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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… LeapRate has learned that the May acquisition by FXCM (NYSE:FXCM) of FXDD’s US client assets was done for cash consideration of $4.4 million.
It turns out that the assets acquired were a little less than previously advertised – FXCM ended up getting $23.4 million in client equity spread among 6,172 active accounts. FXCM’s earlier release on the FXDD acquisition stated they would be getting $27 million in client equity and 7,000 accounts.
Doing some quick back-of-the-envelope calculations, that means that FXCM paid:
- $712 per active account
- 19 cents per dollar of client equity
The amounts outlined were not formally announced by FXCM, but were included in FXCM’s quarterly 10-Q filing with the US Securities and Exchange Commission.
FXDD was the latest retail forex broker to abandon the heavily-regulated US market, following in the footsteps of Alpari US (also sold to FXCM) and FX Solutions (sold to Gain Capital).