Online brokers are merging at a faster pace. FXCM is the biggest name so far

Rising costs and cooling trading activity are pushing retail forex and CFD brokers to buy, sell and merge. AvaTrade’s deal for most of FXCM is the most prominent example, but far from the only one.

Consolidation in the retail trading industry has picked up sharply this year. In October alone, at least five brokers announced deals to buy rivals, their client books or their local subsidiaries.

The largest by profile is AvaTrade’s agreement to acquire the majority of FXCM’s business and brand from Jefferies’ Stratos Group. FXCM, founded in New York in 1999, was one of the first brokers to offer online forex trading to retail clients. Its sale, split between AvaTrade and UK-based Trade Nation, removes one of the industry’s original names as an independent business.

More deals look likely. Smaller brokers face higher fixed costs and thinner margins, while larger groups are looking for licences, clients and new products they can add quickly.

The deals

The recent transactions range from full takeovers to purchases of a single country’s client book:

The FXCM sale stands out because of the brand involved. Jefferies took control of FXCM’s parent after the 2015 Swiss franc shock left the broker needing a rescue, and has since sold the business in pieces. AvaTrade will take the majority of the business and the brand, with clients expected to move over roughly 120 days.

Why now

Several pressures are converging.

Costs. Retail CFD and forex brokers are heavily regulated. Each jurisdiction requires its own capital, staff, reporting and compliance, and those costs change little with the size of the business. Technology spending on mobile apps, AI tools, cybersecurity and longer trading hours adds to the fixed bill.

Cooling activity. Retail trading volumes fell 9.3% from the first to the second quarter of 2026, to $30.4 trillion, according to Finance Magnates’ research arm. Eighteen of the 21 brokers it tracks reported lower volume. Several listed brokers have since flagged calmer markets in their results.

Licences. Winning a new licence can take years. Buying a regulated business is often the faster route into a market, which is why many recent deals focus on specific countries.

Customer demand. Brokers are moving toward offering several asset classes in one account. Plus500 says its US acquisition will support a single app for futures, prediction markets, stocks, options and ETFs from early 2027.

AvaTrade CEO Daire Ferguson pointed to the same trend. “The industry is going through heavy consolidation,” he said. “People want everything in one place, and that takes scale.”

Who buys, who sells

A pattern is emerging. Sellers tend to be older or sub-scale brokers, or owners such as Jefferies with no long-term interest in the business. Buyers are groups with modern platforms and the balance sheet to integrate new clients. Plus500, for example, is funding its two latest deals from more than $860 million in cash.

Some firms are exiting rather than selling. FXOpen’s UK arm, for instance, has applied to cancel its licence and is closing client accounts.

AvaTrade has said it plans further acquisitions. “For AvaTrade, this is just the beginning,” Ferguson said, without naming targets.

What to watch

Integration is the main risk. Client transfers can change platforms, pricing and the regulated entity that holds an account, and brokers that handle them badly can lose clients. Regulators will also be watching how client protections carry over.

For clients of brokers involved in a deal, the practical advice is the same: wait for official notice, check which company will hold the account and save statements before any transfer.

With margins under pressure and buyers active, the number of independent retail brokers is likely to keep shrinking into 2027.

Featured image via Shutterstock.