MG Financial will transfer its 4,000 FX customers to FOREX.com, the retail division of GAIN Capital in an agreement reached this week. MG has been offering online trading services since 1997 but has decided to exit the retail FX industry and cease operations.
With a mere 4,000 accounts, and increased capital and registration requirements and restrictions imposed on leverage, retail FX will no longer have looked as economically feasible to MG as it does to the larger players such as Gain and FXCM.
There will be more small players treading the same path as MG in the coming months as business plans are reconsidered in the light of the CFTC’s new regulations.