ForexNewsNow – Renowned forex broker GFT announced recently that it would leave the United States forex market. The company intends to collaborate with US and international institutional clients only. GFT’s retail forex division will be taken over by the high-profile forex broker Gain Capital.
GFT’s decision to leave the United States retail forex market is not surprising. At this moment the United States retail forex market continues to decline due to stricter regulations and tougher capital requirements.
As such many retail forex brokers either decided to change their business model and offer only institutional forex solutions or leave the United States altogether. It’s believed that the institutional forex market makes up over 90% of the global forex market. Yet another reason why more and more brokers decide to leave retail trading behind.
GFT Trading Accounts Will be Taken Over by Gain Capital
GFT revealed that its retail forex trading division will be taken over by the renowned forex broker Gain Capital. The migration of retail customer accounts to Gain Capital began on December 7th. GFT reassured its clients that normal trading will resume shortly after all accounts have been migrated.
Gain Capital is a United States regulated forex broker which belongs to the Gain Capital Holdings Inc. financial service provider group. Gain Capital explained that it would ensure a seamless transition of the accounts registered at GFT. Once this is completed traders may resume normal activities.
Gain Capital is probably the best options for traders now after GFT decided to cease offering its services to US clients. Gain Capital was established in 1999, meaning that it has a substantial experience in the forex trading business.
The company is also one of the most established brokers, meaning that it’s extremely unlikely that it would ever decide to leave the United States market. Its decision to acquire the US retail division of GFT further points out that it’s committed to further expansion in the US.
Gain Capital’s retail forex trading brand is Forex.com which is one of the most popular forex trading brands on the globe. In the US Forex.com is regulated by the Commodity Futures Trading Commission and is also a NFA member. The broker is also licensed by the Financial Services Authority in the UK and Australian Securities and Investments Commission in Australia.
GFT is a business launched in 1997. Before its decision to leave the US retail forex trading market the broker offered high-quality forex trading solutions to US citizens. The broker uses latest technology trading software called DealBook.
Details like these lead to the broker becoming one of the strongest forces in the US market. For example, in Q1 2012 GFT achieved the highest profitability rate amongst US forex brokers. Still, due to declining profits later the year and the shrinking of the market the broker decided to leave the US retail market.
At this moment the services offered by GFT are only available to institutional clients. It provides trading solutions in over 120 currency pairs with spreads as low as just 0.8 in some pairs. Currently GFT’s website advises interested retail traders to visit Forex.com’s website instead.