FXCM US exit as a business opportunity – AMB Prime’s Paul Orford elaborates

Maria Nikolova

“The industry will just evolve like it always does, similar to post SNB when many thought it was the end of days”, says Paul Orford, Head of Institutional Sales at AMB Prime.

The various dimensions of the impact on the FX industry from the ban on FXCM and its principals from the US market are gradually becoming apparent, with employees losing their jobs, clients being transferred to GAIN Capital and uncertainty mounting amid international clientele and partners’ network. At the same time, the exit of FXCM from the retail FX market in the US may be viewed from another perspective and that is – as a certain business opportunity.

FinanceFeeds spoke today to Paul Orford, Head of Institutional Sales at AMB Prime, who agreed to elaborate on the topic.

The sad note

“I am sad for the loss of employment for the 150 employees who have been caught in the cross fire, hopefully they will go on to bigger and better things”, Mr Orford said.

The positive note

Paul Orford, Head of Institutional Sales, AMB Prime

He then struck a more upbeat note, reminding us that the January 15, 2015 events were also seen as the end of the industry by many, but the FX sector moved on.

“The industry will just evolve like it always does, similar to post SNB many thought it was the end of days. Many told me that they believed the industry was finished. It may have changed to the way it was prior to SNB, however we are still in a thriving and healthy industry which is always going to stimulate me with its fast moving and dynamic components”, Mr Orford said.

Prime Brokerages and FXCM’s exit from the US market

FinanceFeeds then asked Mr Orford on what FXCM’s exit from the US retail FX sector means for for prime brokerages. He explained that this is in fact an opportunity.

“In life everything is an opportunity. This will give space to others in the market as perhaps new providers will be sought for, along with partnerships that will perhaps be looking for a new home for their clients” – Paul Orford, Head of Institutional Sales, AMB Prime.

He then underlined the essential components of a good prime brokerage partnership.

“The key with any Prime Brokerage relationship is based on unwavering confidence. If a client has any hesitation about your services or transparency, this can lead to a death spiral in your business”, he said.

Would IBs try to become FX brokers?

Given the latest developments in the US market, we asked Mr Orford whether he thinks that this would push IBs to become FX brokers.

“Over the years that I have been involved in FX I have known the same retail IBs I worked with many years ago to help them in making their own brokerage. This has been on the increase in the past several years. Moreover where we have been able to assist them is that we have strong partnerships with proven tech providers and related services required”, Mr Orford said.

Commenting on the challenges for such a transformation, he noted:

“Where they do need help is understanding the back end as they are usually fantastic at marketing and generating revenue, however the back office functions along with risk management as this is new to them. As a result of this it can be a challenge for them if they have come from a profit and loss deal as an IB to having to understand the full agency model”.

  • Read this next

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”


    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.


    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.