Unregistered FX IB’s out and 20million cap FX FCM in

[fluttrader]

Those big firm have become so big because they are good at playing games with traders and now they lobbied to eliminate competition.

A good example is James De Wet who managed accounts at FXCM.
His performance numbers on his website were false.
Did FXCM discontinued the relationship with James because of his dishonesty ?

NO, James made a commission for every trade placed and FXCM pocketed the $ from the losses, they were partners in crime.

 

[fluttrader]

see attached file

 

[BigGun]

The 20million cap is just one issue you we all should be taking into considerations when choosing a FX broker. From my prospective the most imported is; what are new category “forex dealers” requirements? We know FX firms not related to banks or Futures firms yet able to reach the 20m mark will be soon classified under “a new classification “forex dealers” dose anyone know these new rules’ / were could they be read, and what are the chances of even the strongest capitalized forex dealers will be able to adapt their business models to comply?

 

[Jurij12505]

Quote from BigGun:

No dukascopy is not reg with NFA but they are Reg with Swiss land who are also passing new laws,

http://www.forexfactory.com/showpost.php?p=1956798&postcount=700


http://www.iflr.com/?Page=10&PUBID=33&ISS=24583&SID=702998&TYPE=20

As stated numerous time in previous post, if the FX firm your with is not Regulated as a bank or futures firm 99.9% chance they will be closed down by years end, USA/Swiss started this reform and will soon force other regions to follow suite.

Dukascopy is regulated according Swiss legislation. Now in process for bank license. And I do not understand why swiss company need to be regulated by NFA

 

[achilles28]

I could be mistaken. But the only news-worthy provision here is capital requirements.

This does not centralize exchanges, regulate market makers or mandate electronic order-matching. It just says, put up 20 million in capital to operate under NFA sanction.

This does nothing for spreads, competition, broker-induced slips or latency.

Basically, all the shennigans will continue with retail buckets. They'll just have more fall-back money to operate with.

This is classical artificial scarcity. Corporations lobby to pass bills that restrict competition. Wouldn't be surprised if those parties behind lobbying were Oanda, GFT and FXCM.

Thats a good bet, right there.