AvaTrade is seeking to acquire Stratos, the operator of the FXCM and Tradu brands, from Jefferies Financial Group and has allegedly made an offer for the business, according to information obtained by Finance Magnates Intelligence. At the same time, a crypto exchange is now also reportedly interested in Stratos and has allegedly submitted a competing bid.
The reported interest in Stratos follows earlier coverage by Finance Magnates that Jefferies is considering selling the group, which operates two contracts for differences (CFD) brands, FXCM and Tradu. The outcome of the bidding process remains uncertain, and the financial terms and conditions of both offers have not been disclosed.
Scope of the Proposed AvaTrade Deal
AvaTrade is allegedly aiming to acquire the entire Stratos business, with the exception of FXCM Bullion Limited. FXCM Bullion is a specialised affiliate based in Hong Kong that handles the accounts and servicing of clients in China and Hong Kong. The exclusion of FXCM Bullion from the deal is part of the reported transaction structure.
Finance Magnates approached AvaTrade for confirmation and details on the status of the potential acquisition. However, the company has not provided any confirmation regarding the reported offer or ongoing negotiations.
Strategic Importance of FXCM and Tradu
Control of Stratos would hand the successful bidder the legacy FXCM brand, which remains a recognized name in the CFD trading industry. FXCM was founded in 1999 in New York and was among the first brokers to provide retail traders with online access to the foreign exchange markets.
Tradu, the sister brand to FXCM, is comparatively new and, according to the information available, appears not to have gained significant traction. Earlier this year, Tradu stopped accepting new clients and began migrating existing customers to FXCM. In addition, Tradu launched a crypto exchange and holds a MiCA license in Cyprus.
Jefferies’ Involvement and Rebranding to Stratos
Jefferies’ involvement with FXCM dates back to January 2015, when it provided a $300 million bailout after the Swiss franc crisis wiped out $225 million in client equity at FXCM overnight. That intervention gave Jefferies a 49.9 percent voting interest in FXCM.
Nearly nine years later, in September 2023, Jefferies obtained full ownership of FXCM by foreclosing on its parent company, GLBR, which had defaulted on a credit facility backed by its equity stake in FXCM. Following this foreclosure, FXCM became a wholly owned subsidiary of Jefferies and was subsequently rebranded as Stratos Group in 2023.
The current bidding interest from AvaTrade and a crypto exchange indicates that Jefferies is considering a further change in ownership of Stratos. Any completed sale would transfer control of the FXCM and Tradu operations, excluding FXCM Bullion Limited, to the successful bidder.
