Consolidation continues in the Retail Forex market, with the latest contestants in the merger game being FCA regulated Tickmill acquiring CySEC licensed Vipro Markets.
The acquisition was effected by Tickmill injecting $2.2 million of new capital into Cyprus-based Vipro Markets Ltd, in return for a majority stake in the company.
We understand that operating conditions for many Cyprus based FX brokers have been somewhat of a struggle lately, in particular after CySEC introduced more stringent rules for FX and CFD brokers – limiting leverage they can offer and banning inducements to trade such as deposit bonuses. As we’ve written several times recently, we believe that CySEC’s moves will lead to more consolidation in the Retail FX space as smaller companies struggle to survive.
The companies indicated in their announcements about the deal that Tickmill made net profit of $6.27 million last year, with monthly trading volumes in the $40 billion per month range.
Vipro Markets was established in 2015 by Tarmo Kivi and Valerijus Ovsianikas and a group of investors. Mr. Ovsianikas has acted as the company’s CEO since.
LeapRate has learned that the two companies had actually been cooperating for some time throughout most of 2017, which included the sharing of some of the marketing partners and outsourced functions, until the acquisition was officially completed.
Duncan Anderson, Tickmill
Tickmill CEO Duncan Anderson commented:
This is an exciting new chapter for Tickmill and one that will open up many opportunities to create extra value for clients of both of the companies. Tickmill has become a globally recognised broker among smart algorithmic traders and I am confident that the existing clients of Vipro Markets will very much appreciate being part of a bigger and stronger Tickmill Group which will deliver new products and services at a much faster pace under our regulated entities in the United Kingdom, Cyprus and Seychelles.