Report: OvalX sells client base to Capital.com, possibly closing down

Edit: Capital.com has now confirmed the acquisition stating, “OvalX will offer some of its existing retail and professional clients the opportunity to transfer their accounts to Capital.com. This will ensure continuity of service for OvalX clients and allow them to continue trading without disruption”

Multiple news outlets are reporting today that OvalX (formerly ETX Capital) has sold its customer base to Capital.com, a major UK-based brokerage, and will be closing down.

Following on from our notice last month that the troubled brokerage was no longer accepting new customers and was trying to sell off all or some of its assets, it seems that OvalX will be closing its doors for good sometime in the near future.

The CEO of OvalX allegedly told its employees that the company’s majority owner, venture capital firm Jump Capital, had decided to stop funding OvalX’s parent company (Monecor) in the wake of heavy losses over the last few years. It is alleged that he stated that the management team was “looking at options”, which will likely lead to the wind-down of OvalX.

OvalX’s parent company, Monecor, was acquired by Swiss private equity group Guru Capital in 2020 and merged with Oval Money, another Guru Capital acquisition, in 2021. But it seems that the funding for the acquisition came from Jump Capital, a US venture capital firm.

Based in the United Kingdom, OvalX’s finances have been dented by Brexit and the wider reduction in trading volumes. In 2021, the first financial year under Guru’s ownership, Monecor reported a net loss of £6.8 million, falling from a profit of £428,000 in the previous year. Jump Capital appears to have decided to cut its losses at this point rather than continue with a loss-making business.

In a recent statement, the CEO of Oval said, “2022 was a challenging year due to reduced trading volumes across financial markets, and we were not immune to the macro environment. However, we believe the steps we are taking today will bolster the strength of our overall business proposition over the near and long term. We are committed to providing the best-in-class products and services to our customers, and these efforts are necessary to ensure we continue to do so. We are well-capitalised, and it is business as usual at OvalX. Our customers can rest assured that they will continue to receive uninterrupted trading support services from us.”

Less than two years ago, OvalX secured a licence from the Financial Sector Conduct Authority (FSCA) in Uganda and announced plans to expand outside of its traditional market in the United Kingdom. 

If you are an OvalX customer, please get in touch and let us know your experience.