FXCM Acquires Retail Trading Accounts from IBFX's Australian and US Firms

Consolidation in the retail FX market continues as FXCM reports the acquisition of trading accounts from IBFX. The US-based firm will acquire retail accounts at two separate divisions at IBFX. The moves comes on the back of difficult trading conditions for brokerage firms amid the record low-Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term as volumes and margins decline.

IBFX, an entity within the Monex Group, will sell its retail MT4 accounts under its US and Australian firm to FXCM. The migration is expected to take place by the end of September.

Gary Weiss, President of IBFX, commented about the sale in a statement: "For some time now we have supported two Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business lines, MT4 and TradeStation, and have decided that we should focus solely on our award-winning TradeStation platform offerings and not dilute our brand or message."

According to the official press notification, FXCM reported that it will be acquiring approximately $63 million in client equity and 13,000 accounts.

FXCM's CEO, Drew Niv, spoke about the acquisition, he said: "FXCM welcomes the IBFX clients and our team will work hard to ensure a smooth transition."

The latest development enhances FXCM's overall position as a leading global provider of trading solutions to retail and institutional investors. The firm states that a significant proportion of clients will be situated in Asia, a region FXCM has been outperforming in against its peers.

Mr Niv added: "A majority of the clients being acquired are located in Asia and have traded through IBFX's Australian regulated entity. This acquisition would have added 5% to FXCM's most recently disclosed client equity."

Financial terms of the transaction were not disclosed in the announcement.

FXCM is yet to report its August operating metrics, however, using July figures as a benchmark, the inclusion of 13,000 accounts will take the total number of trading accounts to 214,794 (estimated).