Gain Capital, owner of Forex.com, is acquiring the retail foreign exchange business of CMS Forex, which is retreating from the market.
The transfer of CMS Forex’s US and Bermuda customers was completed on 15 October 2010 while the transfer of accounts of CMS Forex’s subsidiaries in the UK and Japan is scheduled to be completed in the coming weeks, pending regulatory approval.
“We are pleased to be in a position to offer CMS Forex’s retail customers around the world the ability to continue trading forex with an established, well capitalised firm,” says Glenn Stevens, CEO of Gain Capital. “Our goal is to provide these traders with uninterrupted service, and we will work closely with CMS Forex’s team to ensure a smooth transition of their customer’s accounts and assets to our retail division, Forex.com.”
CMS Forex, which was founded in 1999 by a group of FX traders, brokers, and software developers, will continue to offer FX liquidity services to institutional clients globally and act as an introducing broker of retail business to Gain Capital.
In an emailed statement, Eugene Hawkin, president and COO of CMS Forex says, “When we made the strategic decision to exit the retail FX market, our major priority was to find our customers the opportunity to trade with a firm equally committed to providing superior technology offerings, educational resources and customer service. Having engaged in discussions with a number of firms, we felt that Gain Capital would provide our customers with the quality of tools and services they have received during their time with CMS Forex.”
The acquisition is Gain’s second this year. On 13 September, it announced that it had acquired approximately 4,000 customer accounts of MG Financial, as a result of MG Financial’s decision to exit the retail forex industry and cease operations.
CMS Forex was founded in 1999 by professional FX traders, brokers, and software developers. It will continue to develop and operate its institutional forex business.