Forest Park FX has become the IG Group’s first introducing broker in the US, marking the London-based broker launch of its US operations. With this, it becomes the first new entrant to the American market in several years.
Working alongside, Forest Park will provide clients with market access through IG Group, provide cashback rebates for retail traders, trading algorithms, support for money managers and liquidity solution to hedge funds.
Speaking on the occasion, IG US CEO Rupert Osborne said:
“Entering the US Forex market represents a great opportunity for IG. In addition to our own marketing outreach, we wanted to work with top introducing brokers to both spread the word about our offering. Given Forest Park FX’s reputation for adding value to clients and our prior experience with them in Europe, they were always at the top of our list.
IG has been eyeing to enter the US markets for a long time and also has bought FX news and research portal, FXDaily for $40 million in 2016.
Forest Park’s CEO, Justin Hertzberg while speaking to Finance Magnates, said:
“In the wake of ESMA, I think we will see more European-based brokers considering the US market for new, regulated operations given the potential upside. Over the long-term, I think we’ll see a general conversion toward multi-asset brokers with regulation falling in line.”
“Despite regulatory changes brought on by the Dodd-Frank bill and the subsequent contraction of the industry, the US market has remained one of the largest and most sophisticated audiences in the world. The barrier to entry as an RFED is high with the net capital and regulatory obligations, but the business is there. I believe the average US account size is around $6,000. For [our] clients, it is around $11,000.”