Hi Everyone
I have been doing my "due diligence" on Forex Brokers.
Many of us may be using brokers that originate in the US. If you did not know (like me) the Federal regulator in the States (NFA) has been setting new regulations for Brokers.
First of all: They set a new bench mark that EVERY registered broker MUST have a minimum of $5,000,000 (five million) net capital. In doing this they have helped weed out some of the "shonky" Brokers.
I have just come upon more information, that the US congress is asking that the minimum net capital for Brokers be raised to $20,000,000 (20 million).
So what does all this mean?
Many small US firms will NOT be around for much longer,(if Congress gets their way) unless they can get the minimum capital from somewhere.
Below is a copy/quote of some information about certain Brokers, and how much capital they have:
"The $20 Million Guillotine
Should the Congress pass legislation requiring all firms have a minimum net capital requirement of $20 million the following firms will be in danger in the United States:
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
GFS Futures & Forex $3.6 million
Hotspot $6.1 million
IFX $17.1 million
Ikon $9.1 million
MB Trading $6.6 million
Money Garden $5.3 million
ODL $13 million
PFG $12.8 million
Now, many of these firms have additional capital they can infuse into their firms (particularly foreign firms like IFX and CMC as well as domestic ones like Hotspot.) But many do not. The customers of these firms should take notice, and if you want to keep trading with these firms, take action."
THOSE ARE NOT MY WORDS. I'm just passing on information that we ALL should take notice of.
Some in the past have lost their hard earned cash to Brokers who were unable to sustain there businesses and money flow.
Again, here is a copy/quote of those Brokers that DO have the required funds, plus those mentioned before:
"Here is the full run down of net capital per firm. Remember that Congress is close to passing a law which would require firms to have a minimum of $20 million to stay in business. Should it pass the industry may only have about a dozen firms left.
The Big Six (Above $20 Million)
1. Oanda $156 million
2. RJ O'Brien $92 million
3. FXCM $75 million
4. GFT $69 million
5. Gain Capital $50 million
6. I Trade FX $34 million
Below $20 Million
7. PFG $19.7 million
8. Interbank FX $19.2 million
9. FX Solutions $17.9 million
10. IFX $15.5 million
11. CMS $13.8 million
12. GFS Futures & Forex $10.2 million
13. CMC $8.7 million
14. Alpari $8 million
15. Ikon $7.9 million
16. Easy Forex $7.6 million
17. Friedberg Mercantile $7.5 million
18. Forex Club $7.4 million
19. MB Trading $7 million
20. ODL $6.9 million
21. Hotspot $6.1 million
22. Money Garden $6 million
23. Bacera $5.4 million
24. Advanced Markets $5.2 million"
THESE ARE NOT MY WORDS.
DON'T SHOOT THE MESSENGER!!!!!!
I'm a newbie. So what would I know? NOTHING!!!! But I try NOT to be a fool. I take my time to check EVERYTHING out FIRST. I have been ripped off by sooooo many people. I do not want a Broker to walk away with my money. If i lose it trading, well, thats my fault.
So may I recommend to all: Do your "Due Diligence" and check out your Broker.
I for one, will be using one of the "The Big Six" mentioned above to live trade, even though some may dislike them.
Check the US government website at: http://www.cftc.gov If you have the time, (there's a lot of reading to do)
I hope this information helps.
Happy Trading
Ozzibob
I have been doing my "due diligence" on Forex Brokers.
Many of us may be using brokers that originate in the US. If you did not know (like me) the Federal regulator in the States (NFA) has been setting new regulations for Brokers.
First of all: They set a new bench mark that EVERY registered broker MUST have a minimum of $5,000,000 (five million) net capital. In doing this they have helped weed out some of the "shonky" Brokers.
I have just come upon more information, that the US congress is asking that the minimum net capital for Brokers be raised to $20,000,000 (20 million).
So what does all this mean?
Many small US firms will NOT be around for much longer,(if Congress gets their way) unless they can get the minimum capital from somewhere.
Below is a copy/quote of some information about certain Brokers, and how much capital they have:
"The $20 Million Guillotine
Should the Congress pass legislation requiring all firms have a minimum net capital requirement of $20 million the following firms will be in danger in the United States:
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
GFS Futures & Forex $3.6 million
Hotspot $6.1 million
IFX $17.1 million
Ikon $9.1 million
MB Trading $6.6 million
Money Garden $5.3 million
ODL $13 million
PFG $12.8 million
Now, many of these firms have additional capital they can infuse into their firms (particularly foreign firms like IFX and CMC as well as domestic ones like Hotspot.) But many do not. The customers of these firms should take notice, and if you want to keep trading with these firms, take action."
THOSE ARE NOT MY WORDS. I'm just passing on information that we ALL should take notice of.
Some in the past have lost their hard earned cash to Brokers who were unable to sustain there businesses and money flow.
Again, here is a copy/quote of those Brokers that DO have the required funds, plus those mentioned before:
"Here is the full run down of net capital per firm. Remember that Congress is close to passing a law which would require firms to have a minimum of $20 million to stay in business. Should it pass the industry may only have about a dozen firms left.
The Big Six (Above $20 Million)
1. Oanda $156 million
2. RJ O'Brien $92 million
3. FXCM $75 million
4. GFT $69 million
5. Gain Capital $50 million
6. I Trade FX $34 million
Below $20 Million
7. PFG $19.7 million
8. Interbank FX $19.2 million
9. FX Solutions $17.9 million
10. IFX $15.5 million
11. CMS $13.8 million
12. GFS Futures & Forex $10.2 million
13. CMC $8.7 million
14. Alpari $8 million
15. Ikon $7.9 million
16. Easy Forex $7.6 million
17. Friedberg Mercantile $7.5 million
18. Forex Club $7.4 million
19. MB Trading $7 million
20. ODL $6.9 million
21. Hotspot $6.1 million
22. Money Garden $6 million
23. Bacera $5.4 million
24. Advanced Markets $5.2 million"
THESE ARE NOT MY WORDS.
DON'T SHOOT THE MESSENGER!!!!!!
I'm a newbie. So what would I know? NOTHING!!!! But I try NOT to be a fool. I take my time to check EVERYTHING out FIRST. I have been ripped off by sooooo many people. I do not want a Broker to walk away with my money. If i lose it trading, well, thats my fault.
So may I recommend to all: Do your "Due Diligence" and check out your Broker.
I for one, will be using one of the "The Big Six" mentioned above to live trade, even though some may dislike them.
Check the US government website at: http://www.cftc.gov If you have the time, (there's a lot of reading to do)
I hope this information helps.
Happy Trading
Ozzibob