TradeKing Group, Inc., an innovator in the online brokerage industry, announced that it has reached an agreement with GAIN Capital Securities Inc. to acquire the accounts as well as the rights to certain other assets of the Cleveland-based boutique brokerage, which is a subsidiary of GAIN Capital Holdings, Inc. (NYSE: GCAP). Exact financial terms of the all-cash acquisition were not disclosed.
The GAIN Securities agreement comes just months after TradeKing’s merger with online broker-dealer Zecco, the integration of which created a compelling alternative to the “mega” brokers. TradeKing and GAIN Securities share the same clearing partner, ensuring a smooth and straightforward transition.
“We see an opportunity in today’s environment to bring greater stability to the independent investor market through this type of consolidation, while offering clients a modern and standout online and self-directed brokerage experience,” said Don Montanaro, CEO of TradeKing Group. “We really can’t wait to show the GAIN Securities clients all that TradeKing has to offer in terms of trading tools and platform as well as our award-winning service – all for a value we know they’ll appreciate.”
Commenting on the agreement, Glenn Stevens, CEO of GAIN Capital said, “We sought to transition the GAIN Securities clients to a firm that shared our commitment to personalized service, innovation and building client trust. As TradeKing’s forex provider, we’re already very familiar with the TradeKing team and offering and knew they would be the ideal firm to deliver on that commitment. Our clients will be in good hands with TradeKing.”
TradeKing and GAIN Securities have filed the acquisition agreement for approval with FINRA and anticipate a smooth approval process, which could conclude within 30-60 days.
“I’m excited about the benefits our clients will see in transitioning to the TradeKing platform,” said Sherry Lavin, President of GAIN Securities. “It will mean access to more advanced trading tools and investor education resources, more options trading capabilities, and top-notch mobile apps. This is a win for GAIN Securities clients.”
Added David Dusseault, TradeKing’s Vice President of Client Services and Brokerage Operations and the executive leading the acquisition process for TradeKing: “GAIN Securities is an organization that always puts its clients first. We look forward to working closely with Sherry and her team to meet and exceed the expectations of GAIN’s brokerage clients.”