This M&A transaction is also yet another example of the consolidation that has been taking place in Switzerland’s banking industry, which faces rising costs amid pressures on its old bank secrecy regime as well as a period of low margins from global low interest rates and headwinds from difficult markets in some regions.

“The acquisition of this major forex broker secures Swissquote Bank a place among the world’s largest forex service providers. The goal is to merge MIG Bank with Swissquote Bank,” a statement from the firm this week said.

Founded in 2003 as MIG Investments, MIG Bank employs a workforce of 120 people it has offices in Zurich, London and Hong Kong, as well as its Lausanne HQ.

In 2009, MIG Bank became the first forex broker to obtain a Swiss banking licence. MIG Bank has specialised in online forex trading since its foundation.

“The purchase of MIG Bank will enable Swissquote to greatly expand its forex operations, which at a volume of SFr158 billion ($173 billion) accounted for 26.2 per cent of total net revenues in the first half of 2013. In the same period, Swissquote and MIG Bank would have achieved a cumulative volume of SFr483 billion,” Swissquote said.

“Going forward, net forex income is likely to represent about half of the total net revenues of the group,” it said. “Thanks to the acquisition, Swissquote will also enjoy a broader international presence in future, with locations in Switzerland (Gland, Zurich and Bern), Dubai, Malta, London and Hong Kong,” it added.

The transaction has been cleared by authorities in Switzerland, the UK and Hong Kong.

The purchase of MIG Bank was financed entirely with equity capital. The parties have agreed not to disclose the purchase price.