AvaTrade Acquires Majority of FXCM in Landmark Consolidation Play

AI summary of the source article

AvaTrade has agreed to acquire the majority of FXCM Group’s business and brand rights, uniting two legacy CFD brokerages under the AvaTrade Group umbrella. Financial terms of the acquisition were not disclosed. The transaction marks the final chapter in a decade-long restructuring of FXCM’s parent company, Stratos Group, in which investment bank Jefferies held majority control following a 2015 liquidity rescue triggered by the Swiss National Bank black swan event. The transaction follows days after Stratos sold FXCM’s UK client book to London-based Trade Nation.

Why it matters

The deal represents major consolidation in the retail FX and CFD brokerage space, expanding AvaTrade's global reach while concluding Jefferies' multi-year involvement with FXCM.

Key facts

• AvaTrade agreed to acquire the majority of FXCM Group's business and brand rights for an undisclosed sum.
• Jefferies has held majority control of FXCM's parent, Stratos, since providing a liquidity rescue following the 2015 Swiss National Bank event.
• The acquisition follows Stratos selling FXCM's UK client book to London-based Trade Nation.