AvaTrade to buy most of pioneer broker FXCM in retail FX shake-up
What's the deal? AvaTradeDealroom has a profile for this one. Try Dealroom →, an Ireland- and Israel-based retail foreign exchange (FX) and CFDs broker, has agreed to acquire the majority of FXCMDealroom has a profile for this one. Try Dealroom → Group's business. The deal's value was not disclosed. FXCM, founded in 1999, was a pioneer of forex trading for retail investors.
What's being sold? The parties did not define exactly what "the majority" includes. London-based broker Trade NationDealroom has a profile for this one. Try Dealroom → separately acquired FXCM's UK client base earlier this week, and FXCM also runs the FXCM ProDealroom has a profile for this one. Try Dealroom → institutional and liquidity business. FXCM subsidiaries hold licenses in Cyprus, Australia, South Africa, Israel, and St. Vincent and the Grenadines.
Why now? Jefferies Financial GroupDealroom has a profile for this one. Try Dealroom →, which effectively took over FXCM in 2015, is looking to exit the online retail brokerage business worldwide. Jefferies had provided a rescue loan — later converted to equity — after a surprise Swiss franc move in January 2015 nearly bankrupted FXCM.
What's the endgame? AvaTrade, founded in 2006, offers futures, options and CFDs on forex, commodities, indices, stocks and crypto-related products, plus copy trading. The FXCM deal follows the launch of its AI-powered trading platform and other technology initiatives.
What they're saying: "By combining FXCM's established market presence with AvaTrade's technology and product innovation, we aim to expand our global reach and build a stronger, more diversified trading group," said Daire Ferguson, chief executive officer of AvaTrade.
The signal: The carve-up of FXCM — split between AvaTrade, Trade Nation and others — reflects consolidation in retail trading as Jefferies retreats and larger players absorb one of the sector's oldest brands. Ferguson framed it as an industry "entering a new phase" in which scale, trust and AI increasingly decide who wins clients.
Read more: fxnewsgroup.com
