EC Markets Group Limited (previously known as GCM Prime), an FCA-registered brokerage, resumed its operations last year, generating an annual turnover of $187,000 by the end of December 2022.

GCM Prime Reenters the Market under New Ownership

However, it continued to be a loss-making company with an operating loss of $660,140, compared to $779,996 in the previous year. The London-based company made a gross loss with a sales cost of $191,207. Further, administrative expenses of $656,433 were higher than the previous year’s figures of $643,372, pushing the losses even deeper.

The broker ended the year netting a loss of $659,579, following a minimal interest income of $565.

Under its FCA license, EC Markets offers the margin spot 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 and contracts for differences (CFDs) instruments of precious metals, indices, and crude oil.

“The Company’s principal activity during the period continued to be that of an execution-only trader brokerage of CFD and rolling spot forex,” the Companies House filing stated.

Apart from the UK entity, the EC Markets brand operates with two offshore licenses: one obtained from the Seychelles Financial Services Authority and another from the Mauritius Financial Services Commission. The retail-focused services under the offshore entities are also much broader with cryptocurrency CFDs.

The Fast Fall of GCM Prime

GCM Prime shuttered its services in 2017, only a couple of years after its launch, after recording losses of close on £4 million ($3.87 million), Finance Magnates reported earlier. The prime of prime brokerage firm’s problems can be traced back to the first few months of 2017 when Gallant Capital Markets, a retail broker known as GCMFX, filed for bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term.

GCM Prime had no connection to GCMFX despite its similar-sounding name. However, rumors spread across the industry that there was indeed a connection between the two firms and that GCM Prime would be negatively impacted by the broker’s bankruptcy filing. London-based Chinese entrepreneur Xiaoliang Lyu later acquired the assets of GCM Prime, leading to the rebranding of the platform.