Traders and Money Managers Gain Access to the Global Markets
Courier News - March 30, 2004
GAIN Capital offers forex traders direct access to the global foreign currency markets via a real time online trading platform.
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 80 countries around the globe, including professional money managers and self-directed individual investors.
GAIN Capital was selected as 2003 Growth Company of the Year by the New Jersey Technology Council, a Mount Laurel-based association representing about 1,200 member companies. The firm's flagship service, available at www.gaincapital.com, launched in May 2000 and is used primarily by professional traders, money managers.
Of particular note, GAIN's trading volumes increased by more then 100 percent compared to the same period a year ago, underscoring the firm's commitment to anticipating the needs of foreign exchange traders and providing them with innovative trading technology.
"I work closely with my senior management team to make sure we achieve our short-term goals and also set strategic direction for the company," said Mark Galant, the company's founder and CEO. "Our trade volume more then doubled from 2002 to 2003, and it's my responsibility to ensure the firm continues to grown at a rapid space. I'm constantly looking six-12 months out to figure out what our next move should be."
Galant, 45, earned a bachelor's degree from the University of Virginia in Charlottesville and a master's in business administration from Harvard University in Boston, Mass.
Galant has more than 25 years of Wall Street experience, including 15 years trading and management and nine years developing, selling and marketing trading technology. Prior positions include Vice Chairman of FNX Ltd.; Global Head of FX options at Credit Suisse; money manager for Paul Tudor Jones; and floor trader on several commodity exchanges.
GAIN Capital recently launched FOREX.com (www.forex.com) to support the growing number of new entrants to the Foreign Exchange (Forex) market, including self-directed traders from other financial markets who are in need of increased education and support services.
Question: What was the greatest challenge in starting the business?
Answer: Recruiting was a big challenge. I wanted to assemble an experienced team of Wall Street executives, but luring them away from high paying Wall Street jobs in return for an equity stake in a new dot com was not an easy task. Fortunately, many of them were willing to sacrifice their Wall Street salaries for the excitement of joining a new venture, no longer having to commute to NYC every day and, perhaps most importantly, the potential financial upside if GAIN is acquired or does an IPO.
Q: What is the greatest challenge in operating the business?
A: The fact that GAIN is a 24-hour operation is perhaps the most challenging aspect of our business. Forex is a 24-hour market, so we are open continuously from 5pm Sunday night to 5pm Friday. We have to be fully staffed in all departments, from trading to technology and customer support.
Q: What is your business strategy and do you anticipate it changing in the future?
A: This industry is maturing rapidly. To be successful in this extremely competitive environment, firms will need to be very nimble and adapt quickly to changing market conditions.
Q: Describe the competition and what sets you apart from it?
A: GAIN Capital has a solid reputation as a technology innovator. And our management and trading teams are without a doubt the most respected and experienced in our industry. In addition to having the best trading technology on the market, in 2000 GAIN was the very first online forex trading firm to offer instantaneous dealing from live, streaming quotes. This practice is now slowly being adopted as an industry standard. Another reason clients choose GAIN is because we're among the largest online currency trading firms in the US. They can be confident knowing they're dealing with a market leader.
Q: What is your advice to potential operators of a business?
A: Do not underestimate the amount of effort and time it takes to get a business up and running. A good idea is only half the recipe for success - you have to be willing to commit to your venture. There will be many, many long nights and more challenges than you ever expected to face.
