One of the big surprises which hit the market was the insolvency of Alpari UK, however, it was long-awaited as the conflict between its founders had already damaged the company’s stability. But we are not here to discuss about Alpari UK or how it happened. We want to discuss the fact that many brokers intentionally or not trying to make the best out of the chaotic industry and attract media on them.
The first broker which appeared on the front pages of the industry was FXCM, of course for their initially announced massive $225 million loss occurred in client losses. When the company saw that their stocks are free-falling, they used Alpari UK as a media tool that “We might be troubled but we are still here” which was then declined by Alpari management.
Following FXCM, Cyprus based market maker giant IronFX took the media by storm. They first informed media that they made a hefty profit out of the Swiss franc “Black Swan” event. Then they announced their DFCA license. And finally hit the media that we plan to take over Alpari UK and pull them out of the Special Joint Administration.
Following IronFX we have the Australian rising star Pepperstone which claims to be in negotiation with Alpari to take over the company.
As an aggressive industry, the Forex market generally would not have mercy to the falling competitors. Hence the actions demonstrated by FXCM, IronFX and Pepperstone are just yet another example of aggressive brokers that will do everything within their power to stay on the front pages of the media.
What can Alpari UK exposure coverage bring to IronFX and Pepperstone?
- Both brokers claim to be in IPO stage
- IronFX and Pepperstone both are striving to get into the Japanese and Middle East market (although Pepperstone pulled out of Japan as they could not sustain there)
- Both brokers want to attract a part of over 100,000 Alpari UK clients
It seems that both companies have achieved their goals as almost every news site writes about rumors of either company being at the stage of finalizing a deal.
Which firm is likely to seal the deal?
We believe IronFX is more likely to seal the deal. IronFX is doing all they can to increase its exposure in the UK, Japan and Middle East. These three regions were among the strongest regions of Alpari. Hence it makes perfect sense for IronFX to try their best to be the winners of this race.
Based on the information we have received from an IronFX account manager in the UK, since yesterday IronFX CEO Mr. Kashiouris is in London busy with meeting with Alpari UK board of directors and the FCA’s special joint administration.
This story was brought to you by Quyen Nong from London, UK
The first Alpari UK insolvency announcement
Watch now: What Happened to the Swiss Franc and What to Expect next