Retail forex broker FXCM Inc (NYSE:FXCM) has entered into a new white label agreement with equities and derivative broker Halifax New Zealand to offer retail FX and CFD trading to customers throughout New Zealand.
As part of the agreement, FXCM will be transferring its existing clients in New Zealand to Halifax in the coming months. FXCM will notify clients of this transition ahead of the transfer.
Halifax New Zealand is a licensed “Issuer” with the New Zealand Financial Markets Authority and under the new partnership, Halifax New Zealand will enable its clients to access the FXCM Trading Station or MT4 trading platforms and services. Halifax New Zealand clients will now benefit from FXCM’s distinctive No Dealing Desk Forex and Enhanced CFD execution models, while trading with a locally regulated broker.
The agreement is in line with FXCM’s moves over the past 15 months to both sell assets and free up capital, as it focuses on paying down its high-interest loan from Leucadia National Corp (NYSE:LUK). This type of agreement falls more in the latter (free up capital) category – FXCM gets to keep (and even increase) its trading volumes with NZ based clients, while not having to hold as much capital since the client funds and accounts will formally be held at the white label partner, in this case Halifax New Zealand.
For more on the FXCM-Halifax New Zealand agreement click here.