Stock market continues to like shares of Forex brokers.
As the equity markets in the US continue to set new highs, shares of publicly traded Forex brokers have not been left behind. For the first time since going public in December 2010 (for $14 per share), FXCM saw its share price briefly hit $17 on Wednesday, before settling back down to close at $16.73, its highest ever closing price.
FXCM’s one year price chart tells the story:
This all bodes well for CFD broker Plus500, which is currently in the midst of a two-week pre IPO roadshow. If all goes well, Plus500 will price its IPO early next week, and begin trading on the London Stock Exchange’s AIM market.
Assuming that the Plus500 IPO is successful, we expect a number of other large and mid size Forex brokers to try and follow suit with IPOs of their own. We’ll continue to follow that story as it develops…