OvalX: EXCLUSIVE: London FX Broker Capital.com Buys OvalX's Client Assets

<p>Capital.com, a London-headquartered global broker, is taking steps to purchase the client assets of forex and CFDs broker, OvalX, Finance Magnates has learnt. Details of the deal remain unknown as at press time. </p><p>OvalX had recently told Finance Magnates that it <a href="https://www.financemagnates.com/forex/brokers/ovalxs-previously-etx-capital-future-in-doubt-as-layoffs-begin/" target="_blank" rel="follow">was exploring "strategic options"</a> including a possible merger or asset sale after news emerged that the company might be planning to shut down its operations. While an industry source informed Finance Magnates that the broker has started to relieve some of its team members of their duties, OvalX in a statement mentioned an ongoing "consultation process with some employees".</p><p>Is OvalX in Financial Strait?</p><p>Guru Captial, a Swiss private equity firm, <a href="https://www.financemagnates.com/forex/guru-capital-closes-acquisition-deal-of-etx-capital/" target="_blank" rel="follow">took over ETX Capital</a> in October 2022 following its acquisition of the brokerage which it later <a href="https://www.financemagnates.com/forex/brokers/etx-capital-aims-innovation-after-rebranding-to-ovalx/" target="_blank" rel="follow">rebranded</a> to OvalX in February 2021. OvalX is run by London-based Monecor Limited. </p><p>In one of its most recent financial statements, Monecor reported <a href="https://www.financemagnates.com/forex/brokers/ovalx-previously-etx-capital-turns-loss-in-2021-client-count-jumps/" target="_blank" rel="follow">a pre-tax loss of £9.2 million</a> for the fiscal year 2021 that ended in December 2021. In its prior record, the brokerage had generated £428,000 in net profits.</p><p>Watch this recent Finance Magnates-hosted webinar on succeeding as a broker in 2023.</p><p>Furthermore, the firm's trading revenue dropped -24% to £24.1 million, down from £31.7 million in the previous year even as operating loss reached £9.2 million compared to a profit of £595,000 in fiscal 2020. However, Luca Merolla, the CEO of Oval Money, in a recent statement noted that the company was "well-capitalized." He added that "it's business as usual.</p><p>"The global economy has suffered, and the wider industry experienced a significant reduction in trading volumes in 2022, and we were no exception," Merolla explained.</p><p>He added, "As a result, we continue to explore various strategic options. I want to assure our clients that the OvalX trading support services and customer experience is operating on a business-as-usual basis, and we will maintain the standards that our customers have become used to."</p> This article was written by Solomon Oladipupo at www.financemagnates.com.