NEW YORK--(BUSINESS WIRE)--FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, (“FX”), trading and related services worldwide, today announced that its subsidiary FXCM Japan Securities Co., Ltd. (“FXCM Japan”) has agreed on terms to acquire Japanese FX broker Foreland Forex Co., Ltd. (“Foreland”), subject to certain adjustments. The agreement is subject to final documentation and is anticipated to be completed in the first half of October.
Foreland is one of the oldest and most established Japanese FX brokers, offering retail FX trading since 2001. They have established a reputation for offering attractive swap points, competitive spreads, and aiming to expand a customer’s trading life by offering market commentary and analysis, education and trading tools. As of September 1, 2011 Foreland had over 18,500 tradable accounts* with client equity of over $190 million. When combined with FXCM Japan’s over 25,700 tradable accounts* and over $159 million in client equity, the result is one of the largest retail FX brokers in Japan.
Commenting on the acquisition, Drew Niv, CEO of FXCM, said, “FXCM Japan is gaining critical mass in Japan, the world’s largest retail FX market, and a region we continue to be bullish on.” The proposed transaction, Niv added, “is another example of our disciplined acquisition approach. After closing, we look to see immediate payoff from growth in client equity and increased brand recognition in Japan.” Niv continued, “This merger positions FXCM Japan to be one of the largest retail FX brokers in the Japanese market, where we continue to grow in size, but more importantly continue to strive to bring the top product to Japanese traders.” Adding, “Foreland targeted a very different customer base than we normally do and this adds worth to the acquisition because it diversifies our holdings.”
As with FXCM’s acquisition earlier this year of the retail FX business of GCI Capital, FXCM believes this deal was attractive from a value standpoint. With the completion of major regulatory changes, FXCM believes that the Japanese market is particularly attractive with large numbers of retail FX clients who maintain longer relationships with their brokers than other global markets.
FXCM Japan offers clients the benefit of FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs on our flagship and award winning platform FXCM Trading Station. Clients are be able to trade oil, gold, silver and stock indices along with forex. Additional advantages include mobile trading, one-click order execution and trading from real-time charts. FXCM offers clients the ability to place stops and limits freely and allow traders to customize them for every ticket. FXCM supplies over 600 custom indicators and permits clients the ability to build their own.
Disclosure Regarding Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect FXCM’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes, "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. FXCM believes these factors include but are not limited to evolving legal and regulatory requirements of the FX industry, the limited operating history of the FX industry, risks related to the protection of its proprietary technology, risks related to its dependence on FX market makers, market conditions and those other risks described under "Risk Factors" in FXCM's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2011 and subsequently filed quarterly reports on Form 10-Q.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the prospectus. FXCM undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About FXCM Inc.
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide.
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. FXCM's UK subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Read full risk disclaimer.
Unless otherwise noted, all references to "FXCM" refer to FXCM Inc. and its consolidated subsidiaries.
*A Tradeable Account is an account with sufficient funds to place a trade in accordance with FXCM trading policies.