Forex brokerage GAIN Capital has agreed to pay either $250 or $500 for each client it acquires from Forex Capital Markets, which is exiting the US markets due to regulatory measures.
FXCM was forced into a quick sale of its US operations after the regulators discovered that the company traded against its customers for several years while presenting its model as a ‘No Dealing Desk’ order execution model.
What will FXCM receive?
The exact amount FXCM will receive depends on how many FXCM clients actually sign up and trade with GAIN Capital and its Forex.com unit during the first 153 days following account transfer.
For active clients who execute at least one new trade during the first 76 days of the period, FXCM will receive $500 per account. On the other hand, for clients who execute at least one new trade during the period from the 77th day through the 153rd period, GAIN Capital will pay $250 per account.
The closure of the transaction depends on receipt of necessary regulatory approvals.
The retail broker has been permanently barred from the industry and has agreed to pay a $7 million fine.
Considering FXCM’s business overseas, companies like FXCM UK and FXCM France are using social media channels to try to assure customers that the business will continue as usual, no matter what has happened in the US.
No access to apps from FXCMApps.com
FXCMApps.com is FXCM’s online marketplace, which has been active since its official roll out in May 2012.
After several years of existence, the website now displays a short message:
“Apps from FXCMApps.com are no longer available for U.S. Customers.”
This comes as no surprise considering the developments around FXCM over the past days. US customers are not able to access these apps, but they are still available to FXCM customers from other jurisdictions. The offering includes MetaTrader 4 apps, Trading Station desktop apps and standalone apps.