AvaTrade is pursuing an acquisition of Stratos, the company operating FXCM and Tradu brands, from current owner Jefferies Financial Group, according to FXnCO Intelligence sources. The deal has now attracted competition from an unidentified cryptocurrency exchange that has also submitted an offer. AvaTrade’s bid reportedly covers the entire Stratos business except FXCM Bullion Limited, the Hong Kong entity servicing Chinese and regional clients. Financial terms from both bidders remain undisclosed, and AvaTrade has not confirmed the pursuit when approached.
The target represents significant industry consolidation, with FXCM remaining a legacy name in CFD trading despite operational challenges. Jefferies acquired majority control through a 300 million dollar bailout during the 2015 Swiss franc crisis, then gained full ownership in September 2023 after foreclosing on parent company GLBR. Recent developments include Tradu ceasing new client onboarding and Stratos reportedly planning over 100 employee layoffs in December.
FXnCO Insight
Watch for potential market share shifts in the CFD space as this ownership battle could reshape retail trading infrastructure and possibly accelerate crypto-traditional finance convergence.
Source: Finance Magnates