Ireland and Israel based retail foreign exchange and CFDs broker AvaTrade has agreed to acquire the majority of FXCM Group's business from Jefferies Financial Group Inc (NYSE:JEF), bringing one of the longest-established brands in online trading under new ownership. Terms of the transaction were not disclosed.
The parties did not define precisely what "the majority of FXCM Group's business" covers. The agreement follows the separate acquisition of FXCM's UK client base by London based CFDs broker Trade Nation earlier in the same week, and FXCM also operates the FXCM Pro institutional services and liquidity business. Jefferies has been reported to be looking to exit the online retail brokerage business worldwide.
FXCM's regulatory footprint
Beyond the UK, FXCM subsidiaries hold licences in Cyprus, Australia, South Africa, Israel, and St. Vincent and the Grenadines.
Founded in 1999, FXCM was an early provider of forex trading to retail investors and has built a global client base over more than two decades. Jefferies effectively took control of the company in 2015 after providing a rescue loan, which eventually converted into equity, following the surprise move in the Swiss franc in January 2015 that nearly bankrupted FXCM at the time.
AvaTrade's expansion strategy
"Our ambition is to help shape the next phase of global online trading. This transaction represents a significant further step toward realising that ambition," the broker said, adding that combining "FXCM's established market presence with AvaTrade's technology and product innovation" is intended to expand its global reach and build a "stronger, more diversified trading group."
"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," Ferguson said. "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."
The deal is the latest in a series of moves by AvaTrade aimed at expanding its presence in the global online trading industry, following the launch of the AvaTrade Group's AI-powered trading platform and several technology-focused initiatives.
Founded in 2006, AvaTrade offers futures, options and CFDs on forex, commodities, indices, stocks and crypto-related products, as well as copy trading solutions, and is regulated across multiple international jurisdictions.
