FXCM, a well-known Forex brokerage with branches worldwide, has just announced that it will acquire its second Japanese brokerage, Foreland Forex. Only 3 months ago, FXCM acquired GCI, another Japanese brokerage, for only $5 million. Foreland Forex is rumored to be worth at least double that figure.
With a claim to 47% of the retail Forex volume, it's no surprise that FXCM is joining the slew of Forex giants trying to snatch a larger share of this market. Likewise, with new regulations in the United States, it has become more difficult for US Forex brokers to profit in the region, prompting them to expand their reach, perhaps, more quickly than they would have otherwise.
In a recent press release, Drew Niv, CEO of FXCM, noted that "?FXCM Japan is gaining critical mass in Japan, the world's largest retail FX market." The proposed transaction, Niv added, "?is another example of our disciplined acquisition approach. After closing, we look to see immediate payoff from growth in client equity and increased brand recognition in Japan." Niv continued, "?This merger positions FXCM Japan to be one of the largest retail FX brokers in the Japanese market, where we continue to grow in size, but more importantly continue to strive to bring the top product to Japanese traders." Adding, "?Foreland targeted a very different customer base than we normally do and this adds worth to the acquisition because it diversifies our holdings."
When the acquisition is complete, traders of Foreland Forex will be able to take advantage of all of the services offered by FXCM including the trading of oil, gold, stocks and Forex, as well as the use of the company's indicators and charting tools.