Internet currency trading firm Gain Capital is to acquire American Traders FX, a provider of electronic foreign exchange trading for retail investors, for an undisclosed payment of cash and stock.
Under the terms of the agreement, Gain Capital will assume all ATFX customer accounts and assets. The New Jersey-based AFTX was established in February 2001 to provide a fee-free service to retail investors in the FX markets.
Mark Galant, founder and chief executive officer of Gain Capital, comments: "We view this acquisition as another step toward our goal of becoming the dominant market leader in online currency trading."
He notes further industry consolidation is imminent, pointing to over two dozen independent firms currently offer FX trading over the Internet, of which he believes only a handful possess the FX market experience, technology infrastructure and financial wherewithal to ensure long-term success.