3

5
Editor's Note
Section 1 | Q3 2014 Forex Market Overview

Forex Market Quarterly Overview
Institutional FX Volumes' Review
Retail Forex Volumes
Retail Forex Volumes By Accounts
Retail Forex Volumes By MT4 Usage
Exchanges Update
Regulations Update
Section 2 | Articles
The End of the Federal Reserves Tapering: A Revival for FX Volatility
Forex Brokers Go Global with Web TV
FX Blue: Apping the Trade Game
FX Options: Making Headways in Electronic Trading
Leaving Recession Behind: Dubai the Unstoppable
FX Funds: A Road Less Travelled or No Respite?
Forex Futures Markets: Catalysts for Emerging EU Economies
Reconstructing the U.S. Forex Industry: The Aftermath of Liquidity Constraints
Singapore: Creating Asia-Pacics Financial Epicenter
CurrentBusiness: Streamlining and Automating a Brokerage
Nigeria: Africas New Economic Colossus
Third World Payments: Get Paid in BRICS
Meet the Experts: An Exclusive QIR Project
Section 3 | Detailed Broker Information
The Forex Industry's Biggest M&A and Investments
Section 4 | Major News For Q3 2014
Infographics Index
7
10
14
18
22
24
28
32
36
44
50
56
62
68
74
80
86
94
100
106
114
121
144
149
158
CONTENT
INDEX
9
MARKET
OVERVI EW
Section
01
Forex Market Quarterly Overview
Institutional FX Volumes Review Retail
Forex Volumes Retail Forex Volumes by
Account Retail Forex Volumes by MT4
Usage Exchanges Update
Regulations Update
10
OVERVIEW 01
A
s we turn yet another quar-
ter and near the conclusion
of the year, the last month
of 2014s summer quarter marked
a newly juiced-up forex market.
Let The Roller Coaster Ride Begin
- FX Volatility Is Back

After a long delay, the Euro-
pean Central Bank (ECB) put its
money where its mouth is, and
in September, announced the
intention to flood the European
Asset Backed Securities market
with newly printed cash, which
combined with the approach-
ing end of the Federal Reserves
tapering program, triggered a
long awaited bout of FX vola-
tility in the euro. In addition,
the British pound and Japanese
yen saw activity soar thanks to
speculations made ahead of the
Scottish Independence Refer-
endum and renewed inflation-
stimulating activity from the
Bank of Japan.
While the month of July was
subdued, market activity started
picking up materially in August
and accelerated in September,
when on the day of the biggest
volatility event of the month,
ECB Presidents Mario Draghi's
press conference, several li-
quidity providers and foreign
exchange brokers marked their
highest trading volumes for
2014. More importantly, market
activity remained strong, which
was in contrast to the quick fiz-
zling volatility bouts earlier in
the year.

Emerging Markets Worries
Emerging markets have had
their feathers ruffled again, this
time by a slew of factors im-
pacting volatility. The Russian
ruble set a multitude of all-time
lows; ongoing geopolitical ten-
sions in the Ukraine resulted
in further sanctions being im-
posed by the U.S. and EU. The
Chinese economy has shown
resilience, but just how long
the current growth trend will
persist is anyone's guess. The
abundance of speculations that
the country could suffer from
a material downturn were ill-
timed, just as the first wave of
serious pro-democracy protests
started in Hong Kong. Geopo-
litical turmoil could well be with
FOREX MARKET
QUARTERLY OVERVIEW
us throughout the final quarter
of the year.
For retail brokers, emerging
markets have been constituting
a growth area for the last three
years with many firms opening
new offices to court local cus-
tomers. Russia, for example,
outperformed during the sec-
ond half of 2013 while most re-
gions experienced a reduction
in trading. But consequential to
this years regional upheaval, it
trailed behind with brokers see-
ing a sharp decline in overall
domestic traded volumes. In
China and the Southeast Asia
(both recent growth drivers for
many brokers), 2014 volumes
have remained strong to date.
However, if the 1997-8 Asian fi-
nancial crisis is anything to go
by, an economic growth slow-
down could quickly trigger a
removal of foreign investment
which could potentially cripple
volumes in the region.

FXCM Introduces Raw Spreads
After IBFX Accounts Acquisition
September was a big month for
11
M&A activity. FXCM took center
stage, drawing market attention
with several key announce-
ments. Early on in the month,
the company publicized its ac-
quisition of the U.S. and Austra-
lian MT4 retail IBFX customer
base. This was followed by the
broker introducing a new pric-
ing model offering raw spreads,
which reduced trading costs for
its U.S. customers by an aver-
age of 50% on the top 14 cur-
rency pairs via tighter spreads
and commission-based pricing.
As such, the spread reduction is
expected to allow FXCM greater
flexibility when competing on
cost with other U.S. brokers.
Arguably, this business model
shift could evolve into a whole
new trend for the industry, with
brokers starting to offer normal-
ized spreads and turning into
a commission-based model.
As market volatility increases,
some brokers can still take ad-
vantage of the ongoing market
wave, but in the long run many
more can enter the ball game
too, which would expose them
to a very different type of com-
petition, and on a whole new
level. Technological differences
will become a major factor, es-
pecially with the ever growing
trend of mobile trading.
Both publicly listed U.S. forex
brokerages, FXCM and GAIN
Capital, reported dwindling rev-
enues in the second quarter,
after the lowest FX volatility in
21 years have tangibly affected
both companies revenues. Their
individual shares hit multi-
month lows before stabilizing,
amid signs of volatility being
re-introduced to the market.
Mergers & Acquisitions
The multi-decade low in FX vol-
atility led to a whole new world
of M&A market activity. During
the quarter, Boston Technolo-
gies were officially acquired by
Forexware, a move widely an-
ticipated across the market since
Forex Magnates broke the story
in May. The deal was sealed de-
spite alleged ownership irregu-
larities in the corporate structure
of BT Prime and Boston Prime.
Meanwhile, Charles Henry-
Sabbet and GLIO Holdings
made a financing proposal to
LCG Capital, which the com-
pany accepted before part-
ing ways with CEO Kevin
Ashby, making Charles Henri-
Sabet Executive Chairman as
part of the financing agreement.
Another M&A deal was completed
this summer with UK-based CFD
brokerage, ETX Capital, acquir-
ing Ariel Communications. The
deal was based on close coop-
eration as before the acquisition,
ETX Capital was believed to have
been Ariels largest customer. The
brokerage set foot into the tech-
nology space, with a focus on de-
livering superior client services.
Ariels multi-asset trading plat-
form sits in well with ETX Capitals
global spread betting, leveraged
FX and CFD trading business.
This next bout of FX volatil-
ity should serve many brokerages
which haven't yet embarked on
diversication strategies by transi-
tioning into the multi-asset arena.
In a move which marked its
first technology acquisition,
the FxPro Group, announced its
purchase of spot FX aggrega-
tor Quotix. In addition to im-
proved pricing for its clients,
the deal has enabled the firm to
expand its services to a broader
range, including the provision
of prime-of-prime services.
Meanwhile, after its foray into
the Japanese market, Traden-
cy entered into a strategic al-
liance with Japanese Broker
Invast with the latter acquiring
15% of the company. The Mir-
ror Trader platform developer
and Invast Securities are aim-
ing to elevate the cooperation
between the companies for the
deployment of Mirror Trader.
While with the proceeds ob-
tained from the equity deal,
Tradency stated that it will
strengthen and extend its prod-
uct line and business activities.
35
ARTI CLES
The End of the FeDs Tapering: A
Revival for FX Volatility Forex
Brokers Go Global with Web TV
FX Blue: Apping the Trade Game
FX Options: Making Headways
in Electronic Trading Dubai the
Unstoppable FX Funds Forex
Futures Markets Reconstructing
the U.S. Forex Industry: The
Aftermath of Liquidity Constraints
Singapore: Creating Asia-Pacifcs
Financial Epicenter CurrentBusiness
Nigeria: Africas New Economic
Colossus Third World Payments:
Get Paid in BRICS Meet the
Experts: An Exclusive QIR Project
Section
02
ARTICLES 02
86
S
ingapore has experienced
gradual stabilization and
prosperity under the gover-
nance of three prime ministers.
The result is an innovative, com-
petitive and business-friendly
country which has transformed
into a key Asia-Pacic nation.
Singapore's economy has been
ranked by the World Economic Fo-
rum as the most open in the world,
and according to Transparency In-
ternational it is also the least cor-
rupt. The World Bank ranked it rst
for business, with very low corpo-
rate tax rates totaling 17% as of 2014.
At almost $55,000, the countrys
GDP per capita is one of the worlds
highest ranking - 7th. according to
2013 IMF data, just ahead of Swe-
den, Denmark and Australia.
In spite of not having a major
currency of its own, nancial ex-
pertise and a solid infrastructure
have helped shape Singapore
into one of the worlds most vi-
brant nancial hubs, and accord-
ing to the BIS, the third largest
FX center globally, an unlikely
outcome when compared to
London, New York and Tokyo.
SINGAPORE: CREATING
ASIA-PACIFICS
FINANCIAL EPICENTER
Singapores Economy at a Glance
Singapores economy is thriving
despite the local challenges posed
by political tensions in Thailand,
the Chinese slowdown and re-
balancing eforts towards a more
service-based economy. Benet-
ing from the global economic up-
Since its unanimous and
resounding expulsion
from the New Federa-
tion of Malaysias round-
table fty years ago,
Singapore has moved
ahead and now ranks as
the worlds third largest
Forex Center.
Forex Magnates exam-
ines how a unique -
nancial regulator and a
solid infrastructure have
created strong founda-
tions for a country that
is thriving despite local
challenges.
By Victor Golovtchenko
Singapore
Key Facts
Languages: English, Malay,
Mandarin and Tamil
Population: 5.4 million
Median Age: 39
Literacy Rate: 97%
GDP Per Capita: $55,000
Mobile Phone Penetration:
150%
Smartphone Ownership:
87%
Internet Penetration: 105%
87
Source: Department of Statistics
of Singapore
Singapore's Estimated Share
of Assets Traded
Fig 27.
10%
Stock
Indices &
Energy
70%
FX
20%
Precious
Metals
SINGAPORE'S ECONOMY & FINANCIAL MARKET
Fig 29.
Number of Retail FX
Traders in Singapore
24
18,000
SINGAPORE'S LOCAL FX MARKET 2014
Number of Regulated
FX Brokerages
Source: Department of Statistics of Singapore
Major
Regulated
Retail Brokers
in Singapore
City Index Asia | CMC Markets
Singapore | GFT Global Markets
(GAIN Capital) | IG Asia
OANDA Asia Pacifc | Saxo Capital
Markets
Fig 28.
Source: Department of Statistics
of Singapore
Singapore GDP, Billions of $US Fig 26.
50
0
100
150
200
250
300
2
0
0
6
2
0
0
5
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
0
1
1
4
.
1
9
1
9
2
.
2
3
1
9
2
.
4
1
2
7
4
.
0
7
2
9
7
.
9
4
2
8
6
.
9
1
2
3
6
.
4
2
1
2
7
.
4
2
1
4
7
.
7
9
Source: Department of Statistics of Singapore
1.5
2.0
2.5
3.0
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
1
3
2
0
1
4
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
3.5
4.0
Singapore's Unemployment Rate (%) Fig 30.
Source: Singapore Ministry of Manpower
ARTICLES 02
44
I
n the realm of forex, brokerage
rms utilize a number of tactics
and strategies to collectively
market their product, report rele-
vant news and advertise their brand
name. In recent years, the inbuilt
dynamic nature of the forex indus-
try, coupled with the ever-shifting
interests of traders has coalesced
into a new form of marketing and
exposure for brokers Web TV.
At its core, Web TV is simply a vi-
sual conduit for facilitating infor-
mation, whether it be via a desktop
computer, tablet, or smartphone.
Web TV is not an entirely new or
novel concept; much of the -
nancial industry has been domi-
nated by household names such
as CNBC, Reuters and Bloomberg.
However, many large brokers have
opted to circumvent these tradi-
tional news outlets and publicize
their own niche reports, which are
often focused on forex trading and
the industry at large.
As the trading community is now
truly global, forex brokers are
prompted to follow suit with more
universal means of reaching their
clientele. Web TV in the forex indus-
try is largely dominated by players
such as Dukascopy Bank (Dukasco-
py TV), FXCM (DirectFX), and Saxo
Bank (Saxo TV), although there are
myriad others as the popularity
FOREX BROKERS GO
GLOBAL WITH WEB TV
for videos and these outlets grow.
The Impetus Behind Web TV
Videos have been a staple for -
nancial viewers since the advent of
the smartphone in the late 2000s.
With improvements in technology
and the mounting use of mobile
devices and tablets, many traders
now exclusively rely on these as
a means for trading, staying in-
formed, and ultimately learning.
There are several rationales that
support the use of Web TV, which
correspond to brokers and traders
alike. In its most basic form, a vid-
eo can help publicize or perme-
ate exposure of a specic brand,
which coupled with social shar-
ing outlets such as Twitter, You-
Tube, and Facebook, can reach
millions of viewers in a short win-
dow of time. In addition to brand
exposure and marketing, Web TV
can also be used as an outlet for
learning and education, specif-
ic points of emphases for many
forex brokers. Finally, Web TV
has proven itself as a viable me-
dium for the reporting of news,
whether it is restricted to forex
or any other nancial institution.
According to Luis Sanchez, First
Vice President and Head of Institu-
Web TV has opened
up new marketing and
brand-building horizons
for the forex industry,
providing real time con-
tent and services.
Forex Magnates takes a
deeper look into how-
some of the biggest
players integrate Web TV
into their product, ex-
ploring its efectiveness,
costs and future.
By Jefery Patterson
47
weighty investment. Dukascopy
estimates the initial cost of setting
up the operation at several millions
of dollars. Unfortunately, there are
other prohibitive forces stymie-
ing the entry into the TV domain,
as TV is a very expensive and a
time-demanding project, so there
can be high barriers to entry into
this undertaking for many player s
(efectively launching such TV and
setting it up for long-term success
is difcult), and you must be a very
stable company with patience and
long-term vision in order to even
consider doing what Dukascopy
has done with this TV. That is just
one reason why we are unique in
this eld. To do this efectively, as
we are doing, the company must
be transparent and neutral. This
concept does not come naturally to
many traditional companies, not-
ed Mr. Sanchez.
The fact that Web TV constitutes a
sizable investment by brokers can
help explain why only a few large
brokers dominate the sector. This
also comes at a particularly tumul-
tuous time, namely as the forex in-
dustry itself has been convulsed by
declining revenues and volumes
during 2014. According to We in-
vite all of our competitors to broad-
cast on our infrastructure, and we
publish their news as well as our
own). For many brokers, creating
their own TV concept and con-
tent may not be a top priority, as
they may prefer to expend their re-
sources on the direct marketing of
their products," says Mr. Sanchez.
"Especially when they can have oc-
casional access to this TV exposure
cost-free, by choosing to harness a
white label ofering of the Dukas-
copy TV, branded with their own
name, at varying levels of inten-
sity.Finally, our main goal is to be-
come the Swiss Bloomberg. This
will take some more years, but it is
indeed something possible for us.
According to Mr. Sanchez, our
goal is to get to 3 million views
each month in 2015. Such views
are conducted via our web page,
mobile devices, YouTube channel
and all of our webmasters. Dukas-
copy TV also white labels the en-
tire TV model, so if any company
is interested in having its own TV
channel, they can approach us, and
at no cost, we will share our vision
and our concept, and our open ar-
chitecture. This equals new part-
ners. Also I would like to mention
that our TV participates regularly in
nancial expos such as Forex Mag-
nates Summits, IFXEXPO, Financial
Partners, and with others cover-
ing or delivering such events.
Quantifying Success
There are a number of ways to
measure the efectiveness of any
marketing initiative, and Web TV
is no exception. Trafc analytics,
the number of videos or webinars,
visitors, and the augmented size
and scale of a brokers ofering are
amongst the clearest barometers,
though this is entirely dependent
on the underlying strategy itself.
Fig 7.
On average
per day
On average per day
Per month (67k
views per day)
On average
per day
6
4,700 2 million
20
Number of
Videos Uploaded
Number of
Video Views
FOREX WEB TV STATS
DailyFX Dukascopy
Source: Dukascopy and DailyFX
ARTICLES 02
74
T
he introduction of Forex
derivative products in 2013
by two leading derivatives
powerhouses, Eurex and CME, was
going to mark a turning point for
the regulated European forex mar-
ket. Both, however, got of to an un-
lucky start: Eurex initially planned
to introduce its forex futures and
options product line in October
2013, but did so only in July, 2014.
The delay resulted from the third
party bank providing access to the
CLS (Continuous Linked Settle-
ment) system required to reinforce
the banks controls. CME Europe,
which put down roots in London,
had originally planned to intro-
duce its forex derivatives product
line in September 2013, but failed
to apply for approval with the Bank
of England. As a result, the FCA was
unable to greenlight the project.
New Prospects for Europe
Despite these early hitches, the
establishment of two new trad-
ing venues for forex derivatives
FOREX FUTURES
MARKETS: CATALYSTS
FOR EMERGING
EU ECONOMIES
is signicant. The premise for
CMEs European market plan,
which was revealed back in 2012,
was that the larger share of the
global forex volume is generated
during European trading hours.
In a press release dated August 20,
2012, Terry Dufy, CME Group Ex-
ecutive Chairman and President
said: "We continue to see an in-
crease in business coming from
our diverse set of customers in Eu-
rope, with more than 20 percent of
our volume now originating from
the region." Meanwhile, Peter Re-
itz, member of the Eurex Executive
Board, explained the logic behind
the launch in an ofcial statement:
With this step, we are again con-
tributing to increasing the trans-
parency and safety of nancial
markets. The large majority of forex
derivatives is currently traded of-
exchange. With our listed contracts
we are ofering an alternative in
which we bring the advantages of
exchange trading, including clear-
ing, to a market that has so far been
organized bilaterally for the greater
part. According to a Bank for Inter-
Despite an early run of
bad luck, derivatives
powerhouses Eurex
and CME are setting of
emerging EU FX futures
markets full throttle.
Moscow has also come
into play with a surge in
forex sales.
Forex Magnates looks
into what makes these
smaller European-reg-
ulated FX markets tick,
focusing on smart policy
challenges and the in-
tegrity that singles them
out.
By Sylwester Majewski
75
cial crisis in response to systemic
risks in Over-the-Counter (OTC)
derivatives markets.
Regulations such as the Dodd-
Frank Act in the U.S. and the Eu-
ropean Market Infrastructure
Regulation (EMIR) compelled OTC
derivative trading to shift to cen-
tralized clearing systems, creating
a situation in which exchanges
had to monetize this specic area
of the forex market. As for the OTC
derivatives market, the BIS report
for 2014 listed forex derivatives as
constituting 10% of the total OTC
market, and the notional amount of
foreign exchange contracts totalled
USD 71 trillion by the end of 2013.
Complementing the Big Players
The objective of the European
Union FX futures markets is to ful-
ll specic market needs created
by local determinants rather than
battle it out for the leading position.
Understanding the importance
of these somewhat out-of-view
exchanges, Forex Magnates con-
ducted a research study of 32 main
exchanges in 30 countries. The
study revealed that exchange FX
derivatives trading was taking place
in only 8 countries and in 6 ex-
changes, as Belgium, France, Neth-
erlands and Portugal form a single
market the Euronext exchange.
So as to highlight these smaller-
scale markets, the biggest Euro-
pean derivatives markets EUREX
and Euronext were excluded
from the research. That leaves four
exchanges in three EU countries
Hungary, Poland and Romania.
The Moscow Exchange has also
been checked of the list, due to
its geographical (non-EU) posi-
tion and its being a home to one of
the most heavily traded FX futures
in the world, the USD/RUB, with
373 MN contracts traded in 2013.
Although some of these markets
have historic roots in the 19th cen-
tury, Europes emerging economy
exchanges are relatively new, hav-
ing been established after the Iron
national Settlements' (BIS) statisti-
cal report published in April 2013
(updated in December), the daily
average global forex market turn-
over totalled USD 5.13 trillion. The
BIS conducts the survey every three
years and the 2010 survey found
daily turnover was about $4 trillion.
As the forex market grew, a relative
market share of major currency
pairs decreased, while other pairs
such as the Chinese CNY and Rus-
sian RUB began taking the stage.
Their market share, especially that
of the CNY, is expanding and will
be continuing in this pattern. This
opened the way to a whole new
ballgame: The introduction of six
new Asian currency-based forex
futures by the Singapore Exchange
(SGX) last year comes across as a
smart decision, as it positions the
exchange as a future key gateway
to Asia. The growing interest of
large-scale exchanges in forex de-
rivatives came on the heels of the
global regulatory changes intro-
duced after the 2008 world nan-
Source: BIS, April 2013
Global Foreign Exchange Market Turnover, Participation by Currency Pair
Fig 20.
34.5%
Rest
33.2%
Rest
31.2%
Rest
1.5%
USD / RUB
26.8%
USD / EUR
27.7%
USD / EUR
24.1%
USD / EUR
13.2%
USD / JPY
14.3%
USD / JPY 18.3%
USD / JPY
11.6%
USD / GBP
9.1%
USD / GBP
8.8%
USD / GBP
5.6%
USD / AUD
6.3%
USD / AUD
6.8%
USD / AUD
3.8%
USD / CAD
4.6%
USD / CAD
3.7%
USD / CAD
4.5%
USD / CHF
0.8%
USD / CNY
2.1%
USD / CNF
4.2%
USD / CHF
3.4%
USD / CHF
2007
2010
2013
121
DETAILED BROKER
INFORMATION
Largest Brokers in
Terms of Volume
FXCM Saxo Bank Alpari OANDA IG Group
GAIN Capital CMC FxPro FXOpen DMM.com
GMO Click Securities
Section
03
ARTICLES 02
122
Shareholders and Funding: Publicly owned, list of shareholders here
Investments and M&As: data at the end of the report
Reported Net Income in 2012: $9.0 million
Reported Net Income in 2013: $14.8 million
Reported Net Income in Q2 2014: $3,078 million
Market Cap: $1.26 billion (as of June 18th, 2014)
Reported monthly retail volume: $272.3 billion (Average for June, July, and August)
Reported monthly institutional volume: $248.3 billion (Average for June, July, and August)
Number of active clients: 178,818 (As of August 2014)
Regulation: NFA/CFTC, UK FCA, HK SFC, ASIC, JFSA
Company Name:
FXCM
Status:
Public (NYSE:FXCM)
News for the Past Quarter:
Year Established:
1999
FXCM August Metrics Show Retail Volumes up 14% Read More Here
FXCM Acquires IBFXs US and Australian Retail MT4 Accounts Read More Here
FXCM Reduces Credit Facility to $150 Million, Cites Strong Balance Sheet Read More Here
FXCM Revenues down 30% YoY as Q2 Figures Reported Read More Here
FXCM Institutional Volumes at $262B in July, Nearly Equals Retail Read More Here
With FXDD Account Purchase, FXCM Retakes Total Account Lead in the US Read More Here
FXCM Faces $200,000 Fine for NFA Breaches Read More Here
FXCM Retail Volumes Dip 3% in June but Institutional Rises 23% Read More Here
123 123
Fig 40. FXCMs share price for the past three months ($)
Fig 41. FXCM: Retail vs. Institutional Volume ($bln)
Source: NYSE
$0
$100
$300
$200
$600
$500
$400
7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14
Retail Institutional Total Source: Forex Magnates
Jul 14 Sep 14 Aug 14
13
14
15
16
149
MAJOR NEWS FOR
Q3 2014
July
August
September
Section
0
4
SERVICES 05
150
JULY
During June, the CLS Bank, reported that average daily trades submitted
for settlement at the group totaled $5.46 trillion. The gures were 13% above
Mays results, and second only to the CLS Banks all-time high of $5.58 tril-
lion achieved in June 2013. Providing reporting of trade settlements, CLS
Bank plays a central part in connecting parties within the decentralized FX
industry. CLS volumes are primarily composed of FX spot and swap trades
sent to organizations by dealers to monitor cash settlement of transactions.
While major centralized ECNs such as Thomson Reuters and EBS have re-
ported declines in their volumes, CLS Bank volumes have stayed more or
less consistent with 2013s activity. As most of CLS Banks trades are from
non-ECN sources, it represents that direct trading with primary dealing
banks has remained strong despite the launch of numerous liquidity pro-
viders which aggregate pricing from numerous sources in one central feed.
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CLS Bank June Volumes
Reported Near All-Time
Highs
With its share price in a multi-year decline and revenues contracting, Lon-
don Capital Group (LCG) has found itself a takeover target since the begin-
ning of 2013, when it was announced that numerous rms were doing
due diligence. Ultimately, each rm dropped its intentions of making a
formal bid. However, with volatility and volumes falling again in 2014, it
has triggered consolidation talk again within the industry. In LCGs case,
the broker once again found itself the target of M&A, having announced it
received an ofer from GLIO Holdings of 17.1M in nancing. This was fol-
lowed up by revelations that privately held Spreadex had made an all cash
bid for the company. Shunning the acquisition, LCG shareholders voted
to accept the nancing deal, despite it being dilutive and leading shares to
new lows for the year.
Read the entire article
London Capital Group
Shuns Buyout from
Spreadex, Takes Financ-
ing from GLIO Holdings
Multi-Asset Brokers and
Venues Survive Q2 Forex
Contraction
Q2 was a period most brokers were happy to put in their rear view mir-
rors as historically low volatility dampened trader volumes. With several
rms reporting their Q2 results during July, one key trend was the ability
of brokers with multi-asset oferings to weather the storm. In the UK, CFD
and Forex brokers, IG Group and Plus500, both reported weakness in Q2.
Specically, forex trading was notably lower as traders were less active due
to falling volatility. Nonetheless, neither rms bottom line results failed
to meet expectations. In IGs case, they noted that trading of their non-FX
products remained ahead of last year. Similarly, Plus500s diverse product
base allowed them to achieve lower acquisition costs during the period. In
addition to brokers, the CME Group also attributed its line of multiple as-
sets among its exchanges to sustain consistent trading, even with volatil-
ity and volumes decline in FX trading.
Read the entire article
151
IG and OANDA launch open API FIX Trading Adds
FX Support on Its Trading Enablement Standard Ini-
tiative (TESI) Forexware Completed its Purchase
of Boston Technologies BinaryStation Certified by
the Financial Commission FXCM and GAIN Capital
Both Report Declining Retail Volumes But Rising In-
stitutional Trading during June
The second quarter was notably quiet in terms of trading and volatility, but
didnt seem to bother retail traders. During the quarter, 39.5% of US retail
forex customer accounts were protable. The gure was a multi-year high,
and a 1.9% increase from Q1. Also during the period, no brokers reported
declines in customer protability, representing an overall advantageous
environment for retail forex traders to be involved in. Leading the way in
protability was OANDA, with 45.5% of its US customers being in the black
during Q2, overtaking the top spot from InteractiveBrokers.
During the quarter, total active account in the US dropped by 2,164 to
92,718. The decline mostly represented the exit of ILQ and FXDD from the
US market. Among individual brokers, FXCM reclaimed the lead of active
US traders after acquiring FXDDs retail customer book, of which most
continued to trade.
Read the entire article
Exclusive: Q2 2014 US
Protability Report,
OANDA and FXCM
Knock of IB
Q2 2014 Change from Q1 2014
% Proft % Loss Total Accounts
Proft %
chg
Accounts
Accounts %
chg
Interactive Brokers 44.1 55.9 25,056 1.0 1,021 4.2
OANDA 45.5 54.9 20,325 3.3 -16 -0.1
Gain Capital 38.0 62.0 10,463 4.6 -356 -3.3
IBFX/TradeStation 37.5 62.5 7,531 2.9 -461 -5.8
FXCM 33.0 67.0 25,660 0.0 3434 -15.5
CitiFX 39.0 61.0 631 1.0 -14 -2.2
MB Trading 28.0 72.0 3,052 0.6 -222 -6.8
Total 37.9 92,718 (2.164) -2.3
US Broker Proftability Report
Source: Forex Magnates
Fig 50.
Catch up on more im-
portant stories from the
Forex Magnates news-
room:
Average proftability change 37.9%
Change from Q1 2.4%
Weighted profitability change 39.5%
Change from Q1 1.9%
Total number of accounts in the US 92,718
Change from Q1 2,164