Gain Capital
 | |
| Public | |
| Traded as | NYSE: GCAP |
| Industry | Financial Services |
| Founded | 1999 |
| Headquarters | Bedminster, New Jersey, United States |
Key people | Glenn Stevens CEO |
| Services | Financial broker, On-line forex trading |
Number of employees | 800+ [1] |
| Website | www.gaincapital.com |
GAIN Capital is a US-based provider of online trading services, headquartered in Bedminster, New Jersey.[1] The company provides market access and trade execution services in foreign exchange, contracts for differences and exchange-based products to retail investors. Trading is provided via one of two electronic trading platforms, its own proprietary FOREXTrader PRO, or MetaTrader 4. GAIN Capital allows retail and institutional clients to speculate on global foreign exchange markets in what is known as ‘margin forex trading’.
GAIN Capital operates retail foreign exchange and CFD trading brands, FOREX.com and City Index as well as GTX, a multi-dealer foreign exchange trading platform for institutions and futures group.[2] It also owns advisory CFD business, Galvan,[3] and futures provider, Daniels Trading.[4]
History
GAIN Capital was founded in 1999 in Bedminster, New Jersey, and was one of the early developers of on-line forex trading.
The company went public in 2010 when it floated part of its shareholdings on the NYSE; however, the initial IPO was scaled back at the last minute as target price was not reached.[5]
In October 2014 the company acquired UK-based rival City Index for $118 million, boosting its CFD business and expanding its Forex business in the UK.[6]
Operations
GAIN Capital is a US-based firm but has serviced customers from over 140 countries worldwide and gains over half its revenue from outside the US. GAIN Capital and its affiliates have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore and Seoul. The company's largest retail Forex website is Forex.com, though it also offers white label solutions for dozens of online Forex trading companies, most of which serve the global market.
Regulatory issues
In May 2008 it was told by the Chinese financial regulator, China Banking Regulatory Commission that it had breached rules that prohibit forex trading firms providing retail forex trading services through direct solicitation to Chinese residents through the internet without a permit. It stopped taking Chinese clients from that year and closed down its relationships with existing Chinese Introducing Brokers.[7]
In October 2010, Gain Capital was fined by the National Futures Association for allegedly engaging in margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. They were fined $459,000 and agreed to refund to customers the amount of negative slippage they experienced on the trades that were placed in their accounts between May 1 and July 31.[8][9]
References
- 1 2 "About Gain Capital". gaincapital.com. Retrieved 12 October 2015.
- ↑ "About GTX". gaingtx.com. Retrieved 12 October 2015.
- ↑ "GAIN Capital acquires Galvan Research as it aims to boost cfd offering". financemagnates.com. Retrieved 4 July 2014.
- ↑ "GAIN Capital expands futures business with purchase of majority interest in global asset advisors and Top Third AG Marketing". marketwatch.com. Retrieved 12 March 2014.
- ↑ "Gain Capital (Forex.com) goes public with IPO, price below range". December 15, 2010. Retrieved 21 December 2010.
- ↑ "Spencer sells City Index to GAIN Capital". Financial Times. October 31, 2014.
- ↑ "GAIN Capital: Regulatory Problems Affect Revenue, Margins". seekingalpha.com. December 15, 2010. Retrieved 21 December 2010.
- ↑ "NFA Sanctions Gain Capital $459,000". Futuresmag.com. 28 November 2010.
- ↑ "Case Summary - Gain Capital LLC - NFA 10BCC00015 - NFA ID: 0339826". NFA. November 11, 2010.