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Forex Broker ReviewHi Guys, There are some interesting changes going on in the industry especially with brokers. I think they are for the best. Because the industry is consolidating. All the little shops are on their way out. The little shops had interesting appeal. They could offer the MT4 platform 2-3 pip spreads on majors and they paid the highest rebates to introducing brokers. So you in turn would hear that they have the “best execution”. This makes no sense, how could these firms have the best execution if they are so small. They are not big enough to get solid lines of credit with their liquidity providers and their liquidity providers are usually middle tier institutional FCM’s, ones that you can go to directly. Because such small dealing firms were allowed to stay in business many disasters happened. Because clients like you were not informed they were unable to pull out their money from some of these smaller firms after the firms went out of business. Well now the industry is finally getting cleaned up and consolidating. Bigger more solid brokers are going to survive, while little bucket shops are going down. Here are the latest changes from congress and the NFA. Key date is December 21, 2007. That is right around the corner. Put out the word
NFA has received notice that the Commodity Futures Trading Commission has approved changes to NFA Financial Requirements Section 11 and the Interpretive Notice entitled "Forex Transactions." The amendments increase the minimum net capital requirement for Forex Dealer Members (FDMs) to $5,000,000. They also eliminate the concentration charge and replace it with restrictions on the types of firms with which an FDM may maintain assets and cover its exposure for purposes of CFTC Regulation 1.17. These changes will become effective on December 21, 2007. Check your firm’s net capital is over $5,000,000 for starters. Even more so, check if it’s over $20,000,000. I have something even more interesting to tell you in the next news letter I send out. Even more serious changes are under way, I just have to make sure I have my facts straight before I send anything out. But check your firm over here http://www.cftc.gov/marketreports/financialdataforfcms/index.htm If your forex dealing firms net capital is under those figures it may be time to find a safer place to keep your hard earned money. You know you can actually do segregated accounts now with some firms! That’s a big one, because that way you will not be considered an unsecured creditor as you were before with every US forex FCM. If you have any questions feel free to contact us. We put a great deal of order flow into some of the bigger firms and would be happy to work with you. We also have a great forex broker review guide for you. |
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