Gain Capital buys online trading firm City Index

Gain Capital has agreed to buy online trading firm City Index for about $118m.

The merged company will service 235,000 retail customers in more than 180 countries with annual trading volumes of more than $3trn, Gain said.

City Index is majority owned by IPGL, the private holding company for the interests of Michael Spencer, founder and chief executive of ICAP, the global markets operator.

“I am very pleased we have been able to agree to this transaction, which brings benefits for everyone,” said Spencer said.

“I believe GAIN is an outstanding company and will be able to move City Index to the next level, by leveraging its broad array of trading products and services onto a global platform. We believe this combination will enhance GAIN’s leadership position in the FX/CFD industry by putting together two highly complementary companies to create significant value for customers and stakeholders. This is the latest example of the way that IPGL is able to invest actively in businesses over the long term to support their growth and development.”