GAIN Capital grabs Trading 212 CEO Nick Saunders

FX trading industry veteran Nick Saunders has joined GAIN Capital as Head of Cash Equities, based in London.

The retail FX broker is controlled by StoneX, formerly known as INTL FCStone, after the completion of an all-cash transaction representing approximately $236 million in equity value.

Mr. Saunders joins GAIN Capital from Trading 212, where he was Chief Executive Officer of the UK business for six years. He was responsible for the broker’s launch of deliverable equities with zero commission.

The Bulgarian retail FX brokerage generated a stir in London, hot on the heels of the launch of its physically deliverable equities product range.

At the time, UK mainstream news outlets reported that “for the first time in the UK’s history, anyone wanting to dabble in shares can trade away without having to pay commission as Trading 212 launches its share trading platform today.”

FinanceFeeds former CEO Andrew Saks investigated the case as there is absolutely no way of taking all the risk and operating a b-book when the end product is physically deliverable at genuine market value and has been provided by the live equities market.

The then Trading 212 CEO told FinanceFeeds: “I can tell you that there is no smoke and mirrors. Trades in physical equities are traded either on the incumbent exchange (e.g LSE) or an MTF such as BATS. There is no spread mark up; trades are still subject to best execution requirements so we would be breaking FCA rules if there was.

“For smaller trades, we pay the minimal execution costs. Up to point it’s a marketing tool, but one that does offer genuine benefits. We estimate the actual execution costs of a trade at about £1; seen in that light, 10 free trades a month is not a massive cost, but does make you question how the more established brokers get away with such a mark up.”

As Nick Saunders enters a new milestone in his career, GAIN Capital is sure to make the best use of his innovative mindset.