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Gain Capital (NYSE:GCAP) the second-largest US forex broker in terms of trading volume and client deposits, announced its plans to consolidate its Australian retail forex and CFD business under the brand City Index.
This happens after Gain Capital acquired City Index in April last year and started operating two brands on the Australian market – its global retail forex brand Forex.com and City Index. Now the Forex.com brand will be gradually phased out in Australia in the coming months and its customers will be transferred to City Index. They will be duly notified of the process over the coming weeks.
The former Australian Forex.com customers will gain access to an expanded product offering of more than 5000 markets, including FX and CFDs on indices, commodities, as well as a full range of global and Australian share CFDs. The City Index customers trade on fixed spreads in market hours with forex spreads from 0.8 pips and margin rates starting from 0.5%. They will also be able to trade CFDs on City Index’ proprietary Advantage platform, which is optimized for this purpose, and features automated trading, advanced charting, etc.
“City Index is one of the most well-known and trusted CFD brands in Australia,” commented Samantha Roady, GAIN’s president of retail, quoted in the press release. “This move allows us to focus on further enhancing the City Index service to meet the needs of traders in Australia.”
Gain Capital is the second-largest US forex and CFD broker, operating the brands Forex.com, City Index, the multi-dealer foreign exchange trading platform for institutions and futures group GTX, as well as the advisory CFD business Galvan and futures provider, Daniels Trading. It also offers white-label solutions for online forex trading companies.
Gain Capital was founded in 1999 and went public in 2010. It is based in the US, but serves customers from more than 140 countries and has offices in London, Sydney, Tokyo, Seoul, Singapore and Hong Kong.
City Index was established in the UK in 1983 and became a leading provider of retail trading in forex, CFDs and spread betting (in the UK only). It operates the brands City Index, Finspreads, FX Solutions and IFX Markets brands with core markets in the UK, Middle East and the Asia Pacific.
In October 2014 it entered into an acquisition agreement with Gain Capital. The deal was completed several months later and Gain Capital bought City Index for $118 million, or a net purchase price of $82 million, including $36 million in cash on the company’s balance sheet.