{{short description|US-based provider of online trading services}} {{Infobox company | name = GAIN Capital Holdings, Inc. | logo = 220px|GAIN Capital | type = Subsidiary | industry = Financial services | traded_as = {{NYSE was|GCAP}} (2010–2020) | foundation = {{Start date and age |1999}} | founder = | defunct = {{end date |2020 |02}} | fate = Acquired by StoneX Group Inc. | successor = | location_city = Warren, New Jersey | parent = StoneX Group Inc. | location_country = United States | key_people = Glenn Stevens (CEO) | services = Financial broker, On-line forex trading | revenue = | operating_income = | net_income = | assets = | num_employees = 800+ <ref name=aboutgain>{{cite web |url= http://www.gaincapital.com/about-gain-capital.shtml |title=About Gain Capital |publisher=gaincapital.com |accessdate=12 October 2015}}</ref> | num_employees_year = 2015 | homepage = {{website |http://www.gaincapital.com }} <br> {{website |https://www.forex.com/ }}<br> {{website |https://www.cityindex.com/}} }}
'''GAIN Capital Holdings, Inc.''' was a US-based provider of online trading services, headquartered in Warren, New Jersey until it was acquired by StoneX Group in 2020.<ref name=aboutgain /> The company provided market access and trade execution services in foreign exchange, contracts for difference (CFDs) and exchange-based products to retail and institutional investors. Trading was provided via one of two electronic trading platforms, its own proprietary FOREXTrader PRO later renamed as StoneX Pro and MetaTrader 4. GAIN Capital allowed retail and institutional clients to speculate on global foreign exchange markets in what is known as ‘margin forex trading’.
GAIN Capital operated retail foreign exchange and CFD trading brands, Forex.com and City Index as well as GTX, a fully independent FX ECN, a multi-dealer foreign exchange trading platform, for hedge funds and institutions.<ref>{{cite web |url= http://www.gaingtx.com/about.shtml |title=About GTX |publisher=gaingtx.com |accessdate= 12 October 2015}}</ref> It also owned advisory CFD business, SALT Invest, and futures provider, Daniels Trading.<ref>{{cite web |url= http://www.marketwatch.com/story/gain-capital-expands-futures-business-with-purchase-of-majority-interest-in-global-asset-advisors-and-top-third-ag-marketing-2014-03-12 |title=GAIN Capital expands futures business with purchase of majority interest in global asset advisors and Top Third AG Marketing |publisher=marketwatch.com |accessdate= 12 March 2014}}</ref>
==History== GAIN Capital was founded in 1999 in Bedminster, New Jersey, and was one of the early developers of online forex trading.
The company went public in 2010 when it floated part of its shareholdings on the NYSE; however, the initial IPO was scaled back at the last minute as the target price was not reached.<ref>{{cite news |url=http://www.ibtimes.com/articles/92466/20101215/gain-capital-forex-com-goes-public-with-ipo-price-below-range.htm |title=Gain Capital (Forex.com) goes public with IPO, price below range |date=December 15, 2010 |accessdate=21 December 2010}}</ref>
In October 2014 the company acquired UK-based rival City Index for $118 million, boosting its CFD business and expanding its Forex business in the UK.<ref name=sold>{{cite news |url=http://www.ft.com/intl/cms/s/0/09b7e6ba-60fc-11e4-b935-00144feabdc0.html#axzz3I3yowRWm |title=Spencer sells City Index to GAIN Capital |publisher=Financial Times |date=October 31, 2014}}</ref>
On February 7, 2017, GAIN Capital agreed to acquire FXCM's US client base a day after the latter had been barred by the CFTC and NFA from doing business in the United States.<ref name="gain-fxcm">{{Cite news |url=http://www.leaprate.com/2017/02/gain-capital-finalizes-acquisition-of-fxcms-us-clients/ |title=Gain Capital finalizes acquisition of FXCM's US clients |date=2017-02-07 |access-date=2017-02-07 |publisher=LeapRate}}</ref> The company paid $7.2 million for these accounts, $500 per account that traded within 76 days and $250 for accounts that traded subsequently.<ref>{{cite web |url=https://financefeeds.com/gain-capital-puts-sum-paid-fxcm-us-client-accounts-7-2m-end-q32017/ |title=GAIN Capital puts sum paid for FXCM US client accounts at $7.2m at end of Q3'2017 |date=November 9, 2017 |publisher=FinanceFeeds}}</ref>
In February 2020, StoneX (formerly INTL FCStone) announced the acquisition of US-based brokerage GAIN Capital Holdings Inc. The all-cash deal, approved by boards of both companies, was worth about $236 million in equity value.<ref>{{Cite web|date=2020-02-27|title=INTL FCStone to Acquire GAIN Capital in All-Cash Deal|url=https://www.financemagnates.com/forex/brokers/intl-fcstone-to-acquire-gain-capital-in-all-cash-deal/|access-date=2020-07-31|website=Finance Magnates {{!}} Financial and business news|language=en}}</ref><ref>{{Cite web|date=2020-02-27|title=INTL FCStone Inc. Agrees to an All-cash Acquisition of GAIN Capital Holdings, Inc. at $6.00 Per Share|url=http://www.globenewswire.com/news-release/2020/02/27/1991754/0/en/INTL-FCStone-Inc-Agrees-to-an-All-cash-Acquisition-of-GAIN-Capital-Holdings-Inc-at-6-00-Per-Share.html|access-date=2020-07-31|website=GlobeNewswire News Room}}</ref>
==Operations== GAIN Capital was a US-based firm but has serviced customers from over 140 countries worldwide and gains over half its revenue from outside the US. GAIN Capital and its affiliates had offices in New York City, New Jersey, London, Cracow, Sydney, Hong Kong, Tokyo and Singapore. The company's largest retail Forex website is Forex.com, though it also offers white label solutions for dozens of online Forex trading companies, most of which serve the global market.<ref>{{cite web|title=Gain Capital Successfully Transfers Former FXCM U.S. Retail Customers To FOREX.com|url=https://www.prnewswire.com/news-releases/gain-capital-successfully-transfers-former-fxcm-us-retail-customers-to-forexcom-300414115.html|website=PR Newswire|date=February 27, 2017}}</ref>
==Regulatory issues== In May 2008 it was told by the Chinese financial regulator, China Banking Regulatory Commission that it had breached rules that prohibit forex trading firms providing retail forex trading services through direct solicitation to Chinese residents through the internet without a permit. It temporarily stopped taking Chinese clients between 2008 and 2010.<ref>{{cite news| url=http://seekingalpha.com/article/241923-gain-capital-regulatory-problems-affect-revenue-margins |title=GAIN Capital: Regulatory Problems Affect Revenue, Margins | publisher= seekingalpha.com |date= December 15, 2010 |accessdate=21 December 2010 }}</ref>
In October 2010, Gain Capital was fined by the National Futures Association for allegedly engaging in margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers.<ref>{{Cite web |title=News & Notices {{!}} NFA |url=https://www.nfa.futures.org/news/newsRel.asp?ArticleID=3676 |access-date=2024-07-31 |website=www.nfa.futures.org}}</ref> They were fined $459,000 and agreed to refund to customers the amount of negative slippage they experienced on the trades that were placed in their accounts between May 1 and July 31.<ref>{{cite news |url= http://www.futuresmag.com/News/2010/10/Pages/NFA-sanctions-Gain-Capital-459000.aspx |title= NFA Sanctions Gain Capital $459,000 |date=28 November 2010 |publisher=Futuresmag.com}}</ref><ref>{{cite web |url=http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0339826&case=10BCC00015&contrib=NFA | title=Case Summary - Gain Capital LLC - NFA 10BCC00015 - NFA ID: 0339826 |publisher=NFA |date=November 11, 2010 }}</ref>
==References== {{Reflist}}
{{Authority control}}
Category:Financial services companies established in 1999 Category:Companies formerly listed on the New York Stock Exchange Category:Financial derivative trading companies Category:Foreign exchange companies Category:2010 initial public offerings Category:American companies established in 1999 Category:Companies based in Somerset County, New Jersey Category:1999 establishments in New Jersey Category:2020 mergers and acquisitions Category:2020 disestablishments in New Jersey Category:Defunct financial services companies of the United States Category:Financial services companies based in New Jersey