Proposed NFA Capital Requirement

I wonder if this new cap will be structured same as the 5m is now, meaning a 20m cap only permit brokers to offering a max of 100:1 if they what 200:1(to stay competitive) that bumps their caps up to 40m, Wow that would be domes day for 90% of these guys, imagine having to 40million tied up in limbo, they would need 10000’s of clients to make a profit.. I guess this is the demise of a lot of them.
 
Reading the full bill it will also bump violation penalties from 100k to 1m!!! talk about compliance, firms CO’s will need to work twice as hard to stay clean now. :)
 
Quote from BigGun:

I wonder if this new cap will be structured same as the 5m is now, meaning a 20m cap only permit brokers to offering a max of 100:1 if they what 200:1(to stay competitive) that bumps their caps up to 40m, Wow that would be domes day for 90% of these guys, imagine having to 40million tied up in limbo, they would need 10000’s of clients to make a profit.. I guess this is the demise of a lot of them.
More...

After 20 dec 2007 mgforex.com changed margin for GBP/JPY
8-time's from 250$ per one lot until 1% (approx 2000$)

fxcm stated recently in e-mail to author that 250$ per one lot
GBP/JPY is possible . Standart offer 1000$ per one lot GBP/JPY
(approx = 1:200 or 0.5%)

Your respectfully
 
Here We Go Again

Well it appears the NFA is not done with its capital increase crusade. They are pushing hard in the Congress to increase the minimum capital requirement to $20 million and it appears they have succeeded. The Congress has passed legislation to do just that:

http://weblog.fxstreet.com/2008/01/new-bill-means.html

When such a new rule would become law is unclear. But it looks like we'll have to go through this whole capital requirement ordeal again...
 
Who Has What

With Congress set to increase capital requirements to $20 million and with the NFA having previously narrowed down the list of U.S. Brokers to 24 I thought it helpful to post the numbers for the remaining brokers in business so everyone knows where the industry is at in the here and now:

According to the latest CFTC Report:
http://www.cftc.gov/marketreports/financialdataforfcms/index.htm


Advanced Markets $1.3 million
Alpari $6.4 million
Bacera $3.1 million
CMC $2.7 million
CMS $11.4 million
Easy Forex $7 million
Forex Club $4.8 million
Friedberg Mercantile $7.9 million
FX Solutions $26.9 million
FXCM $75 million
Gain Capital $50 million
GFS Futures & Forex $3.6 million
GFT $57 million
Hotspot $6.1 million
I Trade FX $23.8 million
IFX $17.1 million
Ikon $9.1 million
Interbank FX $30 million
MB Trading $6.6 million
Money Garden $5.3 million
Oanda $159 million
ODL $13 million
PFG $12.8 million
RJ O'Brien $91 million
 
I think the 20 million cap would be a mistake, it would only leave 8 forex brokers according to your list above. Maybe a few more if some merge.
 
What a lot of the posters here seem to fail to understand is

1: this industry needs stronger regulations in place, people have been crying about fx brokers sneaky tactics for years now. just go search and read the forums, complaint after complaint on FX firms, now in stark compression go search fully regulated futures firms elite trader .com is primarily futures traders, not many complaints their in fact a good 85% of any of the complaints found there are on FX firms. FX firms much to crocket as is.
2: the higher caps and new regulation may run a good deal of brokers out, but on the other hand, will have a new fully capable bunch who can qualifying step in, it’s silly to think otherwise.

Or maybe the ones saying it’ "much to high" are actually connected and profiting from the firms that will never comply. Think about it, who wouldn’t what the new caps and laws in place to protect the clients other then the crocket firms and IB who know they will never be able to comply if they were.
 
Quote from BigGun:

What a lot of the posters here seem to fail to understand is

1: this industry needs stronger regulations in place, people have been crying about fx brokers sneaky tactics for years now. just go search and read the forums, complaint after complaint on FX firms, now in stark compression go search fully regulated futures firms elite trader .com is primarily futures traders, not many complaints their in fact a good 85% of any of the complaints found there are on FX firms. FX firms much to crocket as is.
2: the higher caps and new regulation may run a good deal of brokers out, but on the other hand, will have a new fully capable bunch who can qualifying step in, it’s silly to think otherwise.

Or maybe the ones saying it’ "much to high" are actually connected and profiting from the firms that will never comply. Think about it, who wouldn’t what the new caps and laws in place to protect the clients other then the crocket firms and IB who know they will never be able to comply if they were.
More...


You are correct, but you fail tol mention that over 95% of the complaints come from those who are well funded e.g. FXCM .

So the NFA decides this " Okay now, people have complained about a few brokers, and we need to stop it. These brokers are out of control, so lets raise the adjusted net capital by decreasing the amount of competitors. With most brokers out of the way, the clients wont complain about the same broker again. Cause thats all they will have to deal with"

They remind me of our current president. :mad:
 
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