Gain Capital
Encyclopedia
GAIN Capital is a global provider of online trading services based in Bedminster
in the United States. GAIN Capital provides market access and trade execution services in foreign exchange, contracts for differences
and exchange-based products to retail investors. Retail clients may trade through a proprietary platform, FOREXTrader PRO, or through the on-line trading platforms
, MetaTrader 4
. Services are provided to the retail market through its brand FOREX.com and via a number of brokers internationally.
GAIN Capital allows retail and institutional clients to speculate on global foreign exchange markets in what is known as ‘margin 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 target price was not reached.
that it had breached rules that prohibition forex trading firms providing retail forex trading services through direct solicitation to Chinese residents through the internet without a permit. It stopped taking Chinese clients from that year and closed down its relationships with existing Chinese Introducing Brokers.
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.
Bedminster Township, New Jersey
Bedminster Township is a Township in Somerset County, New Jersey, United States. As of the 2010 United States Census, the township population was 8,165....
in the United States. GAIN Capital provides market access and trade execution services in foreign exchange, contracts for differences
Contract for difference
In finance, a contract for difference is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time...
and exchange-based products to retail investors. Retail clients may trade through a proprietary platform, FOREXTrader PRO, or through the on-line trading platforms
Electronic trading platform
In finance, an Electronic trading platform is a computer system that can be used to place orders for financial products over a network with a financial intermediary. This includes products such as shares, bonds, currencies, commodities and derivatives with a financial intermediary, such as a...
, MetaTrader 4
MetaTrader 4
MetaTrader 4, better known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients. ...
. Services are provided to the retail market through its brand FOREX.com and via a number of brokers internationally.
GAIN Capital allows retail and institutional clients to speculate on global foreign exchange markets in what is known as ‘margin forex trading’.
History
GAIN Capital was founded in 1999 in Bedminster, New Jersey, and was one of the early developers of on-line forex trading.The company went public
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 2010 when it floated part of its shareholdings on the NYSE; however, the initial IPO was scaled back at the last minute as target price was not reached.
Operations
GAIN Capital is 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 have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore and Seoul. 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.Regulatory issues
In May 2008 it was told by the Chinese financial regulator, China Banking Regulatory CommissionChina Banking Regulatory Commission
The China Banking Regulatory Commission is an agency of the People's Republic of China authorised by the State Council to regulate the banking sector of the PRC except the territories of Hong Kong and Macau, both of which are special administrative regions...
that it had breached rules that prohibition forex trading firms providing retail forex trading services through direct solicitation to Chinese residents through the internet without a permit. It stopped taking Chinese clients from that year and closed down its relationships with existing Chinese Introducing Brokers.
In October 2010, Gain Capital was fined by the National Futures Association
National Futures Association
The National Futures Association is an independent self-regulatory organization and watchdog of the commodities and futures industry in the United States. The NFA oversees and protects investors from fraudulent commodities and futures activities. The NFA also provides mediation and arbitration...
for allegedly engaging in margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers.