Proposed NFA Capital Requirement

forexsavior · May 28, 2009

Top Forex Dealers by Volume

Michael Greenberg at Forex Magnates has released an interesting new survey on forex broker trading volumes (in the billions).

http://forexmagnates.com/top-forex-brokers-report-over-105b-in-daily-traded-volume/

Monthly Trading Volume

1. FXCM $560,000,000,000
2. Oanda $338,000,000,000
3. Saxo Bank $225,000,000,000
4. Gain $200,000,000,000
5. GFT $175,000,000,000
6. ACM $150,000,000,000
7. PFG $85,000,000,000
8. IBFX $80,000,000,000
9. Alpari $60,000,000,000
10. IG Index $60,000,000,000

This is a useful tool for determining a brokerâs size and stability (in addition to the net capital numbers.)

The following firms have net capital below $20 million
Easy Forex $15,552,000
Ikkon Royal $16,423,000
Alpari $16,557,000
MB Trading $17,031,000
Advanced Markets $19,686,000

The following firms have net capital above $20 million
Forex Club $21,354,000
CMS Forex $29,360,000
PFG $30,444,000
Interbank FX $38,393,000
FX Solutions $45,032,000
GFT Forex $87,169,000
Gain Capital $95,879,000
FXCM $113,463,000
Oanda $161,723,000

Pippi436 · May 28, 2009

Hm, more than i thought. Wonder if every firm did report corrct figures.

FXCM is not that far behind the CME fx-contracts in terms of monthly turn-over (if my quick and dirty calculation is correct - based on APR09 figures). Intuitively i would have thought the CME is miles ahead from the biggest spot retailers.

OddTrader · Jun 3, 2009

Hi Savior

Thanks for the great work from you!

Do you know whether they include the figures of any or some of their white label businesses?

Do you, or anyone else other me, find the ratio of Volume:Net-Capital for individual firms based on the above figures would be interested?

1 => FXCM => 113 => 560000 => 4956
2 => PFG => 30 => 85000 => 2833
3 => IBFX => 38 => 80000 => 2105
4 => Oanda => 162 => 338000 => 2086
5 => Gain => 96 => 200000 => 2083
6 => GFT => 87 => 175000 => 2011

Perhaps that would indicate more of a certain type of traders trading with an individual firm!?

Is there any Norm in this industry for retail traders, or 2000 should be a norm?

Quote from forexsavior:

Top Forex Dealers by Volume

Michael Greenberg at Forex Magnates has released an interesting new survey on forex broker trading volumes (in the billions).

http://forexmagnates.com/top-forex-brokers-report-over-105b-in-daily-traded-volume/

Monthly Trading Volume

1. FXCM $560,000,000,000
2. Oanda $338,000,000,000
3. Saxo Bank $225,000,000,000
4. Gain $200,000,000,000
5. GFT $175,000,000,000
6. ACM $150,000,000,000
7. PFG $85,000,000,000
8. IBFX $80,000,000,000
9. Alpari $60,000,000,000
10. IG Index $60,000,000,000

This is a useful tool for determining a brokerâs size and stability (in addition to the net capital numbers.)

The following firms have net capital below $20 million
Easy Forex $15,552,000
Ikkon Royal $16,423,000
Alpari $16,557,000
MB Trading $17,031,000
Advanced Markets $19,686,000

The following firms have net capital above $20 million
Forex Club $21,354,000
CMS Forex $29,360,000
PFG $30,444,000
Interbank FX $38,393,000
FX Solutions $45,032,000
GFT Forex $87,169,000
Gain Capital $95,879,000
FXCM $113,463,000
Oanda $161,723,000

forexsavior · Jun 3, 2009

Quote from OddTrader:

Hi Savior

Thanks for the great work from you!

Do you know whether they include the figures of any or some of their white label businesses?

good question, not sure

forexsavior · Jun 3, 2009

April Net Capital Report

The CFTC has just released their latest net capital figures. These appear to be the finalists who have survived the net capital guillotine:

http://www.cftc.gov/marketreports/financialdataforfcms/index.htm
The following firms have net capital below $20 million

Easy Forex $15,549,000
Ikkon Royal $16,355,000
MB Trading $17,100,000
Advanced Markets $19,796,000

The following firms have net capital above $20 million

Alpari $20,975,000
Forex Club $21,795,000
CMS Forex $29,649,000
Interbank FX $36,507,000
PFG $36,843,000
FX Solutions $41,546,000
FXCM $60,472,000
GFT Forex $80,693,000
Gain Capital $90,801,000
Oanda $159,739,000

forexsavior · Jun 9, 2009

Forex Dealer Dead Pool Alumnus Busted for Fraud

Former SNC Investment CEO Peter Son has been hauled into court by federal regulators a year after he disappeared during an NFA investigation into missing funds covered on this thread back in October of 2008:

http://www.fxstreet.com/forum/showthread.php?t=1005&page=21

The feds are now confirming that Peter Son was running an $80 million ponzi scheme:

http://www.sec.gov/litigation/complaints/2009/comp21076.pdf

Among the SECâs findings:

Son used investor funds to pay the mortgage on his $2.6 million home in Blackhawk, a gated community in Danville, California, his homeownerâs association dues, and his country club dues;

Son used SNCA investor funds to pay his wife a salary of $3,000 per month even though she did no work for SNCA;

Son and Chung Transferred SNCA investor funds to SNCI to help it meet regulatory requirements that it maintain certain levels of capital; and

Son and Chung transferred SNCA investor funds to SNCIâs Korean bank account, to Sonâs Korean bank account, and to the Korean bank account of a Korean company under Chungâs control.

After covering these poorly capitalized firms for years Iâm not the least bit surprised that SNC illegally used customer funds to meet their capital requirements back when they were still registered with the NFA. Thatâs why cap requirements had to be raised and thankfully the worst of these brokers are long gone in the U.S.

But let this be a lesson to the trading public to avoid opening an account with any poorly capitalized firm, or a firm that is not regulated and does not disclose their financials.

cocaineaddict · Jun 9, 2009

Quote from Ivanovich:

Moved to IB. Liking it much better, though still going slow while I get used to it.

I just use the demo to screw around with some ideas.

What kind of buying leverage do you get with IB?

At least 100x? Also, what is the mnimum for an FX account there?

Thx

cocaineaddict · Jun 9, 2009

Quote from forexsavior:

Top Forex Dealers by Volume

Michael Greenberg at Forex Magnates has released an interesting new survey on forex broker trading volumes (in the billions).

http://forexmagnates.com/top-forex-brokers-report-over-105b-in-daily-traded-volume/

Monthly Trading Volume

1. FXCM $560,000,000,000
2. Oanda $338,000,000,000
3. Saxo Bank $225,000,000,000
4. Gain $200,000,000,000
5. GFT $175,000,000,000
6. ACM $150,000,000,000
7. PFG $85,000,000,000
8. IBFX $80,000,000,000
9. Alpari $60,000,000,000
10. IG Index $60,000,000,000

This is a useful tool for determining a brokerâs size and stability (in addition to the net capital numbers.)

The following firms have net capital below $20 million
Easy Forex $15,552,000
Ikkon Royal $16,423,000
Alpari $16,557,000
MB Trading $17,031,000
Advanced Markets $19,686,000

The following firms have net capital above $20 million
Forex Club $21,354,000
CMS Forex $29,360,000
PFG $30,444,000
Interbank FX $38,393,000
FX Solutions $45,032,000
GFT Forex $87,169,000
Gain Capital $95,879,000
FXCM $113,463,000
Oanda $161,723,000

FXCM decreased net capital by $50MM from May thru June

That can't be good? What would be the legitimate reason for such a large decline?

MrAngry · Jun 10, 2009

It says it paid out a lot of dividends and had a tax liability. Don't think it's anything sinister

cocaineaddict · Jun 11, 2009

Quote from MrAngry:

It says it paid out a lot of dividends and had a tax liability. Don't think it's anything sinister

That sounds very suspicious.......

Dividends? They don't have public shareholders! Tax Liability of tens of millions?????