I have a Preferredtrade account and got this email today. I have not used the account for years, but I would like to know something about whoever is going to be holding my money. Any opinions? Dear Client, I am pleased to announce that PreferredTrade, Inc. ("PreferredTrade") has entered into an Asset Purchase Agreement with Fimat Preferred, LLC ("Fimat Preferred") whereby Fimat Preferred anticipates acquiring substantially all of the assets of PreferredTrade on or before July 1, 2005. Fimat Preferred is a wholly owned subsidiary of Fimat USA, LLC, which is a U.S. registered broker dealer and NASD member. Fimat USA, LLC is a member of the Société Générale Group, one of France's premier banking organizations.
I don't know anything about the buyout, but I know the firm well from the Pcoast. If I'm not mistaken, they were owned by the Engman's who also once owned Sage, now Merill Pro. I would imagine they do a fair amount of professional traders business because they didn't seem to compete for business on the retail side. There commissions weren't competitive with IB. Fimat must want a platform for an equity business.
I used to have a Preferredtrade account once. I think it was before the turn of the century... Didn't know they were still around...
I haven't place a trade in that account since the turn of the century. It is an IRA, and I should consolidate it with my IB IRA, especially since the holding company is the same now for both. (or was, at least). My idea was to keep diversified accounts in case of trouble. I also have an ameritrade account (previously National Discount Brokers), lol
Fimat is looking to become a global broker and lacked the US equity business that it needed. Preferred has that business and experience with market makers and professional clearing. They may enter the professional market in time and compete with the likes of SLK, MLPro and Bear. The top level management has been successful in any business that they have entered. Fimat picked up a gem in Preferred and will do well in the quarters to come. The US based banks and brokers need to look at what the Euro model has done and wake up or loose the business to better firms who offer lower commish and have better tools and software. Just my opinion.
That's funny. I have an Ameritrade account that used to be Datek... Also an IRA... I have always wondered what happened to National Discount Brokers...