FXCM US clients to be transferred to Forex.com on February 24, 2017
GAIN Capital’s Forex.com instructs former clients and IBs of FXCM US on the pending transfer.
It has been a week since Gain Capital Holdings Inc (NYSE:GCAP) announced it sealed a definitive agreement to acquire the US retail FX clients of FXCM Inc (NASDAQ:FXCM).
Since then, some financial details about the deal have emerged: GAIN is making no upfront payment. The sum FXCM will receive for disposing of its US retail FX business will depend on the trading activity of clients acquired by GAIN. The maximum amount to be paid per account transferred is $500 – that is, if the client executes at least one trade during the 76 days after the closure of the deal.
The deal itself is subject to regulatory approvals.
GAIN Capital’s CEO Glenn Stevens has himself pledged seamless transition to clients from FXCM to Forex.com.
Today, GAIN Capital made a step towards welcoming FXCM US clients – Forex.com’s website now features a dedicated section for them. The clients are advised to examine the trading conditions and services provided by Forex.com. They are informed of the choice of platforms (ForexTrader and MetaTrader 4), the spreads, and the pricing.
More importantly, the clients are provided with procedural details about the transfer.
On Friday, February 24, 2017, all existing balances and positions will be automatically transferred to the new FOREX.com accounts. Any open positions will be closed at the Bloomberg mid-rate of 16:00 ET and re-established with FOREX.com at the same rate. (Positions with TRY/JPY will not transfer.) Clients are instructed to manage these positions accordingly so that the positions are closed in advance of the Transfer Date.
- Stops and limits
All pending orders, including stop and limit orders, will be canceled on the Transfer Date. Traders will have to re-establish open orders in your FOREX.com account following the transfer.
- If you do not want to transfer
You must request a withdrawal of the full balance of FXCM account by Monday, February 20, 2017 at 23:59 ET. Withdrawals that are in process, but not completed, by Monday, February 20, 2017 at 23:59 ET, will be honored. However, any withdrawal requests received after that date will be rejected and the account(s) will be transferred to FOREX.com on the Transfer Date.
- Introducing Brokers
They have options. Forex.com asks them to contact the company to learn the options available to during this transition period.