GAIN Capital to pay up to $500 for each FXCM US client account based on activity

Maria Nikolova

GAIN Capital will pay $500 for each transferred client account which executes at least one new trade during the first 76 calendar days after the closure of the purchase agreement.

Further to FinanceFeeds’ report about Gain Capital Holdings Inc (NYSE:GCAP) entering into a definitive agreement to acquire the US retail FX accounts of FXCM Inc (NASDAQ:FXCM), we have become aware of financial details of the agreement.

According to an FXCM filing with the United States Securities and Exchange Commission (SEC), the sum GAIN will pay depends on the trading activity of clients acquired. That is, there is no money paid upfront.

Under the terms of the agreement, GAIN Capital will pay $500 for each transferred client account for which the transferred client account executes at least one new trade during the first 76 calendars days of the 153-day period after the closure of the purchase agreement. The sum is $250 for an account if at least one new trade is executed during the period from the 77th day through the 153rd day.

The closing of the transaction hinges on receipt of necessary regulatory approvals.

Meanwhile, uncertainty is growing amid clients of FXCM overseas. Companies like FXCM UK and FXCM France have used social media channels to try to respond to client concerns and assure customers that the business will continue as usual, independently of what has happened in the US.

US customers of the broker no longer have access to services such as, FXCM’s online marketplace.

Certain companies, including FastMatch, have sought to reiterate their independence from FXCM, following regulatory findings that the broker has traded against its customers for several years. In response, FastMatch noted that “FXCM is a passive minority owner of FastMatch. FastMatch operates as a completely independent entity of FXCM with no operational dependencies between two firms”.

Rakuten was also forced to explain the nature of its ties with FXCM, having acquired FXCM Asia Limited (FXCM Hong Kong) back in May 2015. In its announcement, Rakuten Securities Hong Kong stressed that it is a part of Rakuten Inc and, hence, independent of FXCM. “The execution service of Trading Station platform is supported by FXCM and the Trading Station platform is just one of the platforms we offer to customers”, the Hong Kong broker said.

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