GFT Hastily Exits U.S. Retail Forex Business

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GAIN Capital have just announced in a press release that:

It has reached an agreement to acquire the US-based retail forex business of GFT Forex ("GFT"), pending regulatory approval.  Financial terms of the transaction were not disclosed.

GAIN Capital Group LLC, the US regulated entity of GAIN Capital Holdings, Inc., agreed to acquire the retail customer accounts currently held at GFT's US regulated subsidiary.   The transfer of GFT's US-based customers is scheduled for Friday, December 7, 2012, after the close of trading.

At very short notice GFT's US retail FX customers will find on Sunday that they have already joined a long queue of other US retail forex traders that have been forced by circumstances outside their control to become FOREX.com customers instead. Putting a brave face on it GFT's chairman Gary Tilkin said that :

GFT is pleased to transfer our US-based retail forex accounts to GAIN Capital.  GAIN is one of our industry's oldest and most respected companies and we're confident that our accounts will receive the same high level of service and trading execution that they've experienced with GFT.

GAIN Capital's CEO Glenn Stevens was no doubt even more pleased when he said that:

We are pleased to be in a position to offer GFT's US-based retail customers the ability to continue trading forex with an established US regulated firm, with no interruption in service. We will work closely with the team at GFT to ensure a smooth transition of their customer's accounts and assets to our retail division, FOREX.com.

GFT are of course much more than just a US retail forex broker. As one of their customers here in the UK I gave them a call this morning. I was assured that there will be no change whatsoever for UK retail clients of GFT, and that the company is simply focussing on their institutional business in the United States from now on. Nonetheless one can't help but speculate about whether GFT's US futures trading clients might just be wondering what all the fuss is about at this juncture?

This afternoon (UK time) I received some additional comments from GFT's  office in Grand Rapids, Michigan. It reads as follows:

While the markets remain challenging, GFT is well capitalized.  GFT has earned a stellar regulatory record operating in more than 100 countries with an unwavering commitment to operating, above all with integrity. The decision to stop offering retail forex in the United States was based on an evaluation of the potential return on capital within that market.  We're pleased with the progress to date in transferring our US based clients to other providers.  Our accounts know that customer service is available 24 hours a day 7 days a week if there are any questions or concerns.  It's very much business as usual at GFT in all the other regions where we compete and we look forward to growing our business and serving the needs of traders at the highest level.

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December 11, 2012

Trader One @ 1:51 am #

GFT transition its being a mess.

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