A great event has recently happened at Forex market, having raised high interest of analysts, professional traders, and investors. One of the largest international holdings – GAIN Capital Holdings Inc has officially announced that the process of purchasing Forex brand of Global Futures&Forex, LTD (GFT) is over.
Financial experts claim that as a result of integration of largest company in the industry the market has received a giant that can provide traders and investors with better conditions for effecting profitable transactions. Besides, this concerns not only Forex market, but also commodities, stock, and raw material markets, as well as transactions with oil, gas, options, gold, silver, etc.
Chief Executive Officer of GAIN Capital Holdings Inc Glenn Stevens says, “Acquisition of GFT company has become a privilege for clients, partners, and shareholders. The joint organization as a part of the holding has now received wider world presence, assortment of over 12 500 financial products, and use of up-to-date trading technologies. We are planning to use the wide choice of financial tools provided by GFT company, as well as innovative trading tools and learning programs for rising our competitive power, thus combining the best from two organizations.”
Mr. Stevens has added that this deal is an important strategic step to strengthening leadership at financial markets.
GAIN Capital Holdings Inc: Mark of World Quality
According to the leading financial market expert of Masterforex-V Academy Evgeny Olkhovski, GAIN Capital currently is one of the largest Forex brokers, which is represented in numerous countries worldwide, and its shares are quoted at New York stock exchange NYSE: GCAP.
The structure of the giant also includes a famous Forex brand – FOREX.com company, which, by the way, has been successfully working in Russia for ten years. As stated by Russian clients of FOREX.com, owing to cooperation with the broker, their work at Forex market has become more effective, stable, and profitable. This has been favoured by one of the lowest spreads at the market, minimal commission fees, innovative trading technologies, and numerous stimulating bonus programs and shares.
“It is worth mentioning,” highlights Evgeny Olkhovski, “that FOREX.com is one of the few companies having the licenses of five leading regulators worldwide, including such authoritative ones as FSA and NFA. At the same time, the broker takes part in the program of Compensation in the sphere of financial services, which guarantees its clients 100% safeguard of assets and safety of any trading or balance transaction. There is no surprise that due to the abovementioned features clients of FOREX.com currently include about 250 000 traders from 140 countries worldwide.”
Speaking about GAIN Capital Holdings Inc, at this point it is one of the largest companies worldwide that provides services on real-time access to financial markets. Owing to own exclusive developments, mostly represented by various automated systems, traders’ orders are fulfilled immediately, and deals on various assets are made at best prices for traders.
Besides, GAIN Capital Holdings Inc has established itself as a leader in the sphere of independent electronic communication network of currency trade (FX ECN) for hedge funds and financial institutions, as well as at the market of securities. The holding has representative offices in many regions worldwide, including world’s largest financial centers – London, New York, Tokyo, Sydney, Hong Kong , Beijing, Singapore, Seoul, etc.
Financial Results of Brands
“The purchase of GFT Forex broker company, effected by GAIN Capital Holdings Inc, will considerably strengthen positions of the holding at international market,” supposes Evgeny Olkhovski, “and this favours the fact that clients of both companies will get the opportunity of more effective trading and higher profits. By the way, GTF company has also established itself as a leader in its market segment by providing high-quality services on trading currencies, options, and contracts for difference. Besides, the company effects spread-betting via its own platform Dealbook, which has gained numerous international awards.”
For the time of GFT’s work at financial markets it has formed a wide partner network worldwide, which provided 75% of total trading volume of the company last year. Now, when GFT is a part of GAIN Capital Holdings Inc, analysts predict that international network will bring 52% of total trading volume, and 48% will be formed by the company’s retail clients, in particular, the holding itself.
It is worth mentioning that GFT has successfully fulfilled Sales Trader project, which brought the company about 40% of total trading volume in 2012. According to GAIN Capital representatives, this project may be well integrated into a package of order fulfillment of the holding’s institutional clients.
By the way, GAIN Capital employees have also calculated the official financial results of the two companies during the first half of 2013. The announced results prove that:
− profit has amounted to 190 mln. dollars (GAINCapital − 122.8 mln. dollars; GFT− 67.2 mln. dollars);
− official trading volume has made up 3.6 trn. dollars (GAINCapital − 2.8 trn. dollars; GFT: 0.8 trn. dollars);
− volume of retail trade has reached 1.3 trn. dollars (GAINCapital − 899.1 bln. dollars; GFT − 391.3 bln. dollars);
− volume of institutional trade has amounted to 2.3 trn. dollars (GAINCapital − 1.9 trn. dollars; GFT − 0.4 trn. dollars);
− official sum of clients’ means has made up 683.8 mln. dollars (GAINCapital − 475.6 mln. dollars, GFT: 208.2 mln. dollars).
GAIN Capital expects that, as a result of joining the two companies, operating expenses will reduce by 35-45 million dollars during the first year, and income of the holding will increase during the last quarter of 2013.
According to GAIN Capital representatives, the cost of transaction on purchase of GTF company has been agreed to amount to 40 mln. dollars of cash funds, about 3.6 mln. shares of the company, and about 33 mln. dollars of 5-year sellernotes. On termination of the transaction GAIN Capital holding has received about 73 mln. dollars of GFT cash funds.
“Speaking about client policy, clients of GFT are to be gradually moved to GAIN Capital. We will send messages on improvements in clients’ services and opportunities of updated trading tools when they become available,” admitted specialists of GAIN Capital Holdings Inc.
