Gain Capital Holdings May Buy GFT’s Japanese Retail Accounts

Gain Capital Holdings Inc. (GCAP) has already announced the acquisition decision of GFT Forex’s US individual accounts. However, it is in talks to purchase the retail business of the company in Japan as well. Incidentally, GFT Forex, a rival online trading company to GCAP stated that it has decided to close down the retail foreign exchange business that it operates in US on 3rd December.

Glenn Stevens, the Chief Executive Officer of GCAP stated that the cost of around 8600 US listed foreign exchange accounts from GFT will depend on future cooperation, which is expected to come within the next month in itself. The Company has decided to move all the customer accounts held at the US regulated subsidiary of GFT. The transfer is going to be an opt-out process, but, Stevens is hopeful that the customer retention rate will be more than 90%. Stevens also commented that that the accounts transfer process will be a significant uptick for its US customers. The transfer will ensure more customers and assets for the company. Currently, GCAP has around $450 million in customer accounts and around $325 million out of that is related to foreign exchange.

Gary Tilkin, the CEO and President of GFT Forex stated that the Company is in talks to sell the retail accounts that it holds in Japan currently. According to Tikkin, there is still no signed agreement on the Japanese retail accounts sale off, but, it’s still a possibility. However, Tikkin added that they are yet to receive clearance from the Japanese regulators to do any sort of sale off.

The account transfer process is expected to be a seamless process and customers can continue to trade on the GFT’s platform, as confirmed by Samantha Roady, the CMO of GCAP. Samantha added that the transfer will not cause any disruption and the open positions of the customers will stay intact.

GCAP, a global provider of online trading services, don’t only trade into forex, but, CFDs and exchange based products as well. It also has an independent hedge fund named FX ECN. Other firms operated by GCAP include GAIN Securities and OEC, a US broker-dealer and online futures broker respectively. The company which has offices in New York City, Sydney, London, Tokyo, New Jersey etc. had purchased Open E Cry earlier this year.