Ireland and Israel based Retail FX and CFDs broker AvaTrade has announced that it has agreed to acquire the majority of FXCM Group’s business, one of the world’s longest-established online trading brands.
Founded in 1999, FXCM was a pioneer of Forex trading for retail investors and has built a loyal global client base over more than two decades. The company was effectively acquired by US financial concern Jefferies Financial Group Inc (NYSE:JEF) in 2015, when Jefferies provided a rescue loan to the company (which eventually turned into equity) following a surprise move in the Swiss Franc in January 2015 that nearly bankrupted FXCM at the time.
The parties didn’t define exactly what “the majority of FXCM Group’s business” means or includes. However we had reported that London based CFDs broker Trade Nation acquired FXCM’s UK client base. And, that Jefferies was looking to exit the online retail brokerage business worldwide. FXCM also operates the FXCM Pro institutional services and liquidity business.
In addition to the UK, FXCM subsidiaries hold licenses in Cyprus, Australia South Africa, Israel, and St. Vincent and the Grenadines.
Daire Ferguson, CEO of AvaTrade said,“Our ambition is to help shape the next phase of global online trading. This transaction represents a significant further step toward realising that ambition. 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.”
The acquisition is the latest in a series of strategic moves by AvaTrade aimed to expand its presence in the global online trading industry. It follows the launch of the AvaTrade Group’s AI-powered trading platform and several technology-focused initiatives. Together, these developments reflect continued investment in technology, infrastructure and specialist talent, as AvaTrade scales its international operations and expands its product capabilities.
“The online trading industry is entering a new phase in which leading companies must combine trust, innovation and global access, with a broad range of trading solutions,” added Ferguson. “This agreement supports our strategy to expand internationally, broaden our multi-asset offering and continue to invest in technology, including AI, to support traders at every experience level. We look forward to welcoming FXCM clients to a new era of trading with AvaTrade.”