FOREX MAGNATES RETAIL FOREX MARKET QUARTERLY REPORT FOR Q1 2012 This publication is the sole property of Forex Magnates. It has been provided to you based on your statement and agreement that it will be viewed by your eyes only and will not be distributed and/or reproduced in any way. Each publication has been uniquely marked and any person whose publication is found distributed will be traced and charged with copyright infringement. All materials contained in this publication are protected by United States and international copyright laws 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 in this publication is subject to change. Information presented in this publication is of Forex Magnates only and does not necessarily represent the opinion of any Forex broker and/or any other company mentioned in this publication and/or its management. Forex Magnates does its best to verify the accuracy or basis-in-fact of any claim or statement made in this publication, however errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained in this publication or on the Forex Magnates 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 or of its accuracy.
Content Index 1. Q1 2012 Forex market overview and Q2 2012 forecast page 4 2. Media Forex Websites Traffic Survey: Q1 2012 page 14 3. Articles: page 18 page 20 page 22 page 24 page 26 page 28 page 30 - page 32 - page 33 page 35 4. Major news that hit the wires in the past quarter page 36 5. page 49 6. page 61 7. Forex Industry Biggest M&As and Investments page 70 If you have any questions or comments please contact us at report@forexmagnates.com 2
Q1 2012 Forex market overview and Q2 2012 forecast Main trends in Q1 2012: Growth in number of brokers amid lower volumes; industry under pressure The number of forex brokers kept increasing in 2012 despite an evident slowdown in overall forex market growth. Volumes slowed down for most brokers making it much more difficult for a small forex broker to survive. Same slowdown in Q1 2011 almost caused brokers the much needed lifeline. Should the current slowdown continue, we will witness several brokers shutting down or exiting the market. If you have any questions or comments please contact us at report@forexmagnates.com 4
If you have any questions or comments please contact us at report@forexmagnates.com 7
Top 7 non Japanese brokers volume in past 12 months: 400 350 300 250 200 150 100 FXCM Saxo Bank GFT IG Group Oanda Gain (forex.com Alpari 50 0 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Top 15 Forex brokers compared to the rest of the market: 6000 5000 4000 3000 2000 others top 15 1000 0 Q2 2011 Q3 2011 Q4 2011 Q1 2012 If you have any questions or comments please contact us at report@forexmagnates.com 12
If you have any questions or comments please contact us at report@forexmagnates.com 13
Pakistan country report Futures became popular as they offered price movements and opportunities to earn profits as investors were opening up to global opportunities. Forex was gaining pace amongst high net worth individuals on the doors of the rich and elite introducing them to margin Franc as cross rates were not available. alternative trading instruments. were managing clients risk and acting as principal on trades. inception and present values is based on brokers handling cash and trading as principal. kers now had access to real time data via online trading terminals and were able to work closer with traders. The regulators soon caught up as equity brokers started to witness declines more and more players entered the market, as graduates and offering fixed return packages. Investors were investing Brokers get raided - shape and with the high possible returns the high risks were high leverage and unregulated brokers were taking advan- clients and equity brokers. stan which were offering investment in currency trading with- with the rise in trading in currencies over the last ten years however with scams and fraudulent activity taking place, the brokers offering fixed returns without disclosing risks involved in currency investments. - was operating from an office within the stock exchange building. - After the investigation and raids on brokerages, most brokers worth and Excel Financial. Traders were now exposed to additional products with significant volumes on oil, wheat, gold, maintain its position on the world map as a well developed If you have any questions or comments please contact us at report@forexmagnates.com 24
Major news that hit the wires in the past quarter: CFTC settles with 5 brokers, penalizes 2 others FXOpen settles with the CFTC for accepting US clients This was one of the biggest news items last year CFTC sued 14 forex firms (and then 11 more - easily in various jurisdictions. n. Read the full post here. If you have any questions or comments please contact us at report@forexmagnates.com 36
Forex brokers target Australia Ava FX receives ASIC approval, launches Australian office limiting and expensive, Australia stands out as the only stable location for forex brokers looking both for sane regulation and ability to support Asian clients in their time zones. Australia also offers a highly advanced capital markets climate and multilingual staff which helps run operations smoothly. Read the full post here. Admiral Markets launches ASIC licensed office in Australia - Read the full post here. Saxo Bank launches in Australia offices in Australia and now this market giant makes its first steps in the continent. Read the full post here. If you have any questions or comments please contact us at report@forexmagnates.com 38
Detailed broker information for the top 8 non-japanese brokers in terms of volume If you have any questions or comments please contact us at report@forexmagnates.com 49
If you have any questions or comments please contact us at report@forexmagnates.com 59
Recommended Service Providers Saving you Google time Autotrading If you have any questions or comments please contact us at report@forexmagnates.com 61
Forex liquidity bridges and customized development Boston Technologies BT is one of the largest forex bridge and product providers in the world. Its prominence arrived products. Clients include: onezero Clients include: PrimeXM - Clients include: Leverate Clients include: dozens of Middle Eastern, European and Asian brokers. Roustech Clients include: Panda TS specializes in trading platform and solutions integration, developing mobile and web interfaces and basically anything that has to do with Metatrader. Clients include: Gold-i - has since lost its exclusivity but continues to distribute the platform and now also provides its own customized bridge and Clients include: XOGEE - also offers effective and efficient front- and back-office IT solutions for the brokerage business. Clients include: back to list If you have any questions or comments please contact us at report@forexmagnates.com 62
Forex Industry Biggest M&As and Investments If you have any questions or comments please contact us at report@forexmagnates.com 70