LeapRate Exclusive… LeapRate has learned that FCA regulated Retail Forex brokerage ETX Capital has made another major acquisition of the client list of an active Forex brokerage, its third such acquisition over the past three years.
And apparently it is looking for more.
The acquired client list is of PipIndex, an MT4 broker which was effectively operating as an introducing broker (IB) of turnkey broker solutions provider Finsa Europe. Other brands which white label Finsa Europe solutions have included Jiffix Markets UK, Core Spreads, MagnaTrade, TradeCrowd, and its own brand Finsa Markets.
PipIndex was, at its peak, a fairly popular niche UK trading destination. But, as indicated on its website (above right), is no longer providing trading services. PipIndex’s FCA licensed status as an Appointed Representative of Finsa Europe ended on October 30, 2016, after which activity on its website ceased.
ETX Capital’s previous acquisitions include the Alpari UK client list, exclusively reported by LeapRate, which ETX purchased via special administrator KPMG following Alpari UK’s 2015 bankruptcy – which brought in more than $30 million in client funds and led to a nice bump in revenues and earnings at ETX. And, Ireland-based financial spread betting broker Shelbourne Markets, in mid 2014.
LeapRate approached ETX Capital management, which would not confirm or deny the specific transaction. However ETX did indicate that it has recently acquired a significant client list and is in discussions with others, and that given its experience with such deals – enabling better payouts for the seller, with a high success rate of retaining the acquired clients – it is looking for more acquisitions.
Andrew Edwards, ETX Capital
ETX Capital CEO Andrew Edwards said in a statement to LeapRate:
In these challenging times achieving economies is critical to creating value and ETX has been able to work with these partners to successfully migrate clients onto a single platform to achieve this.
Unlike situations where a company purchases a client list for a small up front payment, ETX has developed a model to significantly enhance the upfront payment or share ongoing revenues to the benefit of both parties . Our TraderPro multi-asset platform, MT4 offering and multi-lingual capabilities have made us a very good fit for companies looking to monetize their valuable customer base.