Drew Niv, the CEO of FXCM, declared that he wishes to use the company’s vast amount of cash in order to acquire forex brokers. With growing regulation, it will be hard for small brokers to operate.
Big brokers have the resources to deal with the regulation, and they can enjoy the growing popularity of forex trading and the fact that currency trading is becoming more mainstream. FXCM’s IPO contributed mainstreaming forex.
FXCM currently has around 200 million dollars in cash. This sum is sufficient for both acquisitions and also for handling the recent lawsuits that they’ve received.
Read more of the interview here.