Proposed NFA Capital Requirement

Quote from squall:

Hell I could write a personal check for that much too.....

Having it clear is a diffrerent story lol...not to mention I'd like to see you get someone to cash a personal check for a couple million dollars too....

That's what bank wires are for.

- why would someone have that much money in a checking account?

Regardless, my point is simply that I don't consider it admirable to do the bare minimum in anything. There was something always said in the military about 70/20/10...it doesn't pay to be 70 or 20.

paraphrased:

70 percent of people in the world aren't worth a damn, won't do jack.

20 percent of people will only step up and do something if it will make them look good or benefit them in some way

10 percent of people in the world will actually be outstanding and strive to be a hard charger in everything they do.

In any case it doesn't thrill me to associate with anyone ( a company or a person) that is only concerned with meeting minimums.
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I wasn't addressing you personally.

As far the million dollar check goes ... I was making a point. Point being a couple million dollars is not a lot of money at all.

I hear what you're saying about 70/20/10. I'm more in the 80/20 camp but the 70/20/10 refers to people not businesses. It's not the same. The way I see the minimum is from my point of view being a business person my whole life but I know it holds true across the board. In my businesses I keep in my accounts what is necessary for operating expenses plus a little slush. The excess is put to use. It is invested, re-invested and allocated in ways that it will increase. Money that is not actively making money is losing money. Tying up funds for the sake there of and not trying not make them grow is a disservice and neglectful to the company and those who depend on it. There is not a successful company in the world that just sits on cash reserves to impress anyone including it's shareholders.

When you are asked for a security deposit for an apartment do you give more to prove you are a better tenant?

When a person receives a home owner insurance quote does he or she offer more in an attempt to prove they are a more responsible home owner than the person next door?

I could use a 100 more examples. When the issue is business related one must think as a business person. When the issue is of a personal nature one must think like a compassionate person. Mixing the two will always lead to misunderstandings and strife.
 
Quote from jonnysharp:

FXCM ($51,000,000)
GFT ($48,000,000)
Oanda ($44,000,000)
FX Solutions ($20,000,000)
Gain Capital ($20,000,000)
CMS ($10,000,000)

and continually monitor their excess capital at http://www.cftc.gov/files/tm/fcm/ and immediately remove your funds if your broker's excess capital has a significant drop or start's downtrending.

Survial of the fittest.
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you sure fcxm has that much, looks like they've got only about 1/4 mil....
 
Quote from bigmrfrank:

I wasn't addressing you personally.

As far the million dollar check goes ... I was making a point. Point being a couple million dollars is not a lot of money at all.

I hear what you're saying about 70/20/10. I'm more in the 80/20 camp but the 70/20/10 refers to people not businesses. It's not the same. The way I see the minimum is from my point of view being a business person my whole life but I know it holds true across the board. In my businesses I keep in my accounts what is necessary for operating expenses plus a little slush. The excess is put to use. It is invested, re-invested and allocated in ways that it will increase. Money that is not actively making money is losing money. Tying up funds for the sake there of and not trying not make them grow is a disservice and neglectful to the company and those who depend on it. There is not a successful company in the world that just sits on cash reserves to impress anyone including it's shareholders.

When you are asked for a security deposit for an apartment do you give more to prove you are a better tenant?

When a person receives a home owner insurance quote does he or she offer more in an attempt to prove they are a more responsible home owner than the person next door?

I could use a 100 more examples. When the issue is business related one must think as a business person. When the issue is of a personal nature one must think like a compassionate person. Mixing the two will always lead to misunderstandings and strife.
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Fair enough. Good post.
 
Another important point to keep in mind is that $5 million is just the initial minimum capital requirement. In addition to this requirement regulators also require brokers to set aside 10% of all customer assets aside in addition to the $5 million requirement. That means that a firm with $30 million in customer assets will have to set aside an additional $3 million. Then there are concentration charges the firm must also set aside capital for. Altogether that means most firm will need at a minimum TEN MILLION DOLLARS in net capital to survive. Judging from the Dead Firms Walking list none of those firms are even remotely close to meeting these requirements. If anything, situation is much worse than it appears. Again, if you have money with a smaller firm talk to your broker and ask them these questions. After all, its only your money at stake.
 
I'm demo trading with a couple of the big firms right now, GFT, FXCM, and Oanda. Not sure who I'll be opening my account with right now. But considering the awful track record of all these little firms it amazes me that anyone would risk their money with a firm that can just up and blow away with the wind due to their tiny size.
 
Well, it looks like the forex dead pool is about to claim its first two victims. Read it and weep.

The NFA has issued serious complaints against two small, undercapitalized firms.

The first is Advanced Markets (Amifx). The NFA says in its complaint, “On June 28, 2007, NFA issued a Complaint charging AMI with cheating, defrauding or deceiving another person or attempting to do so and failure to observe high standards of commercial honor and just and equitable principles of trade. The Complaint also charged AMI with failure to maintain required adjusted net capital; failure to take required charges; failure to collect and maintain required security deposits; failure to file accurate weekly reports; and failure to maintain accurate records.”

http://www.nfa.futures.org/basicnet/...px?seqnum=1251

What is even more frightening is that Amifx has only $1,020,000 in capital. Could this be ANOTHER UGMFX?

The second is against Bacera Corporation (whoever they are?) But just like UGMFX Bacera looks like they got no money left. On June 28, 2007, NFA issued a Complaint charging Bacera with failure to give required notice; failure to maintain required adjusted net capital; failure to take required charges; and failure to maintain accurate records. The Complaint also charged Bacera with cheating, defrauding or deceiving another person or attempting to do so and failure to observe high standards of commercial honor and just and equitable principles of trade. Finally, the Complaint charged Bacera, Wong, Hsu and Valdivia with failure to supervise.

It seems like these smaller firms are going under on a weekly basis. I'll keep everyone posted as the dead forex firms walking continue to die off...
 
Quote from forexsavior:

It seems like these smaller firms are going under on a weekly basis. I'll keep everyone posted as the dead forex firms walking continue to die off...
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Good job forexsavior keep up the great work!
 
FOREX LIQUIDITY LLC
36,104,791 1,000,000 35,104,791 0 0


I thought these guys were the biggest bucket shop of all. Looks like they are doing pretty well.
 
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