Sorry to be clear, Is FXCM regulated by the NFA or some other org?
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Proposed NFA Capital Requirement
- Thread starter forexsavior
- Start date
Quote from forexsavior:
Yes FXCM is regulated by the NFA
Clarification is in order her.. while firms such as FXCM, Gain, IBFX, and others are registered with CFTC/NFA they are not regulated to the extent one would believe; you see the CFTC/NFA has guidelines in place for over the counter on-exchange FCMS but most of the FX firms out there are off-exchange business so the CFTC/NFA holds little to no jurisdiction over off-exchange FX FCMS actually allowing them to get away with almost anything, and not protecting clients accounts nor funds. If youâre looking to trade FX do yourselves a favor and deal with only on-exchange FCM i.e futures firms and banks as they are full regulated and safe..
Quote from BigGun:
Clarification is in order her.. while firms such as FXCM, Gain, IBFX, and others are registered with CFTC/NFA they are not regulated to the extent one would believe; you see the CFTC/NFA has guidelines in place for over the counter on-exchange FCMS but most of the FX firms out there are off-exchange business so the CFTC/NFA holds little to no jurisdiction over off-exchange FX FCMS actually allowing them to get away with almost anything, and not protecting clients accounts nor funds. If youâre looking to trade FX do yourselves a favor and deal with only on-exchange FCM i.e futures firms and banks as they are full regulated and safe..
No. It's not true. Most FCMs keep customerâs money in US banks where money is safe. Do you agree with that? They also must maintain capital in order to satisfy trading risks.
If you deal with NFA regulated broker you can be sure your money is safe and you can always get it back. And itâs does not matter what markets you trade, OTC or exchange
New CFTC Numbers Are Out
Above $20 Million
Oanda $159,786,916
RJ O'Brien $101,983,527
FXCM $81,150,191
GFT Forex $68,407,128
Gain Capital $66,579,458
I Trade FX $35,037,710
Interbank FX $25,733,263
Below $20 Million
PFG $17,986,053
FX Solutions $16,140,253
CMS $13,726,169
ODL $12,639,482
GFS Forex $10.4
IFX $12,343,198
CMC $8,773,706
Alpari $9,001,039
Ikon $8,271,674
Easy Forex $7,799,807
Hotspot $7,675,145
MB Trading $8,015,568
Friedberg Mercantile $7,985,613
Forex Club $7,639,479
Money Garden $6,367,331
Bacera $5,554,498
Advanced Markets $5,239,792
Above $20 Million
Oanda $159,786,916
RJ O'Brien $101,983,527
FXCM $81,150,191
GFT Forex $68,407,128
Gain Capital $66,579,458
I Trade FX $35,037,710
Interbank FX $25,733,263
Below $20 Million
PFG $17,986,053
FX Solutions $16,140,253
CMS $13,726,169
ODL $12,639,482
GFS Forex $10.4
IFX $12,343,198
CMC $8,773,706
Alpari $9,001,039
Ikon $8,271,674
Easy Forex $7,799,807
Hotspot $7,675,145
MB Trading $8,015,568
Friedberg Mercantile $7,985,613
Forex Club $7,639,479
Money Garden $6,367,331
Bacera $5,554,498
Advanced Markets $5,239,792
Quote from nexx:
New CFTC Numbers Are Out
Above $20 Million
Oanda $159,786,916
RJ O'Brien $101,983,527
FXCM $81,150,191
GFT Forex $68,407,128
Gain Capital $66,579,458
I Trade FX $35,037,710
Interbank FX $25,733,263
Below $20 Million
PFG $17,986,053
FX Solutions $16,140,253
CMS $13,726,169
ODL $12,639,482
GFS Forex $10.4
IFX $12,343,198
CMC $8,773,706
Alpari $9,001,039
Ikon $8,271,674
Easy Forex $7,799,807
Hotspot $7,675,145
MB Trading $8,015,568
Friedberg Mercantile $7,985,613
Forex Club $7,639,479
Money Garden $6,367,331
Bacera $5,554,498
Advanced Markets $5,239,792
Based on your data Interbank FX is going out too. The early warning is 50% of minimum net cap. So, all brokers must have at least 30M in net cap.
But I guess all of them will find money to satisfy the requirements.
Quote from nexx:
New CFTC Numbers Are Out
Above $20 Million
Oanda $159,786,916
RJ O'Brien $101,983,527
FXCM $81,150,191
GFT Forex $68,407,128
Gain Capital $66,579,458
I Trade FX $35,037,710
Interbank FX $25,733,263
Below $20 Million
PFG $17,986,053
FX Solutions $16,140,253
CMS $13,726,169
ODL $12,639,482
GFS Forex $10.4
IFX $12,343,198
CMC $8,773,706
Alpari $9,001,039
Ikon $8,271,674
Easy Forex $7,799,807
Hotspot $7,675,145
MB Trading $8,015,568
Friedberg Mercantile $7,985,613
Forex Club $7,639,479
Money Garden $6,367,331
Bacera $5,554,498
Advanced Markets $5,239,792
Nice Work Nexx!
Switzerland gets an Enema
And so it begins. Switzerland has finally decided to flush their financial system and purge the worst forex dealers from their bloated and cramped bowels. Henceforth, any forex dealer who wishes to do business in Switzerland MUST get a banking license. No longer can firms deceive the public by claiming they are regulated because they have a worthless registration with ARIF or some other anti-money laundering committee. Now they must get an actual license, that comes with an actual license number, which allows the trading public to do an actual background check on them. I congratulate the Swiss on taking this huge step forward and with that, leaving the dark ages and entering the modern era.
For more information on this new law read below. Next week I'll discuss how this law is effecting forex brokers all over Europe. Already two major players are closing their doors (WestCap FX and Northfinance.) Other Swiss brokers are sure to close up shop as well. If you have your money at a Swiss broker you should immediately check with them to see if they plan on complying with the new law. If they do not plan on complying TAKE YOUR MONEY OUT NOW. And if they plan on fleeing to some God forsaken island where there is no regulation TAKE YOUR MONEY OUT NOW.
And so it begins. Switzerland has finally decided to flush their financial system and purge the worst forex dealers from their bloated and cramped bowels. Henceforth, any forex dealer who wishes to do business in Switzerland MUST get a banking license. No longer can firms deceive the public by claiming they are regulated because they have a worthless registration with ARIF or some other anti-money laundering committee. Now they must get an actual license, that comes with an actual license number, which allows the trading public to do an actual background check on them. I congratulate the Swiss on taking this huge step forward and with that, leaving the dark ages and entering the modern era.
For more information on this new law read below. Next week I'll discuss how this law is effecting forex brokers all over Europe. Already two major players are closing their doors (WestCap FX and Northfinance.) Other Swiss brokers are sure to close up shop as well. If you have your money at a Swiss broker you should immediately check with them to see if they plan on complying with the new law. If they do not plan on complying TAKE YOUR MONEY OUT NOW. And if they plan on fleeing to some God forsaken island where there is no regulation TAKE YOUR MONEY OUT NOW.
Switzerland: Foreign exchange traders
Thouvenin Rechtsanwälte, Zurich
http://www.iflr.com/?Page=10&PUBID=33&ISS=24583&SID=702998&TYPE=20
The Swiss Federal Banking Commission (SFBC) estimates that about 150 foreign exchange (forex) traders are registered as financial intermediaries in Switzerland, who have not been subject to regulation under Swiss banking and finance legislation. In particular forex traders managing accounts for more than 20 individual clients did not fall under SFBC supervision in the past, as long as those accounts were not interest-bearing and were only used to execute customer orders.
In recent years, the SFBC has seen a growing number of complaints, especially from smaller investors, regarding transparency, liquidity and risk disclosure, let alone the substantial losses sometimes suffered by these investors.
The SFBC took action in November 2007 by proposing an amendment to Article 3a paragraph 3 section c of the Swiss Banking Ordinance. Forex dealers will be required to apply for a banking status under the Swiss Banking Act of 1934, as amended. At the same time, security dealers and precious metal traders continue to be exempted with their client accounts under said Article 3a paragraph 3 section c. A banking status under the Swiss Banking Act requires a minimum paid-in share capital of Sfr10 million ($9 million) and further equity requirements to appropriately cover credit, operational and other risks. Bank management members in Switzerland must meet certain professional standards. A Swiss bank must also meet organisational standards, providing for separate corporate bodies for supervision, management and control.
From April 1 2008, existing forex traders in Switzerland are required to register with the SFBC. The registration process ends on June 30 2008. One year later, that is, on March 31 2009, forex traders must meet the above requirements and must have applied for a banking licence.
It is expected that many forex dealers will not be able to obtain a Swiss banking licence because they may not be able to meet the capital and/or organisational requirements. Instead of applying for a banking licence they may explore other legal avenues, such as teaming up with a Swiss bank or Swiss security dealer for example and acting as an independent asset manager, converting their business model by no longer accepting deposits from the public, or by offering their forex products by means of securities or through mutual funds.
Great move by Euro land, Banking licensees are not easy to get, especially now a days..
Puzzled buy the way forexsavior is all in favor of Euro land tighten their FX dealer requirements but remains agentsâ stiffer FX dealer requirements with in the USA, could this be because the firm your supporting would not make the cute if and when they do?
:eek:
Puzzled buy the way forexsavior is all in favor of Euro land tighten their FX dealer requirements but remains agentsâ stiffer FX dealer requirements with in the USA, could this be because the firm your supporting would not make the cute if and when they do?
:eek:
Forexsavior,
Why would this affect Northfinance ? (they have no operations in Switzerland )
Where did you read about NF closing shop ?
Why would this affect Northfinance ? (they have no operations in Switzerland )
Where did you read about NF closing shop ?