FXCM and Gain Capital (Forex.com) Q4 results - Lessons Learned
By LeapRate
Now that both Gain Capital and FXCM have announced their final results for 2010 (as well as recent results releases and announcements by others such as IG Group, London Capital Group, and FxPro), what exactly have we learned about these firms, and the overall state of the global Forex market?

A few observations:
1) It is possible for a retail Forex broker to build up a significant institutional business.
2) The “Wall Street” types really do not (yet) understand this industry.
3) Growth has slowed, but is still there.

Now, for the details……

Humorous Branding Campaign with Tagline, ‘It’s your world. Trade It.’ Endeavours to Demystify Rapidly Growing Retail Forex Market
NEW YORK and LONDON, March 1, 2011 — FOREX.com, one of the best known brands in the retail forex industry, is launching its first television branding campaign targeting consumers in the U.S. and abroad.
FOREX.com is part of GAIN Capital (NYSE: GCAP), a global provider of online trading services.
The campaign consists of a series of 30-second spots, each featuring a different “world trader” engaged in forex trading and expressing it in unexpected settings revealed at the end of each commercial. The spots conclude with the campaign’s tagline, It’s your world. Trade it.™, and are posted online at www.youtube.com/forexdotcom.

To view Full Details of Gain’s Q4 and 2010 financial results, see Forex Magnates article just released today

Francesc

GAIN Capital Announces Fourth Quarter and Full Year 2010 Results
GAIN Capital Holdings, Inc. (NYSE:GCAP), a global provider of online trading services at forex.com, has announced its earnings for the quarter and year ended December 31, 2010.

GAIN Capital Holdings, Inc. (NYSE:GCAP), a global provider of online trading services at forex.com, has announced its earnings for the quarter and year ended December 31, 2010.
Financial highlights for the full year 2010 include:

• Record Net Revenue of $189.1 million; growth of 23.4% compared to 2009
• Net Income of $37.8 million (Diluted EPS of $1.00); net income growth of 35.0% compared to 2009
• Adjusted Net Income( ) of $33.9 million; growth of 28.9% compared to 2009
• Record Client Assets( ) of $256.7 million at December 31, 2010; growth of 28.4% compared to 2009

CNBC LAUNCHES “MONEY IN MOTION CURRENCY TRADING,” A NEW PROGRAM TO AIR FRIDAYS AT 5:30PM ET BEGINNING FRIDAY, FEBRUARY 25TH
Weekly Half-Hour Program Hosted By Melissa Lee and Sponsored By FXCM and FOREX.com
ENGLEWOOD CLIFFS, N.J. – February 14, 2011 - CNBC, First in Business Worldwide, today announced CNBC’s “Money in Motion Currency Trading,” a new weekly half-hour program will join the network’s programming lineup beginning Friday, February 25th airing Fridays at 5:30PM ET and broadcasting live from the NASDAQ MarketSite studio in New York’s Times Square.

Some good cashing with Gain Capital IPO…

Francesc

Edison Ventures Announces 18X Gain on GAIN Capital IPO
18X Return Reinforces Edison’s Financial Technology Leadership
By Citybizlist
LAWRENCEVILLE, NJ, — Edison Ventures proudly announces that GAIN Capital Holdings, Inc. of Bedminster, NJ started trading on the New York Stock Exchange under the symbol “GCAP”. Morgan Stanley and Deutsche Bank Securities co-led the offering.
GAIN is a global provider of online retail and institutional foreign exchange. The Company’s primary channel for retail customers is FOREX.com. GAIN services customers in 140 countries and employs over 380 people worldwide.

The Kimono has been opened!
A comparison of the IPOs of FXCM and Gain Capital (Forex.com)
By Leaprate
NEW YORK, NY, Dec. 17, 2010 — With relatively little fanfare beyond mention in several Forex blogs, one of the most monumental (non-regulatory) changes in recent memory has occurred in the online Forex trading sector this past month – two of the leading US-based firms, FXCM and Gain Capital (Forex.com), have gone public.
The IPOs of FXCM and Gain were just one-time events, which did little but stream cash directly to the pockets of the shareholders of both firms. (The offerings were primarily “secondary” offerings, meaning that most of the cash raised did not go to the companies, but rather to the shareholders whose holdings were thereby diluted).
Click here to download LeapRate’s report

GAIN Capital Holdings Announces Pricing of Its IPO
By Forex Magnates
It looks like some people misread the offering reports and thought Gain was offering only 400k shares, whereas it is issuing 400k shares and existing shareholders are selling 8.5million shares so in total almost 9 million shares are to be sold in this offering.
The price however was reduced and Gain will raise $81 million putting the company value at only $279 million (if I remember correctly it had 31 million shares in total).

Going public today just to raise $5M that will be used to cover IPO expenses….. I do not get it?

What’s the benefit of that?

Any help will be much appreciated

Francesc

Gain Capital plans to raise $5M from IPO
By The Associated Press
DES MOINES, Iowa (AP) — Gain Capital Holdings Inc., an online foreign exchange trading platform for retail customers, plans to raise about $5 million with its initial public offering this week.
The Bedminster, N.J., company says it plans to sell 401,692 shares while selling shareholder offer 10.6 million shares, which the company expects to price between $13 and $15 per share.

Gain IPO Only to Cover Expenses?
By Forex Crunch
Fresh reports about the initial public offering of Gain point to a very modest IPO – the company is expected to sell only around 400K of shares, not 11 million as reported earlier. At midpoint, $14 a share, Gain Capital Holding will only raise $5 million – just covering the expenses of the IPO, led by Morgan Stanley.

Hi everyone

Two days ago, our friend and colleague Yohay Ellam reported that Gain Capital’s IPO was
due for this Week.

Today Michael Greenberg at Forex Magnates reported that the IPO is scheduled for tomorrow Wednesday December 15th 2010 so we will keep an eye on it.

Good luck

Francesc

note: The second news speaks by itself. I thought Spanish regulator CNMV was voracious but I see NFA is not behind…

Gain’s IPO is planned for tomorrow – 15.12.2010
By Forex Magnates
Citing reliable sources I can say that Gain Capital’s long planned and expected IPO should take place tomorrow. If nothing unexpected happens its shares will be registered for trading on NYSE under the GCAP symbol.
Gain prices its stock at $14 and intends to raise $154 million giving the company a $434 million value – much lower than WSJ’s earlier estimate of $535 million. Most of the proceeds will go to existing shareholders.

NFA wants a bigger chunk of broker revenues – 4% to be precise!
By Forex Magnates
NFA just announced that its assessment fees increase will become effective on January 1, 2011. Effective January 1, 2011, NFA’s Futures Commission Merchant (FCM) assessment fee will increase from $0.01 per side to $0.02 per side. In addition, the Forex Dealer Member (FDM) assessment fee will increase from $0.01 per $10,000 of notional value to $0.02.

Gain Capital Plans To Sell 11M Shares In Maximum $190M IPO
By DOW JONES NEWSWIRES
Retail foreign-exchange broker Gain Capital Holdings Inc. plans to raise up to an estimated $190 million in an initial public offering of 11 million shares of common stock, which current holders are mostly offering.
Unspecified selling holders plan to offer 10.6 million shares, with the rest being offered by the operator of the popular Forex.com trading website itself. Investors in GAIN Capital include 3i Group PLC, Cross Atlantic Capital, Edison Venture Fund, Tudor Ventures and VantagePoint Venture Partners.

Gain puts a price on its IPO – $535 million post money
By Forex Magnates
Gain Capital which filed its first S-1 over a year ago has renewed it again month and a half ago and now it finally put a price on it. According to WSJ Gain intends to sell 11 million shares for around $190 million and will have a total of 31 million shares after the IPO. This means that at best scenario Gain Capital values itself at just $535 million – roughly half of what FXCM does.