TradeStation to be acquired by Japanese Monex Group

0 Comments

TradeStation the large US multi-asset broker which only recently entered the retail forex space is about to be acquired by the Japanese Monex Group for $411 million.

This is a very interesting step as recently we’ve seen a flurry of transactions of foreign brokers buying Japanese forex brokers (Alpari, FXCM and Ava FX the most recent) amid the latest leverage reductions and tough economic climate in Japan. There are many more Japanese businesses looking to be sold as Japanese market is much larger in terms of number of market participants and hence consolidation is much faster and aggressive there than elsewhere. This move by Monex Group however makes a lot of sense as profits in Japan fall and can only be balanced by either consolidating locally or expanding overseas. TradeStation, a relatively small broker, is certainly an attractive target and is now in a poll position with its unique trading platform to expand in the US retail forex market as well.

Some data about Monex:

FX Volume – $120M a day

FX Clients – 120,192

Income $240M, profit $55M – including FX, Stocks, Bonds, etc

It’s amazing to see how on almost the same number of clients as FXCM an Japanese broker is making 1/100 volume. Average Japanese ‘trader’ trades about 0.01 lots a day while average western client trades about 0.8-1.0 lots a day.

Nikkei and Reuters report:

“Monex Group Inc. (8698) said Thursday it had reached an agreement with TradeStation Group Inc. to acquire the U.S. online brokerage for about 411 million dollars (33.9 billion yen). A U.S. subsidiary of Monex Group will make a tender offer of 9.75 dollars a share for the company listed on the Nasdaq stock market as early as later this month, with the aim of turning it into a wholly owned unit. The expected purchase price is a 39% premium on the average stock price of TradeStation Group over the past three months. Monex Group plans to use cash-on-hand and bank loans to buy the U.S. firm. Monex Group is stepping up its overseas operations in a bid to expand earning sources, as stock transactions by individual investors in Japan remain sluggish.

Shares of Monex slumped 2.1 percent to 16,700 yen, reflecting investor worries over the financial burden. “We have enough cash for this acquisition and we see no impact on our financial health from this,” Monex Chief Executive Officer Oki Matsumoto said at a briefing. TradeStation is one of the six publicly traded online brokers in the U.S. and caters mainly to individual investors, with 48,000 accounts, Monex said in a statement.”







TAGS: , , , , , , , , , , , , , , , , , , ,
 

Related posts:

More information on this subject is found in the latest Forex Magnates Quarterly Report


Comments are closed.

We do not store your information and we do not disclose our sources.


Leave your name/email (not required) if you'd like to be contacted about this story (will not be disclosed):



Digital Currencies

Expert Articles

Fintech, Startups & New Products

Bitcoin Picks: OpenBazaar to Launch Beta, Banco Santander to Devise Bitcoin Strategy

With Bitcoin prices stabilizing around $500 in the final week of August, news about the digital currency this week include Santander devising a Bitcoin Strategy...

Darkcoin trending lower, falls back below 0.005 BTC

After bouncing more than 200% following its drop to below 0.0025 BTC, Darkcoin (DRK) has gradually crept back toward 4-month lows. It is now trading...

Apple partners with Visa, Mastercard and American Express to launch biometric mobile wallet

Bloomberg reports that Apple has partnered with the big 3 credit card providers- Visa, Mastercard and American Express- to launch a mobile wallet, according to...

More Digital Currencies

date

First Client Meeting… Like A First Date?!

Upon starting a new job, we are very excited. We try to impress our others by speaking and acting in just the right way. But...

Juan Colon, Darwinex

Advantages And Disadvantages Of Copy Trading

Traders can collaborate with peers with the same interests, exchanging mutually beneficial trading related information. One such approach is fx copy trading, whereby “Leaders” publish...

Coffee cup and coffee beans on old wooden background

Coffee Futures: Break or a Fake?

Coffee futures can be one of the more volatile commodities around, especially during different seasons where drought concerns or frost concerns in Brazil can really...

More Expert Articles

invstr ios app

Invstr – Making Financial Trading Social One App Download at a Time

Launching recently is social finance app Invstr. The app oofers a gamified version of trading to help users sharpen their investment skills, learn about the market, and communicate with other traders.
Read more

FxPro Launches New In-House Developed Web Trader for MT4 Customers

Expanding its list of in-house developed technologies, FxPro has launched a new webtrader to clients. The trading platform replaces their previous version which was licensed from a 3rd party provider.
Read more

More Fintech, Startups & New Products

Forex Research

Recent Comments

Note: Copyright © 2014 Forex Magnates. All rights reserved.

All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Forex Magnates. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at Forex Magnates are those of the individual authors and do not necessarily represent the opinion of Forex Magnates or its management. Forex Magnates has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Forex Magnates, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Forex Magnates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2014 "Forex Magnates Inc. - Home of the Forex Elite" All Rights Reserved.