GAIN Capital Group Reports 536% Increase in Revenues and a Tripling of New Customer Accounts
WARREN, NJ, October 7, 2004 - GAIN Capital Group, Inc., a leading provider of foreign exchange (forex) trading and asset management services for institutional and self-directed investors, today announced 125% growth in total customer accounts for the 12-month period ending September 30, 2004. The company now has customers from 113 countries, currently transacting over $45 billion in forex transactions per month.
"The number of total customer accounts more than doubled in the past twelve months," commented Mark Galant, Chief Executive Officer of GAIN Capital Group. "We have acquired more customers in the past year than we did in the first three years of business," continued Galant. "Furthermore, we added three times the number of new accounts in the third quarter of 2004, as compared to third quarter 2003."
The company's announcement follows the September 29, 2004 release of the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity by the Bank of International Settlements (BIS). The BIS survey noted an increase in average daily forex turnover to $1.9 trillion in April 2004, up by 57% from $1.2 trillion per day in April 2001, the last time the BIS analyzed FX volume.
Mr. Galant noted similarities between the BIS Survey findings and GAIN Capital's growth and financial results over the past three years, since the last BIS Survey was conducted in April 2001.
From 2001 to 2003, daily forex turnover increased 57 percent while GAIN's revenues increased 536 percent. "GAIN Capital Group is growing at almost 10 times the rate of the overall Forex market." stated Mr. Galant. "Our own growth statistics reinforce the BIS's assertion that an increase in the number of individual speculators, hedge funds and other asset managers trading forex contributed significantly to the overall increase in forex volume." GAIN's customer base includes retail traders, hedge funds and asset managers.
Specifically, the BIS report states "factors that have arguably boosted turnover include investors' interest in foreign exchange as an asset class alternative to equity and fixed income, the more active role of asset managers, and the growing importance of hedge funds." (** from September 29, 2004 BIS report.)
The global Foreign Exchange market remains the largest financial market in the world. At $1.9 trillion per day, the Forex market has approximately four times the daily volume of the U.S. Treasury market ($492 billion), and over 33 times the daily volume of the NASDAQ and NYSE combined ($46 billion NYSE; $11 Billion NASDAQ).
About GAIN Capital Group
GAIN Capital Group is the premier independent provider of foreign exchange services including direct-access trading and asset management to institutions and self-directed investors. Founded in 1999 by Wall Street veterans, GAIN is now one of the largest, most respected firms in the industry, servicing clients from more than 110 countries around the globe.
The company's flagship service, GAIN Capital (http://www.gaincapital.com/) focuses on the needs of professional forex traders, including hedge funds and money managers, as well as experienced forex day traders. FOREX.com (http://www.forex.com/) a division of GAIN Capital Group, provides individual investors with a full service trading platform, lower account minimums and extensive educational content.
A registered Futures Commission Merchant, GAIN Capital Group, Inc. is a member of the National Futures Association and is regulated by the Commodity Futures Trading Commission (CFTC). NFA ID #0339826
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Note to Editors:
GAIN Capital Group's percentage revenue growth was verified by Deloitte in September of 2004, when GAIN Capital Group was named a "Rising Star" to the Deloitte New Jersey Technology Fast 50 list for 2004.
Daily volume statistics for the U.S. Treasury market, NASDAQ and NYSE were obtained from Bloomberg.
