise. Preliminary prospectuses are required by the SEC when a company plans to issue securities and aim to inform investors of a company’s intentions, rather than make an offer. According to the document, FXCM will not issue the securities at once. It “may offer from time to time up to an aggregate of $125,000,000 of any combination” of the above-listed securities. In what combination these securities would be offered is yet to become clear.


Since it is not certain in when the broker will issue for purchase securities, their price will differ depending on factors as the current market prices at the time of sale.


What distribution channels FXCM will use was another thing that the broker did not specify. It may or may not use mediators and it may or may not offer securities directly to buyers. It may choose one or many of the following:


   - on the New York Stock Exchange (including through at the market offerings)
   - in the over-the-counter market
   - in privately negotiated transactions
   - through broker/dealers, who may act as agents or principals
   - through one or more underwriters on a firm commitment or best-efforts basis
   - in a block trade in which a broker/dealer will attempt to sell a block of securities as agent but may position and resell a portion of the block as principle to facilitate the transaction
   - through put or call option transactions relating to the securities
   - directly to one or more purchasers
   - through agents


FXCM noted that even if the securities get registered, this may not result in their being offered or sold.


FXCM (NYSE:FXCM) is one of the biggest providers of online forex and CFD trading, spread betting and related services worldwide, servicing institutional and retail clients alike. Recently, we reported that the broker continues to lead the US retail forex market both by trading volume and client deposits.


The company has units registered and regulated with the relevant authorities in the US, the UK, Australia, and France.

 

TAGS: fxcm  us forex broker  fund raising 

More news about FXCM

Broker Country Regulation Platform Min Deposit Review
Cyprus CySec MT4, MT5, Web $5 Review Website
US, UK, Australia CFTC/NFA, FCA, ASIC MT4, Web,
Mirror Trader,
Trading
Station,
NinjaTrader
$50 Review Website
UK, Australia, Singapore FCA MT4, Web,
ProRealTime,
2Dealer
$1 Review Website
UK, Cyprus FCA, CySec MT4 $5 Review Website
UK, Cyprus FCA, CySEC MT4, MT5, Web,
cTrader,
SuperTrader,
FxPro Markets
$100 Review Website
Seychelles FinaCom MT4 $10 Review Website
UK, Bulgaria FCA, FSC Web $150 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus CySEC MT4, MT5 $300 Review Website
New Zealand FMA MT4 $1000 Review Website
Belize IFSC MT4, Web $500 Review Website

More Forex Brokers News

FXTM teams up with Sahara Force India F1 racing team

Feb 21 2017 09:10:11

Global broker FXTM announced it has entered into partnership with the Sahara Force India Formula One racing team and has become its “Official Forex Partner” for the 2017 F1 season. Read more

Fibo Group launches trading account with gold as a base currency

Feb 17 2017 09:38:07

Forex brokerage Fibo Group has added yet another option to its extensive offerings: its clients can now choose gold (GLD) as a base currency for their MT4 accounts. Read more

FXCM’s Jan metrics: trading volumes up 18% MoM, US operations making up less than 20%

Feb 15 2017 14:42:05

Major forex broker FXCM (NASDAQ:FXCM) reported its trading metrics for January. Read more

Client feedback is driving the development of IG’s new web platform

Feb 15 2017 09:05:36

In a note to its clients, IG, one of the largest forex, CFD and spread betting providers, announced some key features of its new web platform, as well as tools which are currently in development. Read more

FXCM pays $650 K CFTC fine for 2015 undercapitalization

Feb 14 2017 13:13:17

FXCM's woes see no end. After last week's shocking regulatory actions against it that forced it to exit the US forex market, where it was the leader, this week the broker took action to resolve another old regulatory issue and pay a $650 000 fine. Read more

FXCM expects its US exit to trigger international growth

Feb 13 2017 10:10:07

A couple of days after the news about FXCM [NASDAQ:FXCM] leaving US forex market and selling its client base to peer Gain Capital broke, the top forex broker announced key metrics for the nine months, ended 30 September, 2016. According to the data disclosed, FXCM generated a net loss of $13. Read more

Forex.com reports 40% annual drop in January volumes

Feb 13 2017 09:06:16

Forex.com, the OTC retail forex brand of the US brokerage Gain Capital, has posted a 40.1% drop of its average daily volume in January 2017, compared to last January. According to the company report, it amounted to $9. Read more

Gain Capital to pay up to $500 for each FXCM client, conditions apply

Feb 10 2017 08:49:12

Following the regulatory penalties and dramatic exit of the largest US forex broker FXCM from the country and the subsequent announcement that Gain Capital is buying off FXCM's retail forex clients, new details are emerging about the deal. Read more

IG offers Snapchat CFD as grey market trading ahead of eventual March IPO

Feb 09 2017 14:05:32

IG, one of the largest forex, CFD and spread betting (UK only) brokers, announced it is launching CFD trading and spread betting on the eventual IPO of the technology company Snap Inc. that stands behind the Snapchat mobile application. Read more

Plus500 gets South African license

Feb 09 2017 08:18:23

Plus500, one of Europe's leading forex and CFD brokers, obtained a license from South Africa's non-banking financial companies regulator, the Financial Services Board (FSB). It allows Plus500 to operate an online trading platform for retail customers to trade CFDs in South Africa. Read more