Last week, I gave you the lowdown on GFT's move to pull out of the retail forex business in the U.S. market. However, you should also know that the U.S. isn't the only retail market that the broker is exiting. GFT CEO Gary Tilkin issued a statement to Forex Magnates, saying that the company's decision is a "strategic repositioning for the U.S. and Japan retail markets."
Some speculate that the NFA could be involved in GFT's move to close shop in Japan. However, folks over at Forex Magnates say that it could be nothing more than the fact that the retail markets of the two countries are just too closely-tied to each other.
So what's gonna happen to GFT's American and Japanese clients now? Don't fret! GFT already struck a deal with two brokers who will take over the accounts.
It was initially thought that U.S.-based clients would be transferred to TD Amitrade, but that didn't turn out to be the case. Gain Capital would be the one taking over the U.S. accounts.
Gain is a pretty big player in the forex industry. Data from Q3 2012 cites that Gain had about 10,500 clients at that time. Adding the 8,500 clients from GFT would boost Gain's influence over the forex industry, making it the third biggest broker in the U.S., trailing only behind FXCM (20,071 accounts) and Oanda (22,841 accounts).
The last day of retail forex trading for GFT was on December 7, 2012, afterwhich, American accounts were transferred to Gain.
After word of the acquisition had gotten out, many in the industry assumed that Gain would also acquire GFT's Japanese retail FX trading accounts. Little did everyone know that Planex-Trade.com, a subsidiary of the Japanese group Planex Holding, will be taking over the accounts.
Unlike their U.S. counterparts, GFT's Japanese clients will still have time to decide whether or not they want to be transferred to Planex-Trade.com. Clients who would like to have their accounts closed can withdraw their available account balances by December 21, 2012.
This move by Planex holding seems to suggest that it wants to be a major player again in the forex trading business after it sold its retail arm earlier on in the year.
According to GFT, their clients should not be worried about the transition. The company has done its best to find brokers that have core values similar to its own. They picked brokers that will be able to give them the same exceptional experience.
But how do you feel about it? Do you agree with GFT's choice? And do you trust GFT's assurance? Let me know through the comments.
- GFT Ends U.S. Retail Trading Operations 07:54 04 December 2012
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